China's new normal
China's "New Normal" (, xīn bù zhùn) is a term used to describe the country's economic and social development trajectory since the 2008 global financial crisis. The concept was first introduced by Chinese Premier Li Keqiang in 2013, and it refers to a new era of sustainable and balanced economic growth, characterized by:
- Moderate growth: China's economic growth rate has slowed down from its double-digit pace in the past to a more sustainable rate of around 6-7% per annum.
- Structural adjustments: The Chinese economy is undergoing significant structural changes, including the shift from an investment-driven to a consumption-driven economy, and from a manufacturing-based to a service-based economy.
- Increased focus on innovation: China is placing greater emphasis on innovation, entrepreneurship, and technological advancements to drive growth and competitiveness.
- Environmental and social sustainability: The government is prioritizing environmental protection, social welfare, and public health, recognizing the importance of sustainable development and the need to balance economic growth with social and environmental concerns.
- Regional development: China is promoting regional development and urbanization, with a focus on building more balanced and sustainable economic growth across different regions.
Key features of China's New Normal include:
- Debt reduction: China has been working to reduce its debt levels, particularly in the corporate sector, to prevent financial risks and maintain economic stability.
- Financial sector reforms: The government has been implementing reforms to improve the efficiency and stability of the financial sector, including the development of a more robust and transparent banking system.
- Industrial upgrading: China is promoting the development of high-tech industries, such as artificial intelligence, biotechnology, and renewable energy, to drive innovation and competitiveness.
- Urbanization and urban renewal: The government is investing in urban renewal projects, including the development of public transportation systems, green spaces, and cultural facilities, to improve the quality of life for urban residents.
- Social welfare and healthcare: China is expanding its social welfare and healthcare systems, including the development of a more comprehensive social security network and improved access to healthcare services.
Overall, China's New Normal represents a significant shift in the country's economic and social development trajectory, with a focus on sustainable growth, innovation, and social welfare.