sformation from high-speed economic growth to high quality development, its econo

my has reached a period of significant strategic opportunity. By 2035, China is e

xpected to achieve socialist modernization with its per capita GDP reaching 35,000 int

ernational dollars in terms of purchasing power parity (PPP). While the United States reached that level in 198

8, Germany, France, the United Kingdom and Japan did so in 1998, 2001, 2003 and 2004, respectively.

But to realize that goal, China has to solve several significant long-term problems. First, it has to mai

ntain high total factor productivity (TFP), which at present is only 43 percent that of the US, whereas whe

n the main developed countries achieved economic modernization, their TFP was about 78 percent that of the US. To in

crease its TFP in the following years, therefore, China should expedite systemic reform in order to let the mar

ket play a leading role in factor distribution and give full play to factor efficiency.

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