Abstract: Developing service economy in China is of great significance in changing people’s wealth view,strengthening its sustainable development capacity,promoting its economic growth,enhancing people’s well-being and improving its efficiency and benefit.It plays an important role in improving China’s green competitiveness,promoting economic benign cycle,expanding employment,promoting the development of modern agriculture and modern industry,raising the efficiency,adjusting the industrial structure,etc.To identify the route of developing service economy,it is necessary to clarify its foundation and condition.Based on the characteristics of the country and that of the service economy,its economic development law,its comparative superiority,and its newcoming superiority,etc.,it is a rational choice of developing service economy to give a full play to the role of market mechanism and the macroscopical regulation mechanism,to adopt preferential development of the bottleneck service industry and alternative development in the primary and secondary industries,to advance the urbanization process actively,especially the development of service economy in developed city and the opening coastal city,to turn nine-year compulsory education into ten-year’s and to develop agricultural secondary vocational school in the county,to increase the on-the-job personnel’s anticipated income and to expand the middle class.