A China Review News article on October 24, 2010, reports that China’s Twelfth Five-Year Plan focuses on “transitioning.” It describes China’s current economy as having an imbalance between domestic and foreign demand, and expects this imbalance to reverse, that is, for domestic demand to rise, accompanied by a fall in foreign demand. The Plan targets a change from an economy featuring low-cost manufacturing to one with high value-added production.
The article lists five potential changes for the coming five years: 1. Economic growth decelerates and local government’s “GDP fever” pursuit cools down, as the eight percent GDP growth rate is no longer Beijing’s highest priority. 2. The domestic market is to expand, especially in the luxury goods and culture-related industries. 3. Rural areas are to see major development. 4. Economic prosperity is to shift from export-oriented coastal provinces to the central and the western provinces. 5. China is to develop new energy and “green” energy.
Source: China Review News, October 24, 2010