China to Target Medium to High Economic Growth in the Coming Years
China continues to target medium to high economic growth in the coming five year from 2016. Officials and government leaders decided that China will aim to double its GDP and per capita income of urban and rural residents by 2020 and ensure a more balanced, inclusive and sustainable development. China will also be promoting modernization in the industrial sector and wil raise he contribution of consumers to economic growth as urbanization ratio will be calculated based on the number of registered residents.
Innovation is the driving force of development in China for the next five years and it will be promoted through science, culture and technology. The government will also encourage a system that will nurture innovation and will be given better allocation of resources from labor, land, technology, management and capital. Mass entrepreneurship will also be pushed in hopes that it will lead to new technology. To respond to the new normal of the plateauing economy, the central government will released a series of measures for emerging businesses this will include supporting infrastructure, administrative assistance and financial support.
From January until September, there were 3.16 million new companies established in China an increase of 19 percent compared to a year ago. This is according to the latest data from the State Administration for Industry and Commerce. By doing this China hopes to attract more foreign investors by released clarified rules that will apply to them. Leaders have decided on a nationwide adoption of negative list model that will clearly states sectors and businesses that will be off limits to foreign investments. This will help ensure the protection of foreign investors rights and better allocate funds. Experts also suggested that the service sector should be opened up further to foreign investment and systems by promoting and improving service trade.
China will keep promoting the New Silk Road Initiative as they enhance cooperation with counties and regions that are found along the route and to participate in global industrial and equipment manufacturing cooperation as well. Recognizing the huge growth potential of the service sector, China took the necessary steps in accelerating the development, liberalizing finance, culture education and medical treatment sectors.