ABSTRACT
China's economic growth rate has declined from the previous average of about 10 percent to about 7 percent since the second half of 2011, indicating that China's socioeconomic development has entered the 'new normal'. The economic principles underlying the transition of industrialisation and the 'new normal' of economic development are consistent. The leading industries of industrialisation at different stages have different features. Specifically, in the pre-industrialisation stage, agriculture is the leading industry for economic growth. As China enters the late stage of industrialisation, the growth of enterprises transform to innovation-driven to factor-driven in the era of heavy and chemical industries. There are four driving forces. First, the government transformed from production-motivated to service-oriented. Second, China needs to comprehensively deepen reform and strive to build a unified and open market system that upholds fair competition and promotes innovation. Third, China shapes the institutions and mechanisms conducive to the residents' consumption. Finally, efforts are made to maintain macro-economic stability and prevent risks.
