Service Growth Anchored to Manufacturing

Updated: 2026.01.10 19D ago 1 sources
Promote service‑sector expansion by embedding services directly into manufacturing supply chains (after‑sales, maintenance, design‑integration, logistics) so consumption and employment rise without hollowing out industrial capability. Policies would incentivize vertical linkages and require that new service sectors have contractual or equity ties to domestic factories to preserve value‑chain resilience. — This reframes the services vs deindustrialization dilemma into a concrete industrial policy: grow services without losing manufacturing by making services complements rather than substitutes for domestic production.

Sources

The "Irrational Iron Cage" of Institutional Reform; Services without Deindustrialisation; Japan's Chip Leverage | Society and Economy Digest (December 2025)
James Farquharson 2026.01.10 100% relevant
Chen Chen and other Renmin University commentators in the article warn that shifting to services must be embedded in manufacturing supply chains to avoid losing industrial advantage.
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