Satisfactory results were achieved in stabilizing prices in the first half of the year with a 2.4 percent rise in the Consumer Price Index over the same period last year, far lower than the control target of 3.5 percent for the entire year. There were 7.25 million urban jobs added in the first half of this year, slightly higher than the number created in the same period a year ago and an additional 4.44 million rural jobs.

To achieve its strategic goal of keeping the current growth level and facilitating future development, the government will not deviate from the path of economic transformation and restructuring or introduce new regulatory policies to bail out or support the market. It will seek steady growth in the course of economic transformation and upgrading by improving the market economy and exploring a new type of urbanization.

The government will introduce a series of policies and measures to promote both the transformation of the development model and economic renewal. These policies and measures will be new driving force for economic growth in China.

First, by promoting a rapid growth in the consumption of information. In the remaining three years of the 12th Five-Year Plan period, the State Council has targeted an average growth in information consumption of more than 20 percent each year. According to a preliminary estimation, information consumption will reach 3.2 trillion yuan ($517.66 billion) by 2015 and the additional output value of the relevant industries will be more than 1.2 trillion yuan.

Second, by adding substance to the strategy of enterprises "going out" and the "bringing in" of foreign investment and expertise. In this regard, there are four main measures that can be adopted. First establishing the Shanghai Free Trade Pilot Zone in which to conduct a trial project for upgrading reform and enhancing opening-up. Second, restarting the negotiations on a China-US investment treaty, which would open China much wider to foreign investment, ending the past practice of excluding foreign investment from certain areas. Third, working out programs for a new round of urbanization and expanding the space for relevant industries to grow. Fourth, the government will not waver in its determination to reduce the real estate bubble.

It is expected that the economic growth rate in the third quarter will be the same as that of the second quarter, if not slightly higher, and the growth rate for this year will be 7.5 percent. However, the possibility of a downslide in the fourth quarter still exists. However, the government will adhere to the general trend of economic transformation and upgrading, and seek to take advantage of innovation-driven development and the dividends of further reforms.

The author is a researcher in the department of economic forecasting at the State Information Center of China. www.chinausfocus.com