China's shift from manufacturing to services may disappoint: IIF

Tokyo

CHINA'S economy has slowed sharply as it shifts gears from manufacturing and exporting to a services-led model - a transition that is expected to help it pick up speed in the future. But a new report casts doubt on whether this transition can be achieved smoothly and effectively.

There is a new consensus emerging that "while the manufacturing sector will remain under intense pressure, the services sector will be a sustained source of dynamism for the New China", says a study by the Washington-based Institute of International Finance (IIF),

The new consensus holds that "while the New China would not reach the high pace of economic growth achiev…