After more than three decades of average annual growth close to 10
percent, China's economy is transitioning to a "new normal" of
slower but more balanced and sustainable growth. Its old drivers of
growth - a growing labour force, the migration from rural areas to
cities, high levels of investments, and expanding exports - are
waning or having less impact. China's policy makers are well aware
that the country needs new drivers of growth. Innovative China
proposes a reform agenda that emphasizes productivity and
innovation to help policy makers promote China's future growth and
achieve their vision of a modern and innovative China. The reform
agenda is based on the three Ds: Removing Distortions to strengthen
market competition and enhance the efficient allocation of
resources in the economy Accelerating Diffusion of advanced
technologies and management practices in China's economy, taking
advantage of the large remaining potential for catch-up growth
Fostering Discovery and nurturing China's competitive and
innovative capacity as China approaches OECD incomes in the decades
ahead and extends the global innovation and technology frontier.
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