"The country has to change its economic model so domestic consumption becomes self-generating," said Lee.
National Bureau of Statistics data show that from 2002, investment's contribution to GDP has continually outpaced that of consumption. But the share of consumption within GDP has grown faster in recent years, increasing by 10.1 percentage points to 51.6 percent in 2011.
In the first three quarters, consumption increased its share of GDP to 55 percent, meaning for the first time in a decade, its contribution is more than investment.
"China needs to reduce its reliance on investment, because the high historical levels have become increasingly difficult for local governments to sustain," Lee added.
State-owned enterprises and local financing vehicles under the control of local governments have accounted for too high a proportion of Chinese investment in recent years. However, Lee said that if investment is cut too quickly, "that too will damage the economy".
During his speech at the 18th National Congress of the Communist Party of China, President Hu Jintao said: "China should firmly maintain the strategic focus of boosting domestic demand, speed up the establishment of a long-term mechanism for increasing consumer demand, unleash the potential of individual consumption, and increase investment at a proper pace, and expand the domestic market."
Lee said three major economic issues exist for China: What should be the country's sustainable level of investment? How can China finance the level of investment in a more sustainable way? And to what extent should the type of investment change to make consumption become more self-generating?
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