The article examines how technology and efficiency impact China's productive service industry. Using data from 29 provinces between 1993 and 2004, the study finds that Total Factor Productivity in the industry increased by 6.5% annually. This growth is driven by technological progress, which accounts for 4.9% of the increase, while technological efficiency contributes 1.5%. The research shows that technological progress plays a crucial role in boosting productivity, and the growth of Total Factor Productivity varies significantly across different regions in China. These findings can help policymakers enhance their strategies for promoting growth in China's productive service industry.