There are many dimensions to the evolving economic development model in China and the role for urbanization within it. One key component is a requirement to incorporate a wider range of service industries, especially in the nation's fast-growing cities where there is demand for knowledge and related advanced services that will support, for example, the necessary shift to more 'modern' manufacturing. This paper summarizes progress towards servicification and the rationale for undertaking more research that will deepen understanding of the actual and potential contribution of producer services. Some recent empirical evidence on the growth trends for producer service in selected cities, including the four case study cities of Shanghai, Huangshan, Chongqing and Kunming, is presented. It is shown that in majority of cities the manufacturing-services gap remains a significant.
