Reform and opening-up still crucial to growth

The main players of China's economy are the millions of entrepreneurs with a pioneering and innovative spirit and the hardworking workers in all walks of life. The "running water" flowing from countless micro sources converges into the "vast ocean" of the world's second-largest economy.

After decades of rapid growth, the cost of labor, land and other resource factors in China has been rising, which is higher than that of many other developing countries.

In the current context of shrinking external demand and sluggish domestic demand, China must rely on reform and opening-up to solve the problem of its development lacking endogenous power and vitality. It should deepen the reform of State-owned enterprises to enhance their core functions and core competitiveness, and accelerate the implementation of a number of measures that support private enterprises in terms of market access, acquisition of factors, and protection of rights and interests, to promote the development of the private economy.

It should steadily expand institutional openness in rules, regulations, management, and standards, and strive to create a law-based business environment. Various forms of local protection and market segmentation practices should be eliminated to facilitate the building of a unified market across the country.