Chinese economy & GDP component Analysis

If you are investing in or planning to invest in the Chinese stock market, please refer to what industries account for a large portion of China's GDP, and if you have accurate information about what industries are driving GDP growth, First, let's look at the contribution of Chinese GDP by industry. According to IMF data, China's nominal GDP in 2016 is $ 11.4 trillion.

You can see that the service sector, which accounted for only about 20% of the 1980s, now has a GDP contribution of more than 50% and has made a breakthrough. (About $6 trillion) (The service sector alone is four times the GDP of Korea.)

Service: About 55%

Manufacturing (including architecture): About 25%

Agriculture: Less than 10%

It is no exaggeration to say that the Chinese service sector is leading the global industrial revolution (manufacturing-service industry) with the United States because the size is about 7,000 trillion won. However, the absolute production value of China's manufacturing and agricultural sectors shows that the contribution is declining, but the GDP value is not decreasing.

In the case of the Republic of Korea, the agricultural sector does not maintain a certain level of growth in GDP value like China.

It is true that industries (yes: agriculture) are being sacrificed through diplomacy to save Korea's representative industries. As a result, I understand that it is the starting point of a virtuous cycle of large-scale employment under the leadership of the representative industry and consumption increase. Also, considering that China is based on the geographical advantage of utilizing the abundance of land and production resources and the relatively cheap labor force, it can not be blamed for the diplomatic method that the Korean government has been doing. But in my personal opinion, The state is not a company, and it has an obligation to create an environment where anyone in the Republic of Korea can live well. I think that if we respect the opinions of minority groups engaged in agriculture and small-scale industries and compensate them for some of the profits from new industries in the country, we will not be able to achieve rapid growth but healthy growth.