The service sector is tipped to replace the manufacturing industry and become the strongest driver of the Chinese economy.

Economists said China seems to be moving toward a more environmentally sustainable and less resource-intensive growth pattern, as the faster improvement of the service sector is in stark contrast with a sluggish manufacturing industry.

The British financial group HSBC reported on Monday that July's service purchasing managers index was 51.3, signaling a modest increase in business activity in the service sector.