The shape of this triangle differs in different economic development period. Moreover, it is only when we adjust the economy within a triangle shape that the economy can stay stable and increase in a healthy way.

Low-carbon Goals

Jin Zhiguo: deputy to the 11th NPC and General Manager of Shandong Tsingtao Brewery Co. Ltd.

As the economic growth focuses on quality over quantity, energy efficient and environmentally friendly green industries are getting the chance to shine. And for many struggling industries, going low-carbon is not an option but a basic necessity if they wish to thrive in the future. Chinese alcohol makers, in particular, have lagged behind their foreign counterparts due to low energy efficiency and serious pollution problems.

But the dynamics are set to change. Many enterprises now are embarking on different routes to a carbon-constrained growth model, which is more sustainable and also profitable.

Tsingtao Brewery, for example, has adopted advanced technologies to improve energy efficiency and reduce costs. Carbon dioxide released during the beer brewing process is now collected and purified for use in the production of canned beer, effectively eliminating air pollution. Wastewater is also recycled and reused along the assembly line.

The green efforts are paying off as the company reported a robust 75-percent growth in profits last year while many domestic rivals struggled to survive.

As Chinese companies move up the value chain, they need to push forward research and development, as well as branding so that they can press ahead with innovation and lay a solid market foothold.

Tsingtao Brewery used to own more than 150 brands, but few of them enjoyed wide customer recognition. In an attempt to tackle the conundrum, we focused on a few high-end brands and made vigorous efforts in branding, marketing and after-sales services. Currently the top four brands command a stable consumer loyalty and make up more than 90 percent of our total sales.

Shanghai Goes Global

Zhang Zhao'an: deputy to the 11th NPC and Director of the Consulting Department of the Development Research Center of the Shanghai Municipal People's Government

Involving nationwide efforts to restructure the economy, Shanghai has always been at the forefront. The city looks to advanced manufacturing and its service sector for a more sustainable source of economic dynamism. The goal is to build the city into an international economic, financial, trade and shipping center.

The advanced manufacturing industries, including auto-making, bio-pharmaceuticals, information technology, steelmaking and shipbuilding, have largely relocated to suburban areas, leaving space for the service sector to prosper. The movement is also a needed boon for the underdeveloped suburbs to gather momentum.

The service sector now accounts for 59 percent of Shanghai's economy, well below that of developed countries. But Shanghai has deep potential to play a quick catch-up. Its huge population and growing economy are pushing up demands for all kinds of services, and the Central Government has also pledged a better policy environment for the sector to grow.

But the local government is still expected to remove some system barriers. For example, many manufacturers are also involved in service businesses like logistics and industrial design, and are eligible for a deduction in value-added tax. But if they separate the service businesses and set up an independent company, they would have to pay all the business tax. This has discouraged many enterprises from expanding their service businesses.