This paper analyzes the roots and nature of problems in China’s service industry development.Given the background of a changing environment for the service industry,the author raises several policy suggestions for growing the industry during the 13th five-year plan period:encouraging a strategy that shifts priority from manufacturing industry to the service industry;strenthening research on strategy,plan and policy about the development of service industry;providing stronger policy support for clustering in the service industry;and actively implementing pilot and demonstration projects for institutional and systemic reform of the service industry,and strengthening human resource training and development to firm up industrial foundation.