By Wang Wen and Jia Jinjing Source: China.org.cn Published: 2015-11-2
At the end of 2014, China`s GDP had reached 63.6 trillion yuan (US$10 trillion) with an average growth rate of 8 percent, and an overall increase of 55 percent from 2010. Although the Chinese economy has been slowing down somewhat, the goal of doubling the 2010 GDP in 2020 will definitely be realized.
However, doubling per capita income of urban and rural residents will face more difficulties. Per capita income of urban residents climbed from 36,539 yuan (US$5747.58) in 2010 to 56,339 yuan (US$8862.12) in 2014, up 54 percent. From 2005, the pensions of urban residents increased an average 10 percent year-on-year.
Besides wages, the investment and property income of urban residents has also increased. Thus, doubling the per capita income of rural residents will become a major task in the coming five years, and this calls for agricultural modernization, urbanization and land reform.
To double the per capita income of both urban and rural residents, we should rely heavily on innovation. In the next five years, China will carry out a innovative development strategy to promote technology, industry, enterprise, market, products, and management.
Coordinated development of industrialization, informatization, urbanization and agricultural modernization will help to solve the problem of imbalance in regional development in the long term. Under the 13th Five-Year Plan, regional development will focus on three aspects: firstly, promoting the "Belt and Road" initiative, the Yangtze River Economic Belt, and the Beijing-Tianjin-Hebei regional development areas; secondly, establishing regional city clusters and planning trans-province integration; and thirdly, constructing regional economic zones.
In the next five years, China will deepen its reform and opening up, and upgrade its international competitiveness. In the following decade, outward direct investment will reach some US$1.5 trillion, turning China into a major capital exporting country from a capital importing one.
The "Made in China" strategy will focus on innovation and the value chain, with a transformation from global sales to global operation. With more and more Chinese enterprises "going out," the Chinese yuan will be used more conveniently in foreign countries. China also will actively participate in global financial governance, while the Asian Infrastructure Investment Bank (AIIB), BRICS Development Bank, and Silk Road infrastructure fund will begin operating soon.
In addition, China will more actively take part in global ecological cooperation, so as to make more contribution to the future of "community of human destiny."
Wang Wen is Executive Dean of the Chongyang Institute for Financial Studies, Renmin University of China.
Jia Jinjing is Director of Macroeconomic Research Department, Chongyang Institute for Financial Studies, Renmin University of China.