Since market reforms started in 1978, China has moved from a centralized way to plan the economy not pure market and experience the fast economic and social development. The average GDP growth of about 10 percent a year has brought more than 500-million people escape from poverty. Millennium Development Goals all have been reached or are within reach. With the 1.3-billion population, China recently became the second-largest economy and the increasingly important role and have in the global economy. However, China is still developing country (capita income remain fractions of advanced in-country) and its market reform is incomplete. Official data shows about 98.99-million people still live below the national poverty line of RMB 2.300 per year at the end of 2012. With the second largest number of poor in the world after India, poverty reduction remains the fundamental challenge. Rapid economic ascendance has caused many of the same challenges, including high inequality; rapid urbanization; challenges to sustainable development of the environment; and external imbalance. China also faces pressure from a group of people related to population aging and the internal migration of labour. Significant policy adjustments have to be made in order for China's growth to be sustainable. Experience shows that the average income from transfer to high income status can be more difficult to move up from low to medium income. 12 of China's five-year plan (2011-2015) this issue aim to strongly. It emphasizes the development of services and measures to target social and environmental imbalance, established for the reduction of pollution, to increase energy efficiency, to improve access to education and health, and to extend social protection. The annual growth target of 7 percent signalled his intention to focus on the quality of life, not the growth pace.
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