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Facing slower economic growth, the Chinese government is trying to find new engines for its economic development.

Streamline the administrative approval system

Streamlining administration and delegating power to lower levels are intended to strike a balance between the government and the market, said Xu Hongcai, director of the China’s Center for International Economic Exchanges. Too much governmental interference will cramp the creativity and development of the market. Streamlining the administrative approval system is conducive to the development of small and micro business, job creation, and the development of the tertiary industry, as well as economic restructuring. Up to September this year, 632 items requiring review and approval of the State Council, China's Cabinet, have been canceled or delegated to lower-level governments.

Stimulate private investment

Private investment is playing an important role in enhancing economic growth. In recent years, China has launched new policies to encourage private investment. Private investment contributes to expanding domestic demand, promoting consumption, and driving economic development. Xu Hongcai pointed out that state-owned capital had exerted a monopoly in many areas in the past, so it was hard to tap the potential of private capital.

Deeper reform of innovation

It is necessary to stimulate innovation to promote Chinese economy development. Since 2010, China has unveiled policies to promote technological innovation in Zhongguancun National Innovation Demonstration Zone, which has yielded good results. Chinese Primer Li Keqiang has pointed out that it is necessary to stimulate innovation and achieve deeper reform of science and technology. Talent from all walks of life is working together to promote innovation, a source of vitality for the Chinese economy.

This article was edited and translated from 《中國經濟點燃三大新引擎》, source: People's Daily Overseas Edition, Author: Luo Lan

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