Shift in focus to attain quality growth

Shifting toward "quality growth" is now at the top of the country's policy agenda. Governments at all levels nationwide now have a quiet but resolute commitment to fostering a new growth model that corrects the distortions created by decades of double-digit growth - including corruption, pollution, rising inequality and other structural imbalances.

Over most of the last 40 years, China focused on rapid land-based development, driven by local initiatives aimed at attracting infrastructure investment, human resources and tax revenues. The creation of special economic zones, industrial parks, and free-trade zones facilitated such development, as they benefited from the large pool of cheap labor migrating from rural areas.

Throughout this process, China used GDP growth as its main measure of success. This enabled the establishment of well-defined goals and incentives for local officials as they competed with one another. But it also caused serious problems - such as environmental damage, inequality, excessive debts, overcapacity and corruption.