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Sun Yinhuan: Three new powers at least will usher China’s economic growth in the future
2015-09-09 21:22:31

Annual Meeting of Summer Davos, 2015 Dalian is on the theme of “Depicting a new blueprint of growth”. So, which new powers and new growth points will China’s economic growth witness underthe normal state? On 9th September, Sun Yinhuan, a meeting participant, member of the Standing Committee of Chinese People's Political Consultative Conference, Vice chairman of the National Federation of industry and Commerce and Chairman of the board of directors of  Yida Group,  said that China’s economic growth points should be embodied in the new technology, new pattern, new mechanism and new business mode, aiming to make great efforts to enhance the factor productivity. He believed that in the future China’s economic growth will be ushered by at least three new powers: urbanization, reform and innovation, and new consumption.

Sun Yinhuan: Three new powers at least will usher China’s economic growth in the future.

Sun Yinhuan shows that the first power is urbanization. The urbanization functions as the internal power to promote economic development and will contribute to tapping the potential of domestic demand. The urbanization in China is the largest urbanization  in the human history and the the urbanization of high quality will lead to a series of growth points and release huge consumption demand. On the one hand, the development of the urban agglomerations promoted by urbanization will generate the urban infrastructure construction and promote the development of the industry and manufacturing. On the other hand, new consumption market has come into being after the population has transferred to cities, which will directly generate the development of the manufacturing and service industry, and help Chinese economy to step onto  an intensive, energy-saving and ecological road. 

The second power is reform and innovation. He holds that with the continuous deepening of economic reform in China, it has become an irrevocable trend to transform the previous low-end industry and the early scale expansion will be transformed to quality-promotion-dominated one, which will surely create new growth points. Nowadays, the notion of “public entrepreneurship, mass innovation” has been advocated. During the process of entrepreneurship and innovation, the innovative practice of industrialization will help to cultivate and form new growth points of high quality and promote the prosperity of the new emerging industries.

The third power is new consumption. Sun Yinhuan revealed that according to the relevant data, China’s final consumption rate accounted for 36.1% of the GDP in 2008 and it rose to 51% last year, which shows that China has stepped into “consumption society” and China’s economy of next phase will be predominated by consumption. At present, people become enthusiastic about pursuing the life of high quality as follows: pursuing various kinds of information consumption, green food consumption, home improvement consumption of low carbon and environment-protection and colorful consumption of culture and entertainment, sports and health. Those new consumption demands will create new consumption markets, usher the development of new industries and new businesses and function as new powers to stimulate economic growth. Meanwhile, the development of mobile Internet has been deeply changing people’s consumption habits and consumption demands and will breed a large number of enterprises of innovation and entrepreneurship, thus promoting the overall development of the service industry.

So,faced with the current macro-economic background and industrial conditions, what should enterprises do to transform successfully so as to adapt to the new trend ?

Sun Yinhuan has revealed that in the past years, our economy has developed so fast that the enterprises lack of endurance and initiative on innovation. However, recently China’s economy is undergoing comprehensive transformation l and much effort has been made to implement adjustment. It’s necessary for enterprises to take this opportunity to calm down think and practice in an innovative way, optimize structure and lay a solid foundation to improve inner capacity. He thinks that in order to transform successfully, enterprises are required to rely on such factors as information, knowledge, technology as well as innovation to gain comparative advantages and core competitiveness and achieve sustainable development, which suit all enterprises.