Part Old,Part New.docVIP

Part Old,Part New 　　A hybrid engine began to drive Chinas economy in 2015. The conventional part， fueled by labor， land and capital， is losing steam； the new part， fueled by innovation and entrepreneurship， is developing. This has infused Chinas economic future with great uncertainty. In the past few months， Chinas central government has established a two-pronged strategy based on both aspects of this engine. While boosting demand to stabilize the former， the country is accelerating structural reform to provide consumers with better goods and services in order to power the latter. 　　However， the trick is that the efforts of one side may at times offset the effects of the other. According to a statement made after the Communist Party of China Central Committees annual meeting on economic affairs at the end of December， five tasks are on the to-do list to improve supply： eliminating industrial overcapacity， reducing excessive inventories （mainly housing）， cutting the debt ratio， easing corporate operational burdens and fortifying weak foundations wherever they may be. The first task may mean shutting down factories， which would dampen demand rather than boost it. 　　Is it possible for China to dump its overcapacity and at the same time keep growth stable？ How can the seeds of new dynamics be cultivated？ 　　Wang Yiming， deputy director of the Development Research Center of the State Council， gives his answers to these questions in an exclusive interview with NewsChina. 　　NewsChina： What is your view on Chinas economic situation in 2016？ 　　Wang Yiming： I think Chinas economy will experience a steady slowdown in 2016 until it reaches a turning point， when it will begin to pick up again. 　　If we look at the demand-side troika： exports will continue to grow slightly， with some fluctuations， and consumption growth will remain steady. It is investment that will be the key variable of the three and define the demand matrix. 　　Investments in both real estate and manufactu