New-normal growth engines

If China really wants to become a country full of economic vitality, it must inspire innovation. China should not only copy the West's ways of doing things. China needs to rely more on itself. This is an inevitable process coming with China's development, and a process transforming China to a new innovative economy, which relies more on innovation industries, innovations of individuals and enterprises at home.

Edmund Phelps, Columbia University, time-weekly.com, Sept 9.

Some causes for Japan's long-term stagnation also exist in China, such as preferential policies for some products and State-owned enterprises, monopoly of SOEs and State-owned financial agencies, excessive administration, vested interests, and the lack of financing and risky investment system for hi-tech enterprises. China's economy has finished the catch-up phase that featured export and investment. China's growth now has to mainly rely on the development of the consumption-oriented hi-tech products and services.