Since the start of the 12th Five-Year Plan period (2011-15), economic growth in China has been slowing. What the country needs now is not further stimulus measures aimed at restarting the country's former growth model, but a complete structural overhaul of its economy.

After the reform and opening up period began, China grew rapidly thanks to massive government investment. But in this process, macroeconomic risks accumulated. For example, the artificially low prices of land and labor in China helped local companies improve the competitiveness of their goods in overseas markets, but also resulted in an overemphasis on exports and overcapacity in several sectors.

Economic growth engines which rely on large investments of capital are not only unsustainable over the long run, but also deplete resources, damage the environment, and plunge critical industries into vicious boom-and-bust cycles which threaten the country at large.

The author is Zhang Yugui, an expert on finance.