As the labor supply declines and labor cost increases, China must strengthen the supply front to really create new supply and efficiency dividends through reform. Reform on the supply front requires the improvement of capital-formation efficiency for the next five years.

China’s economy, already in the midst of a half-decade deceleration, won’t arrest its downward trajectory until at least 2018.

The first Chief Executive of the Hong Kong Special Administrative Region (SAR) C.H. Tung argues that the success of the modern day China is not accidental. While globalization certainly contributed to China’s rapid growth and prosperous development, what Tung describes as "China miracle" is a result of the country’s efforts to ensure a smooth leadership transition, enact sound policies, as well as of the expansion of freedom that liberated the entrepreneurial and innovative spirit of its citizens.

Last month, China’s leaders revealed details of the 13th Five-Year Plan, which will guide the economy’s trajectory until 2020. Gone are the directives to expand industrial production at a breakneck pace that characterized previous five-year plans. Now, the focus is on achieving sustainable long-term growth, underpinned by domestic consumption, a stronger services sector, entrepreneurship, and innovation.

The International Monetary Fund on Monday is adding the Chinese yuan to the basket of elite currencies comprising its lending reserve, marking a milestone in the country’s ascendancy as a global economic power.

With its economy slowing down, China is re-inventing itself as the next Startup Nation. A new report by UHY International, an accounting and consultancy firm based in London, unveiled data showing China is in pole position when it comes to entrepreneurship, spawning 4,000 new businesses a day.

Except for the disruptive years of the “cultural revolution”, the five-year planning system has given the country a unified strategic outlook, especially in the recent years of opening up and development. The current CPC Central Committee is steering the Chinese government, in the coming five years, to emphasize people’s livelihood and well-being, and to effectively promote economic transformation and consolidation.

In the past, people measured China’s contribution to global economic growth through China’s GDP growth. But many factors in the GDP are the profits created by the foreign companies’ investments in China, so new ways of looking at the impact of China’s economy are in order.

When it comes to economic rebalancing, China will need to be patient, recognizing that the current generation is simply too fixated on saving to provide the kind of surge in consumption that is needed. There are steps policymakers can take to accelerate progress, but, until the next generation grows up, real progress will have to wait.

Fluctuations in China’s currency and economy don’t have the wild effect on the global markets that many critics allege, and such accusations distract from a needed collective focus on maintaining stability.