The main indication of this stable performance is that the economy operated within an appropriate range. The underlying feature demonstrating progress is that our development is becoming better coordinated and more sustainable.
In order to defuse problems and risks, avoid falling into the “middle-income trap,” and achieve modernization, China must rely on development, and development requires an appropriate growth rate.
Tigers in the road
China’s economic development has entered a new normal. Our country is in the crucial period during which challenges need to be overcome and problems need to be solved. Systemic, institutional, and structural problems have become “tigers in the road” holding up development. Without deepening reform and making economic structural adjustments, we will have a difficult time sustaining steady and sound development.
Dual objectives, twin engines
We must focus on achieving the dual objectives of maintaining a medium-high-level growth rate and moving toward a medium-high-level of development. We need to maintain policy continuity and keep expectations stable while moving forward with reform and structural adjustment, and we need to develop twin engines to drive development: popular entrepreneurship and innovation, paired with increased supplies of public good and services. This will ensure that our growth rate is adjusted without weakening momentum and that growth in quantity is underpinned by greater quality, thereby achieving a better-quality, more efficient, upgraded economy.
The slowdown in economic growth, making difficult structural adjustments, and absorbing the effects of previous economic stimulus policies
In the current stage of development, China has to deal simultaneously with the slowdown in economic growth, making difficult structural adjustments, and absorbing the effects of previous economic stimulus policies. As resource-related and environmental constraints grow and costs for labor and other factors of production rise, a model of development that draws on high levels of investment and energy consumption and is heavily driven by quantitative expansion becomes difficult to sustain. We must therefore improve the economic structure while ensuring steady growth.
Procedures and processes must be simplified and time frames must be clarified for all items requiring administrative review, and cuts to government power will be made to boost market vitality.
Made in China 2025
Manufacturing is a traditionally a strong area for Chinese industry. We will implement the “Made in China 2025” strategy; seek innovation-driven development; apply smart technologies; strengthen foundations; pursue green development; and redouble our efforts to upgrade China from a manufacturer of quantity to one of quality.
“Internet Plus” action plan
We will develop the “Internet Plus” action plan to integrate the mobile Internet, cloud computing, big data, and the Internet of Things with modern manufacturing, to encourage the healthy development of e-commerce, industrial networks, and Internet baking, and to guide Internet-based companies to increase their presence in the international market.