Third, China seeks to transform the economic development approach. For years, we have heavily relied on the export as well as government investment. India and China have successfully tided over the difficulties brought by the global financial crisis. China introduced the economic stimulus package to deal with the influence of such crisis. India also has done quite well in that regard by taking prompt actions in that area. But relying on export and government investment is not sustainable. Right now China is trying to expend the domestic consumptions. According to one statistics, the contribution by household expenditure to the GDP of China is only 35%. The contribution by the household expenditure to GDP in India is around 57%. Of course USA is doing much better and the household expenditure contribution to GDP is 71%. In China, it’s not easy to achieve the target of expanding the domestic consumptions. One problem is that people may not have money. Second problem is that people are unwilling to spend the money because Chinese people are good at saving money. So the first thing to address is to let people have money. There are big income disparity and regional disparity in China. For example, I once worked in Tibet Autonomous Region (TAR), which is the west part of China. In TAR, the per capita GDP as well as the net income of the people only occupy respectively two thirds of the national average per capita GDP as well as the average income of China. Especially in some agricultural and rural areas, because of the limited income, farmers are even unwilling to go to hospital to receive proper treatment. I think there are lots of similarities between China and India in that regard. Recently, China has taken some measures to address these issues. One measure is to raise the tax threshold to 3500 RMB. Around 60 million wage earners benefit from such tax reduction. The next issue to address is to encourage people to spend money. Some people don’t want to spend money because they have worries. If I don’t save money, when my kid needs go to school, I don’t have money. If I get retired, I don’t have enough money to support my retirement life. Especially in the cities, most families only have one kid. If the kids grow up and get married, one couple needs to support four parents. This is a huge burden. China right now is implementing and popularizing the social security system so as to relieve the worries of the common people. They can feel confident to spend on kid’s education, medical care and other issues of necessities. Once people have money and are willing to spend, we can achieve the goal of expanding the domestic consumptions.
第四，中国要更多依靠科技创新推动发展。我们鼓励发展包括高端装备制造、新能源、新材料、生物技术、新一代信息技术、新能源汽车和节能环保技术在内的新兴战略产业。预计2015年新兴战略产业的产出约占国内生产总值的8%，2020年这一数字将提高到15%。同时，我们将提升传统制造业。由于中国正在进行经济结构的调整，中印两国之间合作的机会很多。中国“十二五规划”作为一个纲领不仅对中国未来发展至关重要，对包括印度在内的其它国家和地区开拓中国市场也有重要意义。
The fourth point I want to stress is that China wants to apply more innovations and science to the economic development. We are now encouraging the development of new strategic industries, such as new-generation information technology, energy-saving and environmental protection, new energy, bio-technology, high-end equipment manufacturing, new materials and new-energy cars. We are going to increase the contributions of the new strategic industries to the economy to 8% by the year 2015 and to 15% by the year 2020. In the same time, we are going to upgrade the traditional manufacturing industries. There are lots of opportunities because China is experiencing economic structural adjustment. China’s 12th five-year plan is not only important to China’s future development as a guideline, but also it is important for outsiders including Indian business circle to explore the business opportunities in China’s market.
中印两国领导人经常谈到，中印有足够的空间共同发展，也有足够的领域开展合作。双方正努力提高经贸合作的水平。在扩展中印两国经贸合作方面，我想提一些建议。
