Abstract:  China’s economic transition and upgrading is faced with an important historic turning point as the pressure of economic downturn increases and the trend of economic structural upgrading starts formulating. The question lies in that due to the changing profound and complicated international and domestic development environment, the time and space for transition and reform is increasingly constrained. It becomes a historical task of transition and reform and grand challenge for China to shift from an industrial nation to a servicesoriented nation by 2020.

Key words:  the 13th fiveyear plan period, servicesoriented nation, transition and reform