In the first three quarters, China's final consumption expenditures — the sum of household and government consumption expenditures — accounted for about 55 percent of its gross domestic product, indicating for the first time in 10 years that the contribution of consumption surpassed that of the investment.
China's residential consumption demand, which was 16 trillion yuan ($2.56 trillion) in 2011, is expected to climb to about 30 trillion yuan in 2016 and up to 50 trillion yuan by 2022, Chi said, adding household consumption is going to account for about 50 percent of GDP by then, and the final consumption is going to represent about 60 percent of that, forming a consumption-dominated economic growth pattern.
"Maintaining reasonable investment is suitable for China's conditions, but the focus of investment should be switched to public sectors such as education, medical care and social security," Chi said.
Zhang Yansheng, secretary-general of the Academic Council of the National Development and Reform Commission, called the year 2012 a "turning point" for China as it seeks to change its long-term unbalanced development strategy.
He noted a number of challenges facing the Chinese economy, such as declining exports, the reluctance of enterprises to make investments, and overcapacity in some sectors.
Growth of the eastern coastal areas, which used to be the driver of China's economic growth, has faced a slowdown affected by weak external demand and industry migration, but the new model for future growth remains unclear, he said.
Landmark building should respect the public's feeling
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