Some truths about economy

China is undergoing an urbanization and industrialization phase that is marked by fast economic growth and rising energy demand. Compared with the development process of developed countries, China's economic development problems such as high energy consumption, high emission, fast GDP growth, heavy industry-oriented economic structure and low energy efficiency may appear out of place. But actually they are in line with its present stage of economic development. History shows a fast growing economy is usually extensive and cannot be efficient on all fronts.

People often understand economic transformation as economic restructuring. They thus place high expectation on the role of economic restructuring in energy conservation and emission reduction, and expect a country to focus nearly all its strategic planning on it. Theoretically, it cannot be disputed that changing the existing economic structure could lower energy consumption per capita GDP. But the economic structure of a country is highly related to its stage of development. So we should be prudent while stressing economic restructuring in China.

China's economic restructuring process cannot be changed according to the wishes of either the government or individuals for two reasons.