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By Li Wei, DRC

During my visit to Europe, I was deeply impressed by the strong social concern about China’s economic development. As countries are becoming more and more integrated with each other in the world, China’s development will exert an impact upon other countries to some extent.

I. China’s economic development has enormous potential and is hugely resilient for growth

Since 2011, China’s economic growth has gradually slowed down and economic development is facing some challenges such as population aging, overcapacity, environmental problems and inadequate drivers, etc. Despite all these, China’s development still presents massive potential and resilience. China’s urbanization is far from being completed, investment and consumption both have ample room for growth; industrial systems are complete, human capital is rich and innovation capability is growing. The current growth decline is merely a temporary phenomenon during structural transformation. With the completion of transformation, China’s economy will pursue a sustained growth based on the new development momentum.

II. Five new development patterns

China’s government is clearly aware of the challenges facing it and has made thorough arrangements for economic transformation in the next five years. First, it will create an innovation-driven development pattern to pursue a technology- and innovation-based development; second, it will form a new and coordinated development pattern to balance the development between different regions, the development between urban and rural areas, and the development between economic and social sectors; third, it will formulate a harmonious development pattern between human and nature; fourth, it will form an opening-up pattern in which China’s economy is deeply integrated with world economy; fifth, it will create a pattern in which all people could share in development benefits to reach common prosperity with social equity and justice.

III. Supply-side reform driving economic transformation

To promote economic transformation, China will focus on the structural reform on the supply side. The reason is that currently the main problems for China’s economic development concentrate on the supply side, mainly reflected as weakened traditional growth drivers, asymmetric industrial structures for ecological conservation and unsmooth flow of factors.

China will continue to draw on the experience of other countries and share with them relevant knowledge and experience. Last year, the Development Research Center of the State Council joined the Development Center of the Organization for Economic Cooperation and Development (OECD) as a representative of China’s government. We hope to draw support from this platform to promote with all countries a new round of prosperity for world economy.

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