China's upgraded growth model provides opportunities for world(2)

The world economy is expected to establish a new-type cycle based on "Chinese demand," Goldman Saches said in its research newsletter.

Andrei Ostrovsky, deputy director of the Far East Research Institute of Russia's Science Academy, said China's biggest advantage is to have a huge domestic market and the new-type urbanization strategy heatedly discussed at the two sessions holds key to activating the market.

China's urbanization ratio lags far behind developed countries, where the ratio averages 70 percent.

With an increase of every 10 million urban dwellers, investment in infrastructure will grow 1 trillion yuan (about 629 billion U.S. dollars), according to the China Institute for Reform and Development.

And the ensuing reforms in income distribution, social security and public service systems will unlock the full potential of domestic demand in the economy, the institute said.

Nicholas Borst, a research analyst at the Peterson Institute for International Economics, said China's urbanization provides a vital opportunity for the world.

Infrastructure construction during the urbanization process will provide opportunities for high-tech companies overseas while the influx of rural citizens will drive up consumption and expand domestic demand, which will in turn generate deals for foreign companies selling products and services, he added.

CHINA'S ECONOMIC RESTRUCTURING NEW DIVIDEND FOR GLOBAL INDUSTRY

"We need to promote industrial restructuring, establish a new framework for modern industrial development and lay stress on the settlement of the problem of overcapacity in a bid to improve the quality of, derive more benefits from and add new impetus to China's economic development," said Xi Jinping, general secretary of the CPC Central Committee, while deliberating with NPC deputies on the government work report during the annual session of the 12th National People's Congress (NPC).

To incorporate information technology into industry, to prioritize advanced manufacturing, to upgrade traditional industries through financing and supporting emerging strategic industries....

Those initiatives serve not only as a response to global economic and technological competition in the post-crisis era but a driving force for a new round of international division of labor and industrial restructuring to form a new pattern featuring a win-win outcome for the whole world.

Vice president of India-China Friendship Association G.H. Fernandes said that China is gradually reducing its role as the world's factory, which is good news for its neighboring regions.