In a speech on 9 November to CEO's at the APEC Summit in Beijing, President Xi expounded on what he meant in his recent references to the "New Normal" in China's development trajectory.
This new connect can be characterized into the following COMPONENTS -
(a) permanent change from high-speed to moderately high-speed economic growth;
(b) continuous economic re-structuring -
- services and consumer demand to gradually become the mainstay of the economy;
- continous narrowing of regional differences;
- economnic proportion of household incomes to continue rising;
- greater sharing of fruits of economic development amongst the masses.
(c) change from investment-driven to innovation-driven.
The following BUSINESS OPPORTUNITIES are likely to result -
(a) Even at around 7% average annual growth, China's economy will still be leading world growth;
(b) Growth will be more balanced, stable and multi-dimenisonal with new "Four Modernizations" - New industrialization, Digitization, Urbanization, and Agricultural modernization and greater reliance on domestic consumption to minimize exposure to external risks;
(c) Economic re-structuring already manifested in the first three quarters of 2014
- consumption overtaking investment as main contributor to GDP growth;
- share of services at 46.7% overtaking manufacturing;
- high and new technologies, including machinery manufacturing registered higher rates of growth compared with industrial averages; and
- government streamling and de-regulation have resulted in greater market vitality with newly-registered enterprises growing at 60% compared with previous year.
The country must CONTINUE TO ADAPT to the "New Normal" in the following way -
(a) clear-mindedness on new contradictions and surfacing nof hidden risks;
(b) intensifying of overall reform deepening -
- to energize latent market vitality;
- to widen paths for innovation;
- to push forward high-quality outward openness;
- to promote people's well-being, including equality and social justice.
A diagramitc illustration (in Chinese) is provided in the following extract dated 10 November, 2014, from the "100 Plan Organization", a state-sponsored organization to attract global talents. Click here