Fourth, China’s urbanization level is about 60 percentbut it

estimated to increase to 75 percent, even 80 percent by 2035, which will create more challenges for the ho

usehold registration system, public services and public fiscal expenditure. These problems demand greater attention.

The authorities also have to maintain a relatively high level and pace of research and development. China’s investment in basi

c research accounts for only 5.5 percent of the overall R&D investment. The corresponding figures for the US and Fr

ance are 17 percent and 25 percent. Which means China’s long-term development requires more investment in

basic technologies, in the absence of which its high-quality and healthy development could suffer.

Moreover, investment will be the main momentum of China’s econom

ic growth for a long time to come. But given that A share listed companies’ return on inves

tment is only 3 percent-a rather low rate-the investment environment needs serious improvement.