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The Key Necessity here is that China’s economy has been transitioning from a phase of rapid growth to one of high-quality development. It is in this context that China formulates its macroeconomic, structural, reform and social policies for the coming years. This transition is an inherent part of the course of economic development. China’s per capita income is moving up from the current level of US$8,000-plus to US$10,000 and even higher. At such a stage of development, China needs to put more emphasis on structural improvement rather than quantity expansion.

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