Economic development must be a process of replacement of the old and the new iteration of the kinetic energy when traditional kinetic energy from weak to strong and need new energy rises and the traditional kinetic energy transformation. Foster new kinetic energy, transformation of traditional kinetic energy, is in the economic development of the new normal from the simple pursuit of speed to more pursuit of quality change.
Past supply market is driving economic growth strong momentum, now, market demand to supply the requirements of occurred profound changes, market demand gradually weakened the economic growth down and pulling the economy from the past emphasis on quantity of rapid expansion, emphasis on quality and brand reputation enhanced from stressed that "there is no" turn on "OK", from the "fast" to "do good". The transformation of the so-called old and new kinetic energy is essentially the process of enterprise survival of the fittest, through the selection of high-quality enterprises, so that it has become a new economic growth momentum.
The key points and difficulties in the conversion of new and old kinetic energy is the overall improvement of the quality and efficiency of the supply system, and it is the fundamental transformation of the economic development mode. In the face of this change, it is not only to prevent the need to continue to shrink, but also to promote the structural reform of the supply side, the task of macroeconomic regulation and control is unprecedented complex. The current economic development faces many contradictions and risks, the most prominent is the structural excess capacity is more serious; real estate inventory distribution and population urbanization flow does not match, the stock of housing digest difficult. Contact with this, more difficult business, debt chain length, the greater the risk of debt. And resolve these outstanding contradictions, it is necessary to continue to stabilize the demand at the same time, to promote the supply side of structural reform.
It is gratifying that the current economic structure has had a number of positive changes in the old and new energy to accelerate the transformation of the characteristics of the more obvious. This year first half of economic development data show that the industrial structure in the optimization and 6.7% in the first half GDP growth in composition, the tertiary industry growth of 7.5%, accounted for 54.1%; investment structure to improve, high-tech industries and emerging industries of strategic investment showed double-digit growth; consumption structure also in improving, past residents consumption structure of 50% on food, now Engel's coefficient has been reduced to about 30%, consumer information, network consumption growth rate close to 30%.
But we also should see. At present, China's economy still faces greater downward pressure, steady growth is facing severe challenges, the urgent need to improve the handoff efficiency of economic development from the old to the new kinetic energy, so that the new kinetic energy release of the strong power as soon as possible and get the economy growing pains become shorter.
Structural adjustment is a process that is gradually being transmitted from the industrial to the upstream, and the heavy chemical industry represented by iron and steel industry is in the key period of adjustment. Who in the past has expanded rapidly, and now the game who do well. For low level, in the long run there is no excess capacity in the market demand, to grasp the structural adjustment of the "window period", in order to ton output capacity of the spirit is determined to eliminate, and never let it hinder the pace of the quality and efficiency of the supply system.
The essence of the transformation of the old and new kinetic energy is to establish a reasonable, effective and fast switching mechanism of the two. Over a period of time, through a series of reforms of decentralization, greatly enhance the vitality of the market. In the future, to accelerate the new kinetic energy conversion efficiency, need on the basis of the decentralization, further emphasizes the importance of responsibilities and constraints, to unite the responsibilities and rights. The enterprise blindly expansion does not bear responsibility, bear heavy losses but stiff and dead things are not allowed to happen again.
Must be recognized, the old and the new kinetic energy conversion requires painstaking research and long-term and arduous and meticulous work, the key lies in the implementation of to increase efforts to promote the reform of the floor, so that the reform will continue to see the results, so that the masses have more of a sense of.

(author Zhang Liqun Research Department of the State Council Development Research Center of macroeconomic research fellow）

(turn from the Chinese government network)