Third, economic development also needs skilled workers. This requires investment in training and better living condition for workers and raising their social welfare.

And fourth, the tertiary industry, namely social and technical service systems, should also be developed to support economic prosperity.

China's economy has reached a bottleneck, and its impetus will be greatly hampered if no substantial progress is made in social development. Moreover, the twisted situation of China's great loss of investment to overseas markets should be rectified immediately, as strengthening investment in social development should be a government priority during the 12th Five-Year Plan period (2011-2015).

However, the economic development oriented mindset has been prevailing in governments at all levels in the past decades. This mindset in policy-making is tilted solely in favor of enterprises. Social policies have to make way for business development. Market economy rules have been applied to the operation of social welfare, including medical care, education and housing.

People not only require the government to fight against corruption, but also need the government's help in dealing with life's problems. The traditional political means to strengthen social control no longer serve to satisfy people, as China's social structure has changed dramatically. Increased social investment, especially over the next five years, is the only way to meet people's needs.

There are six social aspects that urgently need more government funds: welfare of children, the aged and disabled, medical care, education, and housing.

Work must start with the welfare of children, the aged and disabled, as they are the most vulnerable groups in society. So far, China lacks facilities and recreation sites for children, convenient infrastructure for the disabled and social services for the old.

Chinese society faces a great challenge with social services for the elderly, as more people are getting old, and most have only one child to take care of them in their twilight years. Increased investment to provide more social services to them is becoming increasingly compelling.