Changing the Mode of Economic Development

In December 2007, the 17th CPC National Congress put forward the urgent and important strategic tasks related to the overall picture of the national economy. It is a major strategic idea based on the objective reality of our country's development and is the correct direction that must be adhered to in order to promote our country's economic and social development. We are required to take comprehensive measures to accelerate the formation and implementation of the Scientific Outlook on Development, and achieve a development mode consistent with the comprehensive, coordinated and sustainable economic and social development. In February 2010, Hu Jintao pointed out in the “Speech at the Seminar on Deeply Implementing the Scientific Outlook on Development and Accelerating the Transformation of Economic Development Modes for Major Leading Cadres at Provincial and Ministerial Levels”, “Only by accelerating the transformation of economic development mode, can me keep the solemn promise made to the people of all ethnic groups in the country to better meet the growing material and cultural needs of the people.” Accelerate the transformation of the economic development mode, the intention and purpose of which is to realize, maintain and develop the fundamental interests of the overwhelming majority of the people. People-oriented is the core idea that must be adhered to in the transformation of the economic development mode. The transformation of the economic development mode is an important goal and strategic measure for the in-depth implementation of the Scientific Outlook on Development, and it is also a major and urgent realistic subject, with which our country’s economic and social development are faced. The transformation of economic development mode involves not only the reform and innovation of institutional mechanisms and policy measures, but also the renewal and adjustment of ideological concepts and mental states.

The Fifth Plenary Session of the 14th Central Committee of the Party established that the second policy that must be adhered to in economic and social development is to actively promote the transformation of economic growth mode.The 17th CPC National Congress changed “transformation of economic growth mode” to “transformation of economic development mode”.The economic growth mode refers to the methods and modes of obtaining economic growth through different element inputs and technology combinations, whose emphasis is mainly on improving the efficiency of economic growth. In addition to the former meaning, the economic development mode also has higher requirements for economic development ideas, strategies and approaches, emphasizing not only the improvement of economic growth efficiency, but also the promotion of economic structure optimization, the coordination of economic growth and resources and the environment, and the rational distribution of development fruits. “Two Persistences” and “Three Transformations” are required in the transformation of the economic development mode. “Two Persistences” are to adhere to the new path of industrialization with Chinese characteristics, and adhere to the policy of expanding domestic demand, especially consumer demand. “Three Transformations” are to promote economic growth from mainly relying on investment and exports to relying on the coordinated driving of consumption, investment and exports, from relying mainly on the secondary industry to rely on the synergy of the primary, secondary and tertiary industries to drive the transformation and from relying mainly on increasing material resource consumption to mainly relying on technological progress, improvement of labor quality and management innovation. Accelerate the adjustment of the economic structure, take the adjustment of the economic structure as the strategic focus of the transformation of the economic development mode, and accelerate the adjustment of the national income distribution structure and the adjustment of the urban-rural structure in accordance with the direction and basic requirements of optimizing the demand structure, supply structure, and factor input structure, the purpose of which is to resolve the contradictions and problems accumulated in the past, and to create conditions for the economy to continue to reach a new level and maintain stable and rapid development for a long time.

The 19th CPC National Congress upgraded the term “transformation of economic development mode” to “transformation of development mode”, which is more macro, comprehensive, and systematic, and emphasizes overall development. It reflects that China's development has entered a new era and is facing new tasks and development requirements, highlighting the characteristics of the new era.