Leaders Aim for New Economic Roadmap

When the 18th Party Congress elected new leadership a year ago, they pledged to take new steps toward realizing the Chinese dream. On Saturday, the Third Plenary Session of the 18th Party Congress opened with the goal of creating a roadmap for reform and economic planning.

China started the process of economic restructuring last year and has achieved some preliminary targets. Data from the National Bureau of Statistics shows China's GDP growth for the third quarter of the year is 7.8 percent.

All main indexes, such as investment, consumption and exports, are going up. The latest Purchasing Managers' Index in October rose to 51.4 percent, an 18-month high, an indicator for market optimism and confidence.

The economic restructuring has also made progress.

Private investment and domestic consumption have grown at steady rates, while modern service industries are recording higher growth rates than traditional industries. The service sector's contribution to the GDP has also increased by 0.2 percentage points.

All these indices show China's economy is doing well in 2013, despite the economic slowdown globally.

In the face of sluggish international markets and excessive domestic production capacity, China's new leaders have adopted steady policies and flexible measures to ensure economic growth and stability.

The State Council's Development Research Center researcher Zhang Liqun said: "The Party has three indispensable policy objectives: stable growth, structural adjustment and reform."

The State Council has put in place a series of stabilizing policies, introducing credit funds to support the real economy; supporting agricultural, small- and micro-sized enterprises; and propelling consumption upgrades. These have all added to the vitality of the economy.

"The policies supporting small- and micro-sized enterprises are promoting market confidence," said Li Hua, an electronics entrepreneur in Shanghai. "Our sales volume is expected to grow from 30 million yuan (US$4.9 million) in the first quarter to 100 million in the third quarter."

Predictions that China's economy may suffer a "hard-landing" have been proved wrong, said Carnegie Endowment for International Peace researcher Huang Yuchuan.

The measures must accompany structural adjustment and reform to solve deeper development problems.

Like many countries, China faces the problem of surplus capacity. Its coal price has fallen by one-third, while the profit of steel production is so low that producing one ton of steel cannot earn enough for the factory to buy a can of cola.

The government is taking measures to resolve existing problems and develop long-term strategies.

Air pollution is a new challenge, with the smog blanketing cities sounding an alarm that it is time to consider economic transformation.

In response, new measures have been taken to contain the crisis. The government has issued an Airborne Pollution Prevention and Control Action Plan (2013-17), and is coordinating with heavily polluted regions like Beijing and Hebei to curb the pollution. It is also promoting more environmentally friendly sectors like the photovoltaic industry.

Meanwhile, the government is strengthening health service industries and boosting the consumption of information products and services.

"Facing heavy pressure from the economic slowdown, the government is still seeking economic restructuring and promoting reform while stabilizing the economy," said Nie Gaomin, an official from the National Development and Reform Commission, the country's top economic planning body.

"It is the biggest innovation in macroeconomic management this year."