"The New Normal" of Chinese Economic Development

Since the 18th CPC National Congress, the Party Central Committee has made a comprehensive analysis of the world economic growth cycle and the staged characteristics of China’s economic development and their major strategic judgments. The new concept was first proposed by Xi Jinping during his investigation in Henan in May 2014. Xi Jinping pointed out that China’s development is still in a period of important strategic opportunities. We must strengthen our confidence, proceed from the current stage characteristics of China’s economic development, adapt to the new normal, and maintain a strategic mentality. In November of the same year, Xi Jinping made a systematic exposition of the “new normal” at the APEC Business Leaders’ Summit, and stated that the “new normal” of economic development has three main characteristics: from high-speed growth to medium-to-high speed growth; continuously optimized and upgraded economic structure; from factor-driven, investment-driven to innovation-driven.

This is a special reference to the state of China’s economic development and a sober judgment of the economic development situation. Under the “new normal”, through reforms and adjustments in China, the actual economic growth is still considerable, the growth momentum is more diversified, the development prospects are more stable, and the market vitality will be further released. In December 2014, the Central Economic Work Conference reviewed consumer demand, investment demand, exports and balance of payments, production capacity and industrial organization ways, relative advantages of production factors, market competition characteristics, resource and environmental constraints, economic risk accumulation and resolution, and resource allocation model and macro-control methods, and made a detailed analysis of the performance, causes and development direction of the “new normal” of the Chinese economy. The entry of China’s economic development into a new normal is an inevitable reflection of the staged characteristics of China’s economic development, and it is independent of human will. Understanding the new normal, adapting to the new normal, and leading the new normal are the direction of China's economic development at present and in the future. To adapt to and lead the new normal of economic development, it is necessary to transform the mode of economic development, and realize the transformation of development concept reform, model transformation, and the comprehensive, systematic, and strategic path innovation. We must adhere to the new industrialization, informatization, urbanization, and agriculture modernization with Chinese characteristics, promoting the development of the “above four things simultaneously”. We must adhere to the path of independent innovation with Chinese characteristics, implement innovation-driven development strategies, and fully rely on innovation to drive development to improve economic quality and efficiency. We must improve the integration of urban and rural development systems and mechanisms to coordinate urban and rural development and too narrow the gap between urban and rural areas.