By Zhou Hongchun, DRC

2017-1-24

The CPC Central Committee and the State Council have vigorously pushed forward the strategic plan for promoting economic, political, cultural, social and ecological progress as well as the four-pronged comprehensive strategy to make comprehensive moves to finish building a moderately prosperous society, deepen reform, advance the law-based governance of China and strengthen Party self-conduct. They have followed the general principle of ensuring steady progress and adhered to the innovative, coordinated, green, open and shared development mode. Focusing on supply-side reform, China got the 13th Five-Year Plan off to a good start. Under the episode of sluggish world economy, China's economic growth boasts the fastest in the world.

1. Industrial structure has optimized, service industry has increased its share in total GDP, demand structure has improved and energy conservation has gained effective results.

 2. Residents’ income has increased, and urban and rural gap continues to shrink. The supply-side reform and tax reduction are the most important policy measures as they could ensure enterprises’ research and residents’ consumption.

3. Employment is the foundation of people’s livelihood and the guarantee of social stability. Despite that China’s economic growth slowed down, employment opportunities have been increased in sync with economic growth and massive entrepreneurship and innovation have been promoted steadily and micro-businesses have recovered performance.

4. Coal consumption has shown a negative growth since 2014 while the government has intensified the moves of cutting overcapacity and the enforcement on environmental protection. As a result, environmental quality has been improved across the board in China. China’s economy is moving from land finance-based development mode featured by construction projects toward people’s livelihood-centered growth mode, which is bolstered by service industry with its contribution to GDP accounting for over 50%. Work priorities, policy measures, fiscal revenue and expenditure, management ways and models in the central and local governments need to be adjusted. Relevant policy measures need to be integrated and coordinated to realize the goal of building a moderately prosperous society at an early date.

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