The real economy is the economic foundation and source of wealth of a nation, and fundamentally determines the competitive edge of the nation. Around the world, a wide range of issues, such as the widening of wealth gap, decline of traditional industries, and growing unemployment of blue-collar workers, are all a result of the decline and hollowing out of the real economy. // The Chinese economy is shifting its focus from rapid growth to high quality and stands at a crucial stage of economic transformation, economic restructuring, and transition to new growth drivers. To effectively respond to all risks and challenges and lay a solid foundation for high-quality development, it is essential to build a modern economic system. That means building an industrial system that coordinates the real economy, scientific and technological innovation, modern finance, and human resource development, which can help improve China’s economic innovation and competitiveness and move its quality of growth to the next level. //To enhance the real economy, it is important to continue supply-side structural reforms, facilitate the integration of the internet, big data, and artificial intelligence into the sector. Also, we need to foster new growth drivers in medium- and high-end consumption, innovation, low-carbon development, the sharing economy, modern supply chains, and human capital services. The ultimately goal is to increase the quality and efficiency of supply systems. //At the same time, innovation-driven development strategies need to be rolled out on a larger scale to transform Made-in-China into Created-in-China; focus more on the quality, instead of the speed, of growth; and upgrade the manufacturing industry from quantity to quality. Financial burden on the real economy needs to be reduced further, by cutting transaction costs and especially those imposed by the government and scaling up tax and fee reduction policies in ways that stimulate the vitality of business entities. //
