By Long Guoqiang, director-general of General Office, Development Research Center of the State Council

Research Report No 166, 2013

Abstract:

When the international crisis broke, the global economy went into a period of great adjustment and transition, bringing trends that are different from before in the next five years: the global economic growth rate is dropping and will slow down, emerging economies will become a new engine for economic growth, while developed countries try to revitalize manufacturing, developing countries quicken the pace of investment abroad, which drive the division of labor in the global value chain,  much attention is paid to innovation with new emerging industries ready to prosper and greater competition in high-end industries and technology, and global energy structure and supply and demand undergo profound, lasting changes.

In addition, developed countries will adopt loose monetary policies to deal with the crisis resulting in excess liquidity worldwide and financial turbulence as well as inflation.

International economic governance will continue to change and regional integration will play an important role in realizing trade and investment liberalization. The great global economic adjustment will bring new changes for China's development and China should continue its basic policy of opening-up and innovate opening-up strategies and models.