In the first State Council meeting on Jan 4, 2017, Premier Li Keqiang called for more efforts from all ministries to accelerate stable transformation toward new growth momentum, and promote prosperous development of primary, secondary and tertiary industries.
Cultivation of new momentum and upgrade of traditional industries is an important way to promote economic restructuring and boost the real economy, said Premier Li.
The Premier added that the government should make efforts to promote the supply-side reform and retire outdated and excessive capacity, while advancing upgrade of traditional industries, especially the real economy.
He stressed that the new economy, business patterns, and momentum should support restructuring of traditional industries, especially the real economy, and help meet people’s rising consumption demands.
The Premier said that consumption has triggered many revolutionary changes in history, and similarly, direct orders from today’s online stores are driving the growth of a large number of manufacturing plants.
Old and new growth momentums are inseparable. The new economy and momentum should not only generate new technologies and business patterns, but also promote the revitalization of traditional industries, said Premier Li.
Currently, part of the real economy driven by traditional engines is not able to adapt to the market changes, so this is where the new momentum and economy have a role to play, he said.
According to the Premier, the real economy is a concept relative to the virtual economy, covering primary, secondary and tertiary industries.
As industries of the new economy, online stores and logistics are also part of the real economy, contributing to sales as well as production, said Premier Li, adding that development of the new economy and new momentum is not only building a new growth engine, but also upgrading the traditional industries.
The Premier urged the leaders of ministries to be flexible in regulating new industries and business models, to ensure stable and coordinated economic transformation.
Flexibility, said Premier Li, means the government should provide better services to enable new business patterns to drive the upgrades and development of traditional industries.
While cutting outdated capacity, more efforts should be made to promote mass entrepreneurship and innovation, and lift traditional industries to a medium and high level based on strategies of “Made in China 2025” and “internet Plus”, he said.
The government should innovate administration, optimize services, and take effective measures to reduce burdens of enterprises, paving the way for the development of the real economy, said Premier Li.