China continues its 2012 economic development momentum in 2013 and is expected to have an increase of 7.6% in economic growth and 2.5% rise in CPI this year. It will continue to face the pressure from structural slowdown and many challenges in 2014. Only through stabilizing fiscal and financial structures to gradually release accumulated risks could economic structural adjustment be smoothly achieved. Therefore, the year of 2014 will be another year for economic structural adjustment, reform promotion, steady growth achievement and risk control and management. The long term economic growth between 2014 and 2018 will undergo a transformation from structural acceleration in the stage of industrialization to structural deceleration in the stage of urbanization. Such transformation is featured by a series of supply-side variables such as demographic change, urbanization, increasing attention to social welfare, which will dominate China's economic growth rate in the future. It is estimated that, according to scenario analysis, the simulation value for China's potential economic growth rate between 2013 and 2018 is 6.4%. It is found from the assessment of sustainable development and transformation and upgrading for China's provinces, regions and municipalities that there have been improvements in development prospect index and continuous enhancement in economic growth quality and economic sustainability for China's all provinces, regions and municipalities, and slowdowns in such index for the central, west and whole China, and even declines in such index for some regions. China's current transformation from industrialization to urbanization tallies with the high weight of indicators such as the level of urbanization and insurance for endowment, unemployment and medical care and other indicators which are closely related to urbanization. In view of the economic development conditions in 2013 and the long term challenges for China's economic development from 2014 to 2018, it is necessary to adopt supply-side macroeconomic management polices to tackle with the decrease of potential economic growth rate, which include (a) perfection in competitive market, (b) improvement in relative price system, (c) transformation of mobilized economy, (d) enhancement of structural transformation efficiency, (e) decrease of input cost in supply elements and (f) establishment of social security system suitable for China's national conditions.
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