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By Liu Shijin, DRC

2016-12-13

China’s economy is close to bottoming out, which means a stable medium-speed growth point will soon be reached. Medium-speed growth requires good quality and sound benefits to shore up a sustainable growth momentum. 1. We need to intensify the competition of basic industries such as oil, gas, electricity, telecommunications, railways and finance in an open market and that would lower the operating and production costs of the entire national economy. 2. The reform of rural collective land system would help solve the problem of high housing prices in some cities and is closely related to balanced distribution of population, metropolitan development, the coordinated development of urban and rural areas and farmers' income increase. 3. The transformation and upgrading of some industries require related departments to improve supporting policies and create a favorable environment for market competition. 4. We need to promote opening up of service industry in both domestic and foreign market, including medicine, health care, education, culture and sports, which entail government support for further development. 5. The increased efficiency by emerging technologies has posed new challenges to supervision in terms of the concept, capacity and level of regulation on how to implement supervision in innovation and how to promote innovation in supervision. 6. New energy, new energy vehicles, artificial intelligence and other cutting-edge scientific and technological innovation have displayed a good momentum of development, becoming the new driving forces for economic growth. Basic research, university education and the formation of free exploration system are the weak points in the way for China to become a real innovation power. The new growth momentum requires reform and innovation. In order to cultivate new drivers, we need to combine “traditional economy” with new system and new technologies and rely on the implementation of reform to stabilize market expectations.

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