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e for government. Government should reduce its role in direct production and distribution activities. There are five characteristics that are seen as underlying the new development strategy: 1. Improving the quality of growth while continuing to increase ines. 2. Achieving balanced and sustainable growth, consistent with market forces 3. Strengthening innovation and creativity 4. Unleashing China’s full human potential 5. Valuing the role of the market, the rule of law, social values and high moral standards. Out of this es a strategic plan that involves six new directions. These are: 1. Transforming the role of the state and the private sector. 2. Encouraging systemwide innovation and adopting an “open” innovation system with links to global Ramp。 the expropriation of rural land for urban use needs to be controlled and the pensation system changed。D. Quality of research needs to improve. Quality of education, especially tertiary education needs to improve as well. Green development is seen as another ponent of future growth. China is currently the largest consumer of fossil fuels in the world and the largest emitter of carbon, although its cumulative carbon emissions are still behind the US. Green development can be a driving force of growth, reduce resource depletion, improve health, and contribute to solving the global problem of climate change. Social policy is also of concern. China faces four problems in this arena: 1. Relatively high inequality at this point 2. Distorted incentives and market structures in social service delivery. 3. Rapid aging of the population. 4. Rising expectations. There is a need to strengthen China’s fiscal system – New spending in social policy areas and green policy both may call for a significant increase in government spending. BUT, maintaining fiscal stability is also a necess