The development level of the tertiary industry is an important indicator for evaluating the social and economic development extent of a country. During the twenty something years after the founding of the People’s Republic of China，the tertiary industry in China achieved some development，however，it is basically under restrained status. It did not show new vitality until after the Third Plenary Session of the Eleventh Central Committee of the CPC. From 1979 to 1991，the tertiary industry increased by 10% on a yearly basis on average，higher than the growth rate of GDP for the same period. The prompt rise of the tertiary industry plays an important role for making the people’s lives more convenient，promoting the development of production and absorbing labor employment. However，the tertiary industry in China is still very backward. In order to fit into the new trend of expediting reform and opening up and economic development，the CPC Central Committee and the State Council decided to expedite the development of the tertiary industry. Jiang Zemin proposed in the Fourteenth Party Congress Report to make great efforts to promote the development of the tertiary industry，which is a profound and meaningful strategic decision.

In order to develop the tertiary industry，we firstly need to resolve the issue of mentality. For a long time，we understand modernization construction primarily to mean building more factories and producing more products，while the tertiary industry is taken as a sector not creating gross social product and national income. We usually took many restrictive measures，such as controlling，blocking，oppressing，clearing and rectifying，such that the tertiary industry has long been deprived of development it should have. We should understand that tertiary industry labor is also general human labor. Like the production process of other physical products，it consumes materialized labor and living labor，creates value and uses value. The difference is that the tertiary industry takes the products created in the primary industry and the secondary industry as its basic material conditions，and produces non-material products by services，and meets various needs of production and living. We should also understand that as scientific and technological advancements become the first priority，the intelligence factor in the production process will become more and more decisive. As the lubricant and potentiating agent for operation of the national economy，the tertiary industry penetrates throughout the primary industry and the secondary industry and is materialized in all kinds of materials factors of production，and becomes a powerful driving force for the development of the primary industry and the secondary industry.

To develop the tertiary industry，we need also to eradicate the outdated idea of inferiority of the tertiary industry，especially for commerce and service industry. In history，the traditional ideas of laying stress on the agriculture and restraining the trade and laying stress on the industry and restraining the trade impeded the development of China’s commodity economy. In this day of reform and opening up，we should radically eradicate such outdated ideas，and establish new ideas of choosing jobs and establish professional pride for the tertiary industry.

The development objective of tertiary industry as put forward by the Central Committee of the CPC and the State Council is：to make efforts to gradually establish a uniform socialist market system，an urban and township social comprehensive service system and a social security system in line with China’s actual condition in ten years or more. The growth rate of the tertiary industry should be higher than that of the primary industry and the secondary industry，and the weight of added value of the tertiary industry in GDP and the weight of employees of the tertiary industry in the total number of social employees should strive to attain or be close to the average level of developing countries.

At present，we should closely focus on establishing a socialist market economic system，and starting from cultivating a uniform socialist market，an urban and township social comprehensive service system and a social security system，put emphasis on expediting the development of industries with small investment，quick returns，big employment potential，and closely related with economic development and people’s living，emerging industries associated with scientific and technological advancements，and tertiary industry in the rural area as well as basic industries having overall and leading impact on national economic development.

The first and foremost condition to expedite the development of the tertiary industry is to make policies more flexible. Most industries in the tertiary industry have a wider outreach and are decentralized，have high fluidity，are small in investment and dominated by labor services，which are the most suitable industries for collective operation，private operation and individual investment. As for railway，highway，important ports，airports，postal service and telecommunications，scientific research，education and urban public utilities，we should stick to the principle of operation dominated by State investments，and in the meanwhile mobilize social forces to do the same. As for service industry，entertainment industry and industries characterized by public interest，such as commerce，catering service，childcare，showering and hairdressing，repair，handling，taxi service，social consulting，family services etc. we should extensively mobilize and depend on all social forces，and give a free hand for all state-owned enterprises and institutions，urban and township collective economic organizations and individuals to operate. We should stick to extensive operation by the State，collectives and individuals，stick to the principle of investors enjoying ownership and benefits，so as to sufficiently mobilize the initiative of all social forces for establishing the tertiary industry. We should simply the registration formalities for establishing tertiary industry enterprises. We should break the monopoly of industries and localities in the market and protect fair competition. Simultaneously，we should speed up to formulate and perfect the laws and regulations relating to the tertiary industry，especially for market administration，perfect the rules for market competition，maintain market order，and integrate the development of the tertiary industry that is robust and in compliance with regulations.

To establish a vigorous self-development mechanism for the tertiary industry oriented toward commercialization and socialization is an important link for the development of the tertiary industry. We should change the current condition in which some industries in the tertiary industry are established as welfare oriented，public interest oriented and public institutional units and operate depending on fiscal allotment and subsidies for an extended period. We should confer autonomous management right on state-owned tertiary industry enterprises，allow them to adopt various flexible modes of operation and enlarge their scope of business. We should actively create all conditions in order to gradually socialize and marketization the logistic service and welfare facilities of enterprises，public institutions and government agencies.

We should proactively encourage the shift of personnel，capital and equipment of the primary industry and the secondary industry toward the tertiary industry. On the one hand，we should encourage the separation of personnel in the secondary industry and administrative organs from factories and administrative organs to carry on tertiary industry business which serve for production and living. On the other hand，we should encourage enterprises in the tertiary industry to conduct cross-section and inter-regional acquisition of industrial enterprises which should be closed down，suspended，consolidated and shifted. We should create convenient conditions for such transfer in terms of property and personnel management systems. In addition，we should encourage university and college graduates and demobilized servicemen to work in tertiary industry enterprises.

We should pay special attention to develop the tertiary industry in rural areas，and actively establish a socialized service system in the rural areas. We should guide township enterprises and peasants to initiate tertiary industry in small towns，build small town markets and infrastructure，so as to promote the shift of agricultural labor toward non-agricultural industries. At the same time，we should also encourage peasants to initiate tertiary industry in the rural area.

We should proactively make use of overseas capital，technologies and sales channels to develop the tertiary industry. We should absorb foreign investments to construct traffic and transportation facilities. In certain eligible cities，we should apply foreign capital for trial initiation of such educational undertakings as natural scientific research，operation and management，and vocational training. We should encourage tertiary industry enterprise to go forth to implement international operations.

To develop the tertiary industry is a great undertaking that directly benefits the people，and bears upon the realization of the second and third phase strategic objectives for China’s economic development. Let us in the spirit of the Fourteenth Party Congress，tightly seize the historical opportunity and employ all favorable conditions to expedite the development pace of tertiary industry and contribution towards pushing the national economy to reach a new high.