The Political Bureau of the Central Committee of the CPC held a meeting on April 28th this year, and pointed out that the current improvement in China's economic situation is mainly restorative, with weak endogenous power and insufficient demand. Economic transformation and upgrading face new obstacles, so it is still difficult to promote high-quality development.
China implemented the export-oriented industrialization strategy in the past, and joined the global value chain from the low-end manufacturing, which led to the extensive development of China's industrial system and the unbalanced industrial structure. Specifically, the traditional industrial system dominates, which mainly belongs to labor-intensive or capital-intensive industries, with slow technological improvement, low added value, high labor costs, heavy pollution, and high energy consumption.
Nowadays, China has entered the stage of high-quality development. With the decline of the growth power of the traditional industrial system, we have reached a critical moment when it is necessary to change the development engine.
One of the important tasks for economic growth at present and in the future is to strengthen the endogenous power and reliability of the domestic circulation. In order to effectively complete the task, it's necessary to target the modern industrial system and accelerate the upgrading of the domestic industrial system. The modern industrial system is the new engine of China's endogenous economic growth, as well as the decisive force in determining whether China can win strategic initiative in the future development and international competition.
