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China / Government

Development pattern matters to enhance economy

(english.gov.cn) Updated: 2015-11-09 16:58

The gap between China's economy and the world's economic powers lies in the development pattern which is essential to lift its economy into a higher-level. To enhance its economy, China needs to move from simply focusing on growth rate and scale to paying attention to quality and efficiency.

This does not mean that growth rate is not necessary. The target to double the 2010's gross domestic product and per capita disposable income by 2020 will be an empty talk without a reasonable growth rate.

So, it's important to better handle the balance of speed and quality.

Innovation is the key. New round of technology and industry revolution offers golden chance for the nation to build an innovation-driven economy. To do this, an innovation-friendly environment should be created by developing platforms for entrepreneurs, enhancing technological property system, providing investment for innovation, and coordinating innovation with industries and markets.

Human capital is another important issue. In the future, the nation's talent pool will see seven million college graduates, six million vocational gradates, and more than 300,000 overseas graduates each year. This means that China will have the potential to improve its economy with the accumulation of human capital. Furthermore, reform in education that focuses on creativity and innovation and establishment of new immigration system that attracts international talents will reinforce the human capital buildup.

Industries need to be upgraded. Despite the fact that China ranks the number one in industrial products manufacturing, few of the Made-in-Chinas are in the group of international brands with high added-value. To build a strong economy, China should improve the industrial value chain and manufacture high added-value products. New industries, such as industrial robots, information networks, integrated circuit, new energy, new material, and biological medicine, intelligent manufacturing, online shopping, and Internet finance should be promoted. China has already made initiatives, such as strategies of "Made in China 2025" and "Internet Plus", to improve the industries with new technologies.

Development of coastal and inland city clusters will create a new economic engine, promoting urbanization, improving advanced manufacturing and service industries, and lifting international influences.

To foster a better development mode, reforms in administrative approval system, state-owned enterprises, finance and taxation policies, financial system, will also be necessary as the moves will create a better environment with less barriers and more efficiency.

In addition, efforts in one Belt and One Road Initiative, free trade zones, improved foreign investment market access, and market-opening in service industries will create an open market, paving the road to become a strong economy.

The story is originally written in Chinese by Wang Yiming, deputy director of the Development Research Center of the State Council.

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