China to transform growth pattern, explore new development model: Vice-premier

DAVOS, Switzerland, Jan. 28 (Xinhua) -- China will transform its current growth pattern and explore a new development model in the post-crisis era, Chinese Vice Premier Li Keqiang said here on Thursday.

"As we stand at a new historical juncture, we must change the old way of inefficient growth and transform the current development model that is excessively reliant on investment and export," Li said in a keynote address to the annual World Economic Forum held at the Swiss ski resort.

China needs to follow the scientific outlook on development, accelerating transformation of economic growth pattern, intensifying strategic adjustment of economic structure and endeavoring to explore new development models, he told the audience.

The vice-premier illustrated his points in three aspects.

First, China will focus on boosting domestic demand to drive economic growth.

"We will strive to expand domestic demand, especially consumer demand," Li said.

China will "make every effort" to increase employment, speeding up improvement of the social safety net, adjusting national income distribution structure, increasing income of the low and middle income groups and working to ensure sustained increase in consumer spending.

"At the same time, we will optimize investment structure and continue to improve investment returns," he said.

Li noted that China's fast urbanization has boosted domestic demand.

China needs to continue to advance that process, he said, so that "there will emerge a pattern of balanced development of large, medium, small-sized cities and small towns, and parallel development of city belts along the coast and city clusters in the central and western parts of the country."

Second, China will rely on technological innovation, energy conservation and emissions reductions to promote industrial restructuring and upgrading.

"Adjustments of the world economy and upgrading of China's domestic consumption structure require us to optimize and upgrade our industrial mix," Li said.

China must adapt to markets needs, encouraging innovation of enterprises and being supported by technological progress, he said.

"Efforts need also be made to protect intellectual property rights."