China Switches to New Ways of Economic Growth

The National People's Congress concludes this morning in Beijing. During the 10-day session, the country's economic growth model has been one of the hottest topics.

He Fei has more.

The 12th five-year plan, presented to the National People's Congress, is giving a priority to the development of emerging industries, including bio-technology, new materials and new energy.

The IT sector has also been made a priority, given that it's relatively pollution free and doesn't consume much energy.
Wang Wenjing is NPC deputy and the president of UFIDA Software, one of China's largest software developers. He says he believes his company and the industry as a whole is headed for the fast lane, given the country's new economic blueprint.

"It's really a privilege for the IT industry to be listed as one of China's key sectors for development. I think the new strategy reflects the world's economic dynamics in recent years and comes as a big encouragement for us. Now it's our turn to make the most of this opportunity."

The Chinese economy has long been dependent on export and investment.

But given the world's economic downturn and the shortage of energy and environmental deterioration in this country, the central authorities are now trying to maintain the world's second largest economy through domestic consumption.

Zhang Ping is the chair of the National Development and Reform Commission, the country's top economic planning body.

"To revamp the economic development mode, we need to adjust the demand structure. And enlarging the domestic consumption will be the very solution. So in the 12th five year plan, we highlight the importance of long-term consumer demand."

James Turley, Chair and CEO of Ernst and Young, says he welcomes the new economic model.

"The transformation in China from a more heavily exported economy to both a balanced domestic and exported economy is very important. I think the leaders of China are doing the right things to encourage that."

Turley contends that stronger domestic demand and less-polluting production will have a positive impact on the rest of the world when it comes to balancing trade and reducing pollution, even though he says he thinks the transformation itself will take time and money.

For CRI, I'm He Fei.