Business / Economy

China's upgraded economy, an engine for world growth

(Xinhua) Updated: 2014-01-22 16:32

BEIJING - Despite challenges against efforts to stimulate world growth, positive results from China's economic restructuring will help accelerate recovery by offering new opportunities and momentum to global trade and investment.

The annual meetings of the World Economic Forum (WEF) at Davos starting Wednesday will take a closer look at China's financial, economic and social reforms, and debate their impact on world economy in the coming years, with a series of comprehensive sessions planned throughout the four-day event.

Noticing the drastic changes that have taken place in the width and depth of China's economic reforms since the Third Plenary Session of the 18th Central Committee of the Communist Party of China held in November 2013, participants at Davos are set to analyze how the structural changes are shaping China's future.

China's economic restructuring focuses on three aspects of strategic adjustment: the overall demand, the industrial mix and the production input.

China had relied heavily on investment and export to promote economic growth but domestic consumption has now been given a bigger role. How to strike a balance between investment and consumption is one of the topics to be discussed at Davos.

The economic model based on domestic consumption promotes stable growth, is conducive to attracting foreign investment and will be a stimulus to surrounding countries and world economy.

Expanding China's domestic demand will further release the potential of its domestic market. China is looking to import $10 trillion worth of products in the next five years, with an annual increase of 27 percent, exceeding export growth by 5 percentage points.

The rising consumption in the Chinese market will become a significant driving force for global growth. Those with attractive products and services for Chinese customers will have more opportunities in the future.

China's growth used to rely on the mining, manufacturing and power sectors, which will be replaced by a more balanced industrial structure combining the sectors as well as agriculture and service.

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