'New Keqiang index' highlights income level and environment

It looks as if the "new Keqiang index," added with the three indicators, is not so new, but it contains Li Keqiang's innovative spirit, his thoughts and feelings about the people's livelihood, and his economic strategy. For example, employment cannot be sustainable once imbalance occurs between supply and demand or when there are excess production capacities. According to Li's ideas, employment should be linked with entrepreneurship, and entrepreneurship should be linked with innovation. Significantly, the urge to "encourage the people to do business creatively and drive innovation" under the guidance of the strategy of "Internet plus" is rebuilding China's economic image.

The development of new industries and the transforming and upgrading of traditional industries has eliminated some old jobs. At the same time, it has created many new jobs. Such an economic ecological chain will bring job opportunities endlessly. Over the past few years, Internet businesses have greatly developed in China. The State Council has recently issued a document to promote the development of rural e-commerce, which will undoubtedly produce an impact on the traditional retail industry. However, the development of new industries has created new jobs, and at the same time, it has made life easy for people and stimulated consumption.

Consumption and residents' income are closely related. In the "new Keqiang index," the improvement of residents' income is not only an important part of comprehensively building a moderately prosperous society, but also an important force driving economic growth. Li Keqiang said in his article, "Consumption, already responsible for 60 percent of growth, keeps going strong and up-market. Take outbound tourism for example: Chinese citizens made over 100 million trips overseas in 2014, and the first half of 2015 saw year-on-year growth of 10 percent. In short, despite moderation in growth, the Chinese economy is moving in the desired direction of stronger domestic demand and innovation."

As for the improvement of the ecological environment, strong administrative law enforcement and supervision are essential. Reduction of energy consumption per unit of GDP will become an index of assessment. However, they are relatively passive methods. To regain the initiative, economic means are the clear choice. In June 2013, the State Council issued the Action Plan for Air Pollution Prevention and Control (known as "Atmospheric Ten"), the guide for national air pollution prevention and control in the future, during which an estimated 1.7 trillion yuan (US$266.1 billion) will be invested by the government within the next five years. In April 2015, the State Council unveiled the Action Plan for Water Pollution Prevention and Control (known as "Water Ten"), in which an estimated 2 trillion yuan (US$313 billion) will be invested by the government. It is reported that at the end of this year or by early next year, the "Soil Ten" Plan is expected to be issued, in which an estimated 5.7 trillion yuan (US$892.1 billion) will be invested by the government.

A total of nearly 10 trillion yuan (US$1.56 trillion) are needed for air, water and soil pollution prevention and control. Some of these investments will create GDP, but some will probably not. However, they will create new jobs, raise the income level of residents, and improve the quality of people's lives. More importantly, it will turn the vision of a "beautiful China" into a reality. This is the most important message which the "new Keqiang index" has sent to the world.