For stable growth, we need to release demand potential

China's drive toward high-quality development is facing new problems and challenges, including drastic changes in the internal and external environment.

Looking back over the past 40 years of reform and opening-up therefore is not to revel in past achievements, but rather to explore how to make breakthroughs in comprehensively deepening reform and opening-up in the new stage. In this way, we will gain initiatives for international competitive cooperation and for domestic stability and development.

Since China is now entering the postindustrial period, the key to upgrading its manufacturing sector lies in improving the macro-environment for the real economy's development. To this end, the government should strengthen the legal guarantee, especially for property rights, for the private economy, the backbone of manufacturing upgrading. It should also cut institutional transaction costs to retain the competitiveness of "Made in China".