Global economy transforms to service economy. During the service reform in the context of information warfare，the country that gasps the orientation of service market，guides the innovation of service industry and leads the growth of service economy will be more likely to seize the initiative and the dominant power of the economic development. However，China is backward in the development of service industry during this economic reform. How about the prospect of the development of service economy in China？How to promote the transformation of economic development pattern through the development of the service economy in China and thus to raise the status of China in global economy？Through observation on the development of service economy of developed countries like the US，this article reveals six basic laws of development of the service economy，that is externalization，intermediation，innovation，knowledge-based development，concentration（urbanization），offshore development（globalization），and portrays the three dimensions of the development of service economy. On this basis，this article，through drawing on the successful experience of the developed countries and centering on the weak points and bottlenecks of the development of China’s service industry，puts forth policy suggestions to devote major efforts in developing China’s service economy and points out that it is most important to change the idea of industrial development，break through the system constraint and adopt global perspective，strategic insight and creative thinking to facilitate the service economy to develop along the market-oriented，knowledge-based and international road in China.