Economic Paradigm Shift Underway.docVIP

Economic Paradigm Shift Underway 　　The growth rate of China’s economy in 2016 took the lead in the world once again. The 6.7-percent growth not only indicates China’s supply-side reform has been effective， but also bodes well for the global economy. 　　The sound performance is attributable to the macroeconomic policy adopted by the Central Government. China implemented supply-side structural reform in 2016 with a focus on five tasks： cutting excess industrial capacity， downsizing housing inventory， reducing leverage， lowering corporate costs and improving weak economic links. The reform has spurred economic vitality and reduced factors hindering healthy economic growth. 　　China’s economic structure has been optimized， its development model is being transformed and new growth drivers have been developed. The service sector accounted for nearly two thirds of the nation’s economic growth， and hi-tech industries also expanded rapidly. Energy consumption per unit of GDP declined by 5 percent in 2016， while clean energy made up a higher proportion of the energy mix. 　　The year 2016 marked the beginning of the government’s 13th Five-Year Plan， which lays out social and economic development objectives for 2016 to 2020. The bottoming out of the economy in 2016 marked a good start for the period. 　　It also presents a powerful counterargument to theories about China’s economy collapsing and bolsters confidence in sustainable global growth. Against the backdrop of its stable and improved domestic economy， China will bring more development opportunities to other countries. The China-proposed Silk Road Economic Belt and 21st-Century Maritime Silk Road Initiative， for instance， is gaining traction as it helps promote connectivity and prosperity around the world. 　　However， it should also be noted that the foundation for steady growth is not solid enough amid the complex domestic and international economic environment. The Chinese Government should continue to prevent poss