Towards a Comprehensive Understanding of New Normal

At the recently-concluded 2014 Central Economic Work Conference， an annual economic meeting attended by top leaders， China made thorough deployments for economic works in 2015， in accordance with the general tone of seeking progress while maintaining stability， which will help get a better understanding of the new normal of the economic development and point out the direction for a sustainable and healthy economic development.

Over the course of the year 2014， realizing that the countrys economic development was moving into the new normal， the Chinese central government has launched a slew of major matures in a bid to stabilize the growth， foster new growth engines， and deepen the reform and opening-up.

Those efforts have been paying off. In the first three quarters of 2014， the countrys gross domestic product （GDP） grew by 7.4% from the same period a year earlier. Though the growth rate slowed down， the actual GDP increment was still considerable.

More importantly， Chinas economy is moving into a more advanced phase featured with a more complex division of labor and a more reasonable structure， thanks to positive changes in structural adjustment， strong growth momentum in the service sector， and ever-expanding domestic demand.

2015 is the last year of the “Twelfth Five-year Plan”period and the crucial year for the country to comprehensively deepen the reform， as well as the first year to comprehensively promote the rule of law.

Therefore， China needs to stick to the general tone of seeking progress while maintaining stability， maintain the balance between stable growth and structural adjustment， and actively adapt to the new normal of the economic development， in a bid to deepen the reform and opening up， create a stable macroeconomic environment for the economic restructuring and provide new engines for the economic and social development.

An accurate， in-depth and comprehensive understanding of new trends， new features and new impetus under the new normal is an important prerequisite for the economic work in the future. The new normal means that things are different and there has been or will have a lot of significant changes in the conditions and the environment of the economic development in China.

Chinas economy has shifted gear from the previous high speed to a medium-to-high-speed growth. However， the new normal not only features a few percentage points off the countrys GDP growth rate， but also brings a shift in growth engine and an improvement in development quality.

China is steering away from the traditional unbalanced， uncoordinated and unsustainable extensive growth mode， and the economy is increasingly driven by innovation instead of resources and investment.

The key to effectively cope with challenges and adapt to the new normal lies in unremitting efforts to deepen the reform and opening up and adjust the structure. Therefore， the Chinese government needs to abandon the inappropriate inertial thinking， break the rules and practices that block the development of the economy， put major economic reform measures in place， and roll out more high-quality reforms.

Besides， China should step up efforts to inspire various entrepreneurs and talents to innovate， and foster new engines for the economic growth in a bid to push the countrys economy to a higher level and achieve new breakthroughs under the new normal.