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By Zhao Changwen & Xu Zhaoyuan, Research Department of Industrial Economy, Zhu Hongming, Research Institute of Finance of DRC

Research Report, No 87, 2015 (Total 4772)

Abstract:

After China entered the later stage of industrialization in 2012 and its economic and social development stepped into the stage of "new normal", China is faced with the transformation of economic structure and growth power. From the perspective of factor supply, currently the contribution of labor force number and capital accumulation has already prominently decreased and will continue falling. The new driving force mainly depends on the increase of factor quality and optimization of resource allocation to increase productivity. In view of total social demand, it is difficult for investment and exportation to make adequate contribution for economic growth in the later stage of industrialization and the new driving force for economic growth is mainly derived from the expansion of consumers' demand. The process of cultivating new driving force for economic growth will not be completed spontaneously by the market. The government behavior mode should be remolded to adapt to development in the new stage. Major efforts should be made to transform the government from a production-oriented one to a service-oriented one and, through reform, build a unified and open market system with fair competition which is conducive for guiding and encouraging innovation.