From extensive to intensive growth

A recent report published by the China Enterprise Confederation indicates that China's top 500 enterprises witnessed a year-on-year decline in their total business revenue of 0.07 percent in the previous months of this year, the first decline since the report was launched 15 years ago.

In the context of the global economic downturn, such a slight decline in business revenue is normal and should not be misinterpreted. China's economy has managed to maintain relatively fast growth in the past few years when many other countries have encountered economic difficulties, but its ever-expanding economic size also makes it increasingly difficult for China to sustain its previous fast economic momentum.

Also the excessive priority China put on economic growth in the previous decades at the expense of quality has exacerbated its inherent economic problems. Therefore, China has had no option but to bid farewell to its breakneck economic pace and seek to shift to a more optimized economic structure and better-coordinated supply-demand relations.