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2013-December-18

Systemic Protection of the Ecological Environment

Transformation as the Key

The ultimate approach toward environmental management lies in transformation of the growth mode. The first step is industrial restructuring and closing down outdated capacities.

Of the total 39 industries in China, 21 now face the dilemma of excess capacity. Economics Professor Zhao Zhenhua of the Party School of the CPC Central Committee believes overcapacity ensues from local governments’ blind and unplanned competition for industrial projects and construction.

The central government is now focusing on transforming the development mode, through energy conservation, emission reduction, and industrial restructuring to promote industrial upgrading. Beijing, Shanghai and Guangdong all recently lowered their growth targets, leaving more space for transformation and upgrading. In the next few years, Tianjin, Shanxi, Inner Mongolia and Shandong will drastically reduce steel, cement and coke production capacities in response to air pollution. All these moves show a changing development philosophy within both central and local governments.

Transformation could also ensure that both the quality and efficiency of the economy are improved through scientific and technological innovation. China is now dedicated to promoting institutional reform, transforming the development mode and building an innovative nation through dynamic scientific and technological innovations. The Third Plenary Session of the 18th CPC Central Committee vowed to accelerate this process to ensure efficient, fair and sustainable economic development, reflecting current urgent needs and indicating clear policy trends for the future.

Science and technology is now developing very rapidly in China. In 2012, total research and development (R&D) investment for the first time exceeded RMB 1 trillion, 74 percent of which came from enterprises. By the end of 2012, China’s R&D staff numbered 3.2 million, higher than any other country in the world. The number of Chinese science and technology papers included in the Science Citation Index (SCI) has ranked second in the world for four consecutive years, and keeps growing swiftly. Approved patents from China numbered 217,000 in 2012, the third highest in the world. The transaction value of technology contracts has maintained an annual growth of 20 percent, reaching US $640 billion in 2012. With innovation capacity constantly enhanced, the contribution of science and technology to socioeconomic development has increased dramatically from 39 percent in 2001 to 51.7 percent today.

We have every reason to believe that with such robust policies and funding, along with scientific and technological support, China’s ecology and environment will keep changing for the better, ensuring that people and nature coexist harmoniously.

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