CHINA ECONOMIC GROWTH BOOSTER

Currently, China is holding a National People’s Congress (NPC) and Chinese People’s Political Consultative Conference in Beijing. One of the hot topic is about China Economic slowdown. Government has been looking ways to boost the economic growth. Let’s take a look of the government’s plans to boost China economic.

The Meeting Agenda

“We must work faster to carry out supply-side structural reform to improve the quality and efficiency of the supply system, and further stimulate market vitality and the creativity of society,” said Premier Li on the annual parliamentary session.

There were a lot to be discussed, including more cuts to red tape, support for innovation and entrepreneurship, closure of redundant factories and consolidation of inactive state-owned enterprises. Beside these topics, 1 other topic was highlighted during the meeting. It was the supply side structural reform. The main purpose to include this topic was to push reformation and restoration. When talking about the supply side, China is talking about the allocation of resources such as labor, land, capital and innovation. Besides, it also aims to create a fertile and fair environment to encourage high-quality goods and services for all players.

Analysts believe that this supply structural reform, that is enriched by more structural adjustments, can ensure sustainable medium-high growth for the economy.

The Heavy Point

If you’ve heard about Chinese “Made in China 2025”, you can guess directly what the heavy point is. Innovation. Yes, innovation. China is moving forward to quality, not quantity, and by doing so, R&D, hi-tech and automation will take place to make China’s dream comes true.

The government will build first-class national science centers and technological innovation hubs. In addition, they will help to develop internationally competitive enterprises and accelerate China’s transformation into a manufacturer of advanced and quality products. It is forecasted that by the year of 2020, China’s R&D investment will account for 2.5 percent of the GDP, and the contribution of scientific and technological advances toward economic growth will rise to 60 percent.

You can consider these industries to be your next business breakthrough: robotics, intelligent equipment, drones and high-speed railways. These industries are China’s new and upcoming economic boosters. The government puts a high hope of the output of this emerging sectors to account for 15% of GDP by 2020.