China's economy picking up steam (3)

A more sound economy

Future economic growth in China mainly depends on the soundness of the Chinese economy itself. Since 2007, China has launched a strategic campaign of economic restructuring.

Five years later, this campaign has greatly moved forward and the economy become a lot sounder.

Zhang says one change is that consumption has been a larger contributor to economic growth than investment. In the first nine months this year, the proportion of consumption to total GDP was 55 percent, while that of investment was 50.5 percent.

"Regarding economic development in the first three quarters, domestic demand made a contribution of 105.5 percent, while external demand was negative at 5.5 percent. We should place emphasis on development to expand domestic demand, which has the potential to maintain steady and fast economic growth," said Zhang.

He adds that 42 detailed rules have been formulated this year to promote private investment. Thus far, the proportion of private investment has already reached 62 percent, indicating that the private economy has achieved rapid development.

NDRC statistics also show that the structure of primary, secondary and tertiary industries is more coordinated.

"In the industrial sector, the proportion of strategic emerging industries and hi-tech industries is increasing and the transformation of traditional industries is accelerating. The proportion of tertiary industry continues to rise," said an NDRC release.

As for urban and rural development, China's urbanization rate (ratio of urban population among total population) reached 51.3 percent in 2011.

Rural infrastructure construction, basic public services, tap water supply, electricity, roads, gas and housing in rural areas, as well as farmers' production and living conditions, have all been greatly improved.

"Although there are still many problems, such as excessive production and extensive management in some industries, that need to be solved, we will enhance efforts to implement various policies and measures and quicken our pace in transforming the economic growth mode," Zhang said.

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