New powerhouse takes economic transformation up a gear (3)

CLOSING GAPSQiutian Gear is one of many Chinese firms adapting to falling demand from abroad as most countries struggle with economic recovery, says Zhuang Jian, an economist with Asian Development Bank.Economic restructuring has never been more imperative, says Zhuang, if China is to reach its goal of a moderately prosperous society.For sustained economic growth, China must boost domestic demand by closing income gaps between urban and rural areas, across the regions and among different social groups, he says.In face of these challenges, the central government is reorienting the country's growth pattern from an energy consuming and export-led economy to a more efficient, consumption-led economy.This has led to the rise of a new economic powerhouse, the Chengdu-Chongqing economic zone, which puts priority on higher added value and consumption.