Chinese Premier Li Keqiang gives a press conference at the Great Hall of the People in Beijing, capital of China, March 16, 2016. (Xinhua/Xing Guangli)
Chinese Premier Li Keqiang on Wednesday elaborated on the meaning of China's "new economy" in a press conference following the conclusion of the country's annual legislative session. [Special coverage]
The concept was first introduced in China's latest government report and has been the topic of much discussion both at home and abroad. What does the "new economy" refer to? Why discuss it now? What can we expect from it in the future? Below are the Chinese premier's views on the "new economy."
WHAT IS IT?
The "new economy" refers to fostering new drivers of growth and encouraging China's economic transformation, Li told reporters at the Great Hall of the People.
Its concept covers a wide range of areas, Li said. "It is not only the emerging forms of business including e-commerce, cloud computing and the Internet of things. It can also be found in smart manufacturing and large scale customized production in the industrial sector. It is also included in family farms and share-holding cooperatives."
WHY PUT IT FORWARD NOW?
When development has reached a certain stage, it is natural for traditional growth drivers to begin to weaken. The same transformation took place in many developed countries, the premier said.
"We need the benefit of new growth drivers to accommodate the needs of the industrial revolution," he said. "When we combine new growth drivers with traditional ones, we can create a hybrid driving force."
WHAT WILL IT BRING?
"New growth drivers will also help with our efforts to cut industrial overcapacity," said Li who noted that companies with overcapacity have problems with overstaffing. The growth of new drivers will help generate new jobs.
The campaign of mass entrepreneurship and innovation, Li said, is aimed at providing a platform for various types of companies and research institutions, and to create a broad space for crowd founding, crowd innovation and crowd sourcing.
