China has potential for mid-high growth

Also the Chinese economy has been plagued by high savings and low consumption since 2000. Although consumption's proportion of GDP started rising from 2010, the decline of external demand boosted the development of the tertiary sector, the added-value of which surpassed that of the second industry. This trend will continue for a certain period of time. By 2020, China is expected to become an economy built on domestic demand and a major world market.

The historical experiences of some successful economies prove the ending of the peak of industrialization does not mean an economy will inevitably decline.

Japan's economy continued to grow at 7 percent for years after the 1970s when its industrial peak came to an end. And South Korea maintained an economic growth above 8 percent on average for a decade after its industrialization peaked in 1988.

Industrial products from the two countries started entering the world on a large scale, electronics and automobiles in particular, after they reached the peak of their industrialization.

The robust stable economic growth of Japan and South Korea comes from their solid manufacturing industrial base, and innovation. Enterprises in the two countries pay more attention to product quality and innovation than the quantity of their output.

China has established a sound industrial base. If it can effectively develop a strong innovation capacity and turn innovation into industrial output, China can also maintain its economic growth at a mid-high rate.