Despite facing numerous difficulties and challenges, such as relatively serious structural overproduction, China's economy still boasts good fundamentals with huge development potential, strong resilience and a huge room for self-adjustment. If China coordinates its policies well, nothing can stop it from boosting its economic growth.

The Central Economic Work Conference in December pointed out that China should expand domestic demand by increasing and raising the quality of supplies. In doing so, the top authorities hit the nail on the head, because there are several examples at home and abroad of consumption being boosted by effective supplies, such as the iPhone in the United States and high-speed railways in China.

Because high-speed trains are safe, comfortable and fast, they are being favored by an increasing number of Chinese passengers as a mode of transport; high-speed railways have also become a new symbol of China for the rest of the world. The construction of high-speed railways in China is based on the demand insufficiency theory of the Keynesian school of economics.

Although high-speed railways have fueled genuine demands, some people are still concerned that China's campaign to do away with backward production modes and source new supplies could cause repercussions in the market. But such concerns are unwarranted, because the campaign is basically similar to the previous one to promote industrial upgrading.

China's efforts for industrial upgrading have been bearing fruits in recent years. Numerous enterprises have emerged in a variety of fields on the strength of advanced technologies. For example, Huawei has become a tech giant because its telecommunication equipment are world class. The company has also made huge progress in cellphone technology.

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