New thrust

Economic growth in China has been a much-discussed topic recently, due to the lower growth numbers during the first two quarters of the year. Economic growth during the first six months was 7.6 percent, the lowest in the past three years. China's overall economic growth eased to 7.8 percent last year, the weakest since 1999.

Experts like Chin, however, don't see any cause for concern yet. "China is taking several steps to reduce its reliance on exports and to boost domestic demand along with various steps for sustaining domestic growth. To achieve this it is also important to foster and support innovation," Chin says.

According to Chin, this does not mean spurring just technological innovation. "China really needs to consider other aspects like environmental protection. It is not only about saving the planet physically but also about protecting the conditions for human beings so that they can enjoy a good, healthy life and for the long-term survival of the human species and the biosphere."

From a policy perspective, it is obvious that the new government is already taking steps in that direction. There are already enough indications that when it comes to policymaking, China is focusing more on environmental protection than development.

In June, the State Council came out with 10 measures aimed at reducing air pollution in China. Among the measures are steps that restrain expansion of energy-intensive and polluting industries, a revised energy structure and strict punishments for polluters. Last month, the State Council outlined several measures to boost people's welfare and the overall quality of their lives.

With more policies in the pipeline, it is clear that China's economic restructuring is creating a new cycle of development and growth, which starts from environmental protection and pollution control. Better welfare measures are also expected to ensure healthier lives for the populace and curtail medical spending, which in turn could prompt ordinary Chinese families to boost consumption, experts say.

"I believe that economists like Hu Angang are correct in saying that green growth, clean production, environmental protection, and managing climate change need to be the central focus for China, moving forward," Chin says.

US President Barack Obama had a similar opportunity to push for changes in America's growth model when he assumed office in 2009. "But the moves in the US toward more environmentally sound and high tech growth have been slow, and cautious. It is really vital for China, and the rest of the world, if China can pioneer the speedy transformation to the new growth model," he says. Chin also says that China needs to take serious efforts to curb speculation in real estate and commercial realty along with continued efforts to curb government corruption.