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Foundation for China's high-quality development takes shape

Xinhua | Updated: 2018-04-25 10:59
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A little girl runs througn windmills at a park in Liuzhou city, South China's Guangxi Zhuang autonomous region, April 4, 2018. [Photo/Xinhua]

BEIJING - The economic foundation for China's high-quality development has taken shape with steady growth in the past few quarters and positive changes in structure and sources of growth.

High-quality development, the fundamental requirement for determining China's development path and making economic policies, is off to a good start this year, said a statement released Monday after a meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee.

In the first quarter, China's economy expanded 6.8 percent year-on-year, unchanged from the previous quarter and staying within the 6.7-6.9 percent range for an 11th straight quarter, official data showed last week.

The economy has maintained steady growth with a sound momentum in Q1, as major indicators pointed to stronger domestic demand and good coordination between the industrial and service sectors, the statement said, adding that economic restructuring has played a larger role in sustaining growth.

"The platform for medium-high economic growth in China has come into being, and what's more valuable is the economic foundation that meets the requirement of high-quality development has been established," said Zhang Liqun, researcher with the State Council's Development Research Center.

In the first quarter, services accounted for 56.6 percent of the economy and contributed 61.6 percent of its growth, and final consumption contributed 77.8 percent of growth, up from 58.8 percent last year, official data showed.

Meanwhile, new businesses and industries continued to grow fast, and the industrial sector steadily upgraded toward medium- and high-end production.

The changes were the results of China's bid to seek high-quality development rather than growth relying heavily on inefficient investment, low-end exports and polluting factories.

To maintain sound growth momentum, work must be continued to steer the economy onto the path of growth with "high gold content" partly by continuing with the restructuring and creating new sources of growth, Zhang said.

Policymakers have highlighted the role of high-quality development in the arduous task of delivering China's annual development goals, calling for quicker introduction of guidance for local governments and departments to follow in promoting high-quality development.

"High-quality development has been widely accepted as a guiding principle, but its connotation and the path toward it still needs to be explored," said Wang Jun, chief economist at Zhongyuan Bank.

The central government has vowed to speed up the release of indicators, policies, standards, statistical systems and performance evaluations, while local governments are encouraged to explore ways to pursue high-quality development that fit their local conditions.

Those indicators and standards will make it easier to formulate concrete measures and facilitate the implementation of high-quality development, Wang said.

China will also push ahead with supply-side structural reform, taking measures to cut overcapacity, develop core technology, streamline administration and lower corporate costs, the statement said.

Strengthening supply-side structural reform will clear obstacles to high-quality development, Zhang said.

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