Core Tips: Justin Yifu Lin, China’s economic expert has said, China has the potential to maintain its annual growth rate of 8% over the next 20 years. Lin compared the development in China with that of Japan, Singapore, Taiwan and South Korea from the 1950s to the 1990s. He drew the conclusion that China has the potential to have a sustained development at a growth rate of 8% in the next 20 years.

　　Zhang Baoping, a journalist from Xinhua News Agency; and Jianping, a reporter

It was reported on CNFIN.COM/XINHUA08.COM that at the invitation of the Chicago Council of Global Affairs, Justin Yifu Lin, China’s economic expert, talked about China's future economic development trends with business executives of the central USA, professionals, as well as university professors and students in the Ritz-Carlton Hotel in Chicago.

"China has the potential to maintain an annual growth rate of 8% over the next 20 years," Lin said confidently. He talked about economic reforms at the end of 1978, the transformation to market economy and the practical strategies adopted by China. In this way, China achieved rapid development of its economy. He said: "From 1978 to 2012, China's GDP growth rate reached 9.8%, which can be described as a miracle."

Lin said that the essence of economic growth is constant technological upgrading and industrial transformation. China, as a developing country, has the advantage of being a "latecomer" in these two areas. He pointed out that it is with this main mechanism that China was able to achieve rapid development over the past 30 years. However, China's future growth rate depends on whether it can fully make use of these advantages.

"There still remains a big gap between China's per capita income and that of developed countries," Lin said. "Per capita income reflects the average labor productivity of a country, which also marks China's technological and industrial level."

Lin compared the situation in China with that of Japan, Singapore, Taiwan and South Korea from the 1950s to the 1990s. He drew the conclusion that China has the potential to have a sustained development at a growth rate of 8% in the next 20 years.

After his speech, Lin said to reporters of Xinhua News Agency that "China's Binary Plan cannot only ensure the transformation of the original large-scale state-owned enterprises, but also promote the development of a new age of industrial manufacturing." He also pointed out that to reach the growth rate of 8%, China must face a number of challenges, including an adjustment of the large income gap and control of corruption. Meanwhile, China should also establish its economic development strategies based on its comparative advantages, in order to maintain this competitiveness.

　　Lin said: "China's agriculture is also very important because large numbers of people are employed in agriculture. But with the development of urbanization, the proportion of agriculture in the GDP will be reduced, so will its functions."