China deepens restructuring amid slowing economic growth

Overly high housing prices and unequal access to education, pension and health care systems are some of the problems giving rise to public grievances -- and all of these problems require solutions.

Furthermore, these problems are in the context of a rapid urbanization process, which economists say will generate enormous domestic demand and greater market potential, providing new energy for growth.

Vice Premier Li Keqiang early last month urged addressing these problems by pushing forward urbanization along with industrialization and agricultural modernization in a coordinated way.

Consumption still plays a relatively weaker role in driving growth. It contributed 55 percent to the nation's GDP growth in the first three quarters, far below the international average.

This means that there is more room for a consumption boom, but the key lies in boosting reforms in wealth distribution because rises in people's incomes will directly boost consumption.

The nation also needs to expand structural tax reductions and break up monopolies so that companies will have more funds to innovate and upgrade technologies. Meanwhile, private investment will have greater access to more areas of the economy, allowing it to play a greater role in driving growth and adjusting the economic structure.

The State Council, China's Cabinet, on Thursday announced that the nation will continue structural tax reductions while making efforts to expand consumption of energy-efficient home appliances.

Moreover, the government will focus on deepening reforms in finance and taxation, investment and financing and electricity pricing.

Even though the country is registering a slower GDP growth rate, according to Zhuang Jian, an economist at Asian Development Bank, cost-effectiveness will improve if China's growth is increasingly powered by restructuring, the healthy development of small and micro-sized companies and more private investment.