China's is in urgent need of innovation to achieve its development goals, but to choose the path most suitable for that innovation, the nation's leaders must take into account China's unique history, geography and culture, according to Yao Yang, president of the National School of Development at Peking University.

According to the NSD website, Yao notes that the Chinese economy has experienced two important structural transformations in the past decade. It has shifted from an export-oriented growth model to a domestic demand-oriented growth model. And it has shifted away from a focus on heavy industry.

The domestic economy experienced numerous ups and downs over the nearly 70 years since the founding of the People's Republic of China, but Yao said the reform and opening-up of the past 40 years has put China back on the right track. He also noted that each region in China must adhere to reform and opening up based on its own development stage and characteristics.