In Pursuit of Quality
China’s economy has been transitioning from a phase of miraculous growth to a stage of high-quality development. Insiders believe that this is a pivotal stage for transforming the growth model, improving the economic structure and fostering new drivers of growth. Promoting high-quality development has, therefore, become the top priority for 2018. According to the Report on the Work of the Government 2018 delivered by Chinese Premier Li Keqiang on March 5, China should devote greater efforts to addressing imbalance and inadequacies in its development, and give priority to quality and performance in promoting economic structural upgrade.
During the Two Sessions of the National People’s Congress (NPC) and the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) held from March 3 to 20, NPC deputies and CPPCC National Committee members shared their insights on high-quality development. Excerpts of their views follow:
High-quality development aims for maximum economic, social and environmental outcomes by means of improving technology and management.
Chen Baoshan
NPC Deputy and Professor with Guangxi University
High-quality development means to achieve quality yields with inputs as low as possible. It aims for maximum economic, social and environmental outcomes by means of improving technology and management. Social harmony and people’s strong sense of happiness are also manifestations of high-quality development.
Evaluation on high-quality development should be comprehensive. Economic growth at the cost of environment and high energy inputs does not equal to high-quality development, neither does a situation where the environment is well-preserved but the economy is underdeveloped. For example, the housing price is about 2,000-3,000 yuan ($317-475) per square meter in my home city of Laibin, southwest China’s Guangxi Zhuang Autonomous Region. An ordinary family could afford to buy a big apartment. But the price has been at that level for nearly 10 years, and job opportunities are also scarce, because the city’s economic development quality is not high.
The development of the Internet and data technologies have changed people’s lifestyle and spurred innovation.
Cao Huiquan
NPC Deputy and Director of Hunan Economic and Information Technology Commission
As Chinese Premier Li Keqiang said in the Report on the Work of the Government 2018, transitioning to high-quality economic development is the inevitable requirement of the time we are living in. China now has the largest middle-class population in the world, whose demands on products and services are increasingly higher. The high-quality development is to satisfy the demands of such a population. An improved standard of demands is reflected not only in the consumption sector, but also in the manufacturing sec-tor. The young generations of the post 1990s and 2000s prefer undertaking innovative and enterprising tasks in big cities to working in manufacturing factories where the conditions are relatively harsher. They are demanding a better living environment as well as a working one. The development of the Internet and big data technologies has tremendously changed people’s lifestyle and spurred innovation. In turn, innovation makes it possible for a further improved lifestyle. It is a dynamic interaction. Pursuing a better life is one of the goals for high-quality development. 
Yang Weimin
CPPCC National Committee Member and Deputy Director of the Office of the Central Leading Group for Financial and Economic Affairs
High-quality development has two aspects. On the one hand, inputs, including capitals, labor, resources and energy should be efficient. On the other hand, the performance should be outstanding. High-quality development should be rewarding, with investments gaining returns, enterprises making profits, employees having more incomes, and the governments having tax revenue. The Chinese economy used to be heavily driven by low-cost labor and high money supply. In the future, the drivers will shift to hi-tech development and improvement of labor productivity. The main reason is that the previous edges, like abundant labor forces, low-cost land and natural resources, and favorable monetary policy, are diminishing.
The last annual Central Economic Work Conference held in late 2017 pledged to create a favorable institutional environment, for example, in terms of performance evaluation system, for highquality development. From the goal of completing the building of the moderately prosperous society in all respects in 2020 and basically realizing the socialist modernization in 2035, to developing China into a great modern socialist country that is prosperous, democratic, culturally advanced, harmonious and beautiful, it is a process of pursuing highquality economic development.
David Daokui Li
CPPCC National Committee Member and Director of the Center for China in the World Economy with Tsinghua University
To achieve high-quality development, priorities should be given to three fields. First, economic structure should be further upgraded. Second, economic growth should be driven by consumption instead of investment. Third, against the backdrop of an economic upward trend, long-term potential risks should be mitigated. For example, the macro leverage structure needs to be changed. Although the leverage ratio from the macro aspect will not take a plunge, some low-quality loans should be resolved.
In my opinion, the key to high-quality development is to make people have the sense of fulfillment. If they become welloff, or find it affordable and convenient to be discerning consumers, that will be true high-quality development. The Chinese economy has grown to a new stage where people’s living necessities are no long issues, but diverse demands are calling for better products and services, including a pleasant environment, high-quality medical services and good education. With changed consumer demands, the extensive economic growth model should be upgraded accordingly. Previously, producers didn’t have to worry about the sale of their products; but nowadays, they need to tailor their products and services to consumers’ demands.
Peng Shou
NPC Deputy and Vice President of China National Building Material Group Co. Ltd.
Cement and glass manufacturing are widely regarded as sectors with overcapacity issues. However, through deepening supply-side structural reform in 2017, the excessive production capacity in the sectors has been cut, while the environment has been better protected and manufacturing performances improved. Reducing overcapacity doesn’t mean totally eliminating the sectors, but aims to change the previous practice of excessively pursuing yields and encourage businesses to improve the quality of products, reduce energy consumption and better protect the environment. From this point of view, technological innovation is particularly important to high-quality development.
It is a qualitative upgrade by transitioning from high-speed economic growth to high-quality development. How can this be realized? I think businesses should always pursue highquality products in line with international upmarket standards, and develop technology and products which are recognized by the world market. Quality products and enterprises are vital to highquality development. Despite a great number of Chinese listed companies, few of them are from the manufacturing sector. Companies in the real economy should be made stronger and larger to serve the vision of high-quality development.