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By Li Wei, Development Research Center of the State Council

China's economic development has entered the stage of new normal, bringing both challenges and opportunities. As long as we can unleash new energy and develop new impetus by keeping sober-headed and following the laws of economic development, taking initiatives in our own hands, and building a mechanism that matches second-mover advantages in the new period, China's economy is bound to maintain a moderate and high rate of growth and reach a medium-high level of performance. For this purpose, we need to make efforts in the following aspects. First, we should deepen reform to unleash the internal energy of economic development. Since China has stepped into a new phase of economic development where it is faced with changing conditions and circumstances for economic growth at home and abroad, more efforts are needed to bring into play the pulling effects resulting from structural reform and to accelerate the cultivation of new impetus and formation of new development patterns. Second, we need to develop new impetus for economic growth through innovation. The key for China's economy to maintaining good performance on a new growth platform and achieving new balances between quantity and quality and between speed and benefit lies in making innovation a major force for driving economic growth and transforming growth patterns. Third, we must cultivate new competitive edges by expanding opening-up. In a period of high economic growth, China should encourage export and combine factors of production at home with advanced technology and funding abroad, thus propelling economic and social development. In addition, the promotion of urbanization and balanced development among regions would also give new impetus to economic growth. As urbanization possesses huge demand potentials and driving forces for development, the process of coordinating development among regions is also one of optimizing the allocation of factors of production across regions as well as raising productivity.