China will gradually move away from real estate, infrastructure and export as main drivers of economic growth to new areas, said a noted Chinese economist at the recent forum held by newspaper Economic Observer.
Liu Shijin, chief adviser of the China Council for International Cooperation on Environment and Development, named five new drivers: improving government efficiency, income and human capital growth among low-income population, improved consumption and industrial structure upgrading, technological innovation and green development.
Government departments with lower efficiency, such as energy, logistics, and financing, are because of administrative monopolies and lack of competition, Liu explained. As this wastes resources and does little for economic growth, Liu suggested the State revamp under-performing departments by introducing new systems to increase the competitiveness.
Economic growth is linked with increased income, which boosts consumption, Liu said. And as Chinese consumers spend more on services such as health, education, culture and tourism, consumption and industrial structure will need increased upgrading to meet demand.
Green industries will develop in areas such as consumption, production, logistics and financing to form a full industrial chain, Liu said.
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