Experts suggest six ways to maximize China's economic growth potential

Analysts forecast that China's economy will maintain its growth trajectory in 2024. This growth will be fueled by several key factors, including deepening reforms as well as investments in new productive forces.

A commentary in the national newspaper, Economic Daily, emphasized the need for China to deepen reforms in both the production factor allocation system and the income distribution system.

Specifically, the article suggested that the country should actively promote market-based mechanisms for allocating land, labor, and capital. 

It also advocated to further increase labor income share and employee compensation ratio, as consumer spending remains a vital driver of growth. 

Retail sales of consumer goods, a key indicator, reached 47.15 trillion yuan ($6.55 trillion) in 2023, reflecting a 7.2 percent year-on-year increase. Additionally, final consumption contributed 82.5 percent to economic growth, highlighting its significance.

Investing in new productive forces represents another key strategy. This term refers to advanced productivity methods that go beyond traditional economic models. It emphasizes the role of science and technology in driving growth and fostering the development of strategic emerging industries, such as new energy, high-end equipment, and biotechnology.

Data from the National Bureau of Statistics revealed a steady rise in China's GDP share of these strategic industries within. From 7.6 percent in 2014, their contribution grew to over 13 percent in 2021, with a projection exceeding 17 percent by 2025.

Experts proposed further measures to bolster growth, such as promoting institutional opening-up, optimizing resource allocation, accelerating urban development, investing in human capital and mitigating systemic risks.

Li Daokui, director of the Academic Center for Chinese Economic Practice and Thinking, emphasized China's maturing economy and its significant potential. He expressed confidence in the projected 5 percent growth rate for 2024, highlighting the country's strong growth trajectory.