China is moving aggressively on advanced manufacturing and the digital economy, with the support of government initiatives, such as "Made in China 2025" and "Internet Plus". The country is also pursuing supply-side reforms to enhance the efficiency of resource allocation, including tax reforms and interest rate liberalization. Under this "innovative growth” scenario, total factor productivity would overtake capital formation to become the major driver of economic growth, and the service sector would account for 70 per cent of GDP by 2030, close to current levels in developed economies.