At the beginning of the 13th Five-Year Plan, multiple core indices of China’s economy release positive signals including accelerating structural transformation, fine employment, and innovation and entrepreneurship as well as supply-side structural reform gaining momentum.
China is still a significant factor stabilizing and propelling the global economy. At the curial period for building a moderately prosperous society in an all-round way, the new engine of China’s economy is playing a significant role. We will seek thinking and new strategies to guide new practice and maneuver new progress.
Rise of China’s “new economy”
During the “Two Sessions”, a new-energy bus which is used to serve representatives attracted people’s attention. It conveys a signal of “new economy”. Premier Li Keqiang once used new-energy bus to start his elaboration of the “new energy” at the executive meeting of the State Council on February 24.
Zhu Liqiu, chairman of Hebei Pengyuan Enterprise Group, was impressed by the new economy’s significance. In recent years, his enterprise invested ten percent of its sales volume in research and development and has achieved a major breakthrough in high-power LED technology.
“Internet Plus” becomes a new concept leading the new era thanks to The Report on the Work of the Government 2015
Liu Shijin, a member of the 12th National Committee of the Chinese People’s Political Consultative Conference (CPPCC) and former deputy director of the Development Research Center of the State Council (DRC), said that intelligent manufacturing is being adopted in traditional manufacturing to realize transformation and upgrading through new technologies like the Internet of Things and Cloud Computing, strategic emerging industries including new materials and new energies are booming, which will become new growth points of the Chinese economy.
“Internet Plus” agriculture is also blooming across China. Liu Yonghao, National People’s Congress (NPC) delegate and chairman of the New Hope Group, pointed out that we should provide real-time technical service to farmers and guide animal farming development via Internet data so as to answer to the call for vigorously promoting agricultural modernization put forward in the 13th Five-Year Plan.
Information released at a recent executive meeting of the State Council demonstrates that China will improve “marginal benefits” of government policies and pay more attention to developing “new economy”.
Supply-side structural reform gaining momentum
The 5th Plenary Session of the 18th CPC Central Committee put forward the concept of innovative, coordinated, green, open and sharing-oriented development, whose core is transformation.
This year is a curial one for China to promote structural reform and solve difficulties. “To promote supply-side structural reform is actually to mobilize and fully release new momentum of economic growth via reform,” said Cai Jiming, a NPC delegate, member of the Standing Committee of the Central Committee of China Association for Promoting Democracy and Director of Center for Political Economy at Tsinghua University.
Economist Gu Shengzu, NPC delegate and vice director of the Financial and Economic Committee of the NPC, believed that supply-side reform can not only strengthen micro economic vitality but also give full play to the multiplication effect of system innovation and technological progress on upgrading supply, and thereby facilitate structural upgrade of employment and consumption.
Innovation-driven development is the trend.
As old ways will not fit the times, we have to find a new one, which lies in accelerating the transformation from factor-driven and investment scale-driven development to innovation-driven development.
NPC delegate Wang Zhan believed that innovation should not be limited to technologies and products, and it should cover new business models and patterns. In this respect, Chinese enterprises have kept pace with this round of information technology revolution. Although many original innovations were not born in China, Chinese firms are in the lead in application of new technologies and business patterns.
NPC delegate Lei Jun, CEO of Xiaomi, hoped that the “Two Sessions” can promote the revision of Company Law so as to provide a perfect environment for mass entrepreneurship and innovation and contribute to the transformation to the new economy.
China is embracing a new era of innovation and entrepreneurship which will provide continual drive for China’s economic development.
By Zhang Yi and Yang Jun, correspondents of Guangming Daily