Innovation to drive China's development

China is set to enter a new stage of innovation-driven and high-quality development over the next five years, providing new impetus to global recovery and growth, experts said on Wednesday.

Xu Hongcai, deputy director of the China Association of Policy Science's economic policy committee, said China's economy is set to expand by around 8.5 percent this year after the low base of last year. During the 14th Five-Year Plan period (2021-25), the economy will grow by an average of between 5 percent and 6 percent on a yearly basis, he said.

"In the long run, we expect to see a gradual economic growth slowdown. By 2025, China's economy is expected to grow by more than 5 percent, while the per capita GDP could reach $13,000."

Xu's estimates came after China set major targets and tasks for economic and social development during the 14th Five-Year Plan period, with a key focus on fostering high-quality growth and boosting innovation-driven development.

Citing the 14th Five-Year Plan for Economic and Social Development and Long-Range Objectives through the Year 2035, Xu said China's new five-year plan will lead the country to a new journey to fully build a socialist, modern country in an all-around way, with a key focus on improving the quality and effectiveness of development.

"Guided by the new development concept, China will pursue innovative, coordinated, green, open and inclusive development," Xu said.

"Under the new plan, China will quicken the pace of building a new development pattern that will nurture a strong domestic market, with an emphasis on domestic circulation and enabling the domestic and international circulations to reinforce each other.

"In fact, China's future development will benefit both local people and foreign investors, offering new growth opportunities for global stakeholders," Xu said.

"Looking forward, China will deepen reforms and expand opening-up at higher levels, shifting the focus from simply promoting trade and investment liberalization and facilitation to expanding institutional opening up."

Zhang Yansheng, chief researcher at the China Center for International Economic Exchanges, said the country is dedicated to further opening its economy, with a key focus on building an open market, expanding institutional opening-up and boosting innovation cooperation.

Zhang said China's new development paradigm emphasizes building an open economy and bolstering ties with other nations, demonstrating the country's firm determination to deeply integrate itself into the wider global economy.

"Specifically, China will continue to cut import tariffs, facilitate trade and investment, further advance opening-up in the services sector and foster a business environment based on market principles, governed by law and on international standards such as the Regional Comprehensive Economic Partnership agreement," Zhang said.

"To foster innovation-driven development during the next five years, we need to conduct deeper global cooperation and participate in international circulation at higher levels."

Citing the new development pattern, Zhang said building an open economy will also help create a key competitive edge in international cooperation.

Wu Kai, Airwallex Greater China CEO, said the ongoing efforts to pursue high-standard opening-up and promote stable, improved performance in foreign trade and investment will create huge growth potential in the Chinese market.

"China's ongoing financial opening-up policies is good news for foreign companies, and the development of the cross-border payment sector is also of great significance for spurring vitality of foreign trade," Wu said.

"We believe globalization is an irreversible trend, With China's high-quality development and supportive policies, we look forward to playing a bigger role in China's future development."