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China to speed up developing new growth engines

Updated: Jul 30,2016 10:19 AM

The transformation of engines plays an important role in maintaining medium to high growth for China’s economy.

Now the structure of economic development power has already been changed. For demand structure, consumption has become the No 1 force. In 2015, consumption contributed up to 66.4 percent to the economic growth and the number reached 73.4 percent in the first half of 2016.

For industrial structure, the service industry has become the biggest industry. In the first half of the year, the service industry accounted for 54.1 percent of the GDP, up 1.8 percentage points than the same period last year.

It is worth noting that new industries and business modes continue to develop fast. In the first half of the year, the amount of online retail sales increased 28.2 percent.

On the other side, there are also problems in efficient supply shortage; the supply structure cannot adapt to demand change. Though the new economy is playing a bigger role in supporting development and employment, promoting transformation and upgrading, it cannot be compared to traditional driven forces in scale. System, mechanism, regulations and environment promoting entrepreneurship and innovation still need to be improved.

To develop new growth engines, first, we should promote supply-side structural reform. Second, we need to develop new industrial advantages. We also should insist on promoting administration streamlining and power delegation, and scientific and technological innovation.