China has basically succeeded in its quantitative catch-up with advanced economies and has now entered into a new stage of economic development focused on the greater efficiency of resource allocation. In order to achieve the objectives of the 13 th Five-Year Plan for National Economic and Social Development, efforts must be made to reform the "petty-farmer" economic mode of production while promoting specialization, modernization, and economies of scale. The restructuring and upgrade of the manufacturing sector should be focused on existing industries and the development of high-end industries while maintaining China's comparative advantage in narrowing technology gaps with advanced economies. The goal should be to transform China from a large industrial manufacturer into a competitive one. Technological innovation should be based on demand, supported by projects, carried out by firms through the social division of labor, and work to increase the capacity of large enterprises to integrate the results of innovation. Materialized labor consumption and logistical costs must be reduced, and the quality and level of urbanization must be increased. To assist productivity development, urban citizenship should be granted to rural migrant workers. In addition, the urbanization of those who remain in the countryside should be promoted in order for rural populations to enjoy the benefits of industrially robust, technologically modern and ecologically sound civilization.
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