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    China'S Economy: Three Difficult Problems And Three "Degrees"

    2010/9/27 11:48:00 58

    China'S Economy

    At the 2010 summer Davos forum, Chinese Premier Wen Jiabao expressed his right when he addressed the world economic forum President Schwab and entrepreneurs.

    sustainable development

    It is highly concerned that during the "12th Five-Year" period, the second industry will pay special attention to industries related to population, resources and environment, and energy conservation and environmental protection industries.


    In fact, this time in Davos

    Summer Forum

    The theme is defined as "promoting sustainable development". We can see that China is looking for a key to open up population, resources and environmental problems.


    There is no doubt that through the 30 years of reform and opening up, China's economy has made remarkable achievements. China's GDP surpassed Japan ranked second in the world in 2010, which is a clear proof.

    But at the same time, we also see that China's economic development is based on the great development of high energy consumption, cheap labor and environmental pollution. It is a huge development with high input, high output and low efficiency.


    Under such a development mode, China's economy still needs to face.

    Resource shortage

    In the middle of this century, the peak of China's population, the peak of employment population and the peak of the aging population will be followed. Facing the alarming situation of environmental pollution and ecological situation in some areas of China.


    To solve the three major problems of population, resources and environment, China's economy should move forward in three main directions.


    First, we must pform the way of economic development.

    From extensive development to intensive development, from factor driven to innovation driven.

    In his summer Davos forum, Premier Wen Jiabao said that the establishment of a new economic development model through "creation in China" and "Chinese service" by the questioners is a key issue in the pformation of China's economic development mode and a key issue for maintaining a balanced, coordinated and sustainable development of China's economy.


    Second, we must vigorously readjust our economic structure and build a modern industrial system.

    We should vigorously develop the service industry, especially the service industry closely linked to production, the high-end financial services industry, and the public service industry, such as education, health, medical treatment and so on.

    The development of the service industry, on the one hand, can make China's economic structure tend to be rational. On the one hand, it can absorb a large number of Chinese employment population. Employment in China is always a priority problem that needs to be solved.


    Third, inclusive growth.

    The fundamental realization of the development of the economy is "people".

    On the one hand, we should gradually increase the two "proportion", one is to increase the proportion of labor remuneration in the initial distribution, and the second is to increase the proportion of residents' income in national income, so as to ensure that the income of the masses can keep pace with the speed of economic development.

    On the other hand, in order to uphold social fairness and justice, we must emphasize fairness in distribution and avoid the huge gap between the rich and the poor in society, thereby affecting social stability and preventing China from falling into the "middle-income trap", thus affecting the sustainable development of China's economy.


    Of course, while developing in the three directions, we must also take into account the complexity of China's economic development and pay attention to handling three "degrees" so as to avoid the successful pformation of China's economy because of poor grasp.


    The first degree is to grasp the speed of economic development.

    China's economy has rebounded rapidly after the financial crisis. The GDP growth rate has reached 11.1% in the first half of this year.

    In terms of speed alone, this speed should be said to be a slightly overheated area.

    Therefore, some people also suggested that since the pformation of the mode of economic growth can be ignored, the growth rate of GDP can be ignored.

    To be sure, energy saving and emission reduction need to suppress the pace of economic development.

    To be sure, in order to change the way of economic growth, the GDP growth rate can be reduced to about 8%.

    But at this time, we must be vigilant, from the GDP theory to the other extreme GDP growth useless theory, resulting in the sudden stall of economic development.

    Many problems to be solved in China still need to be built on rapid economic growth.

    A radical change in the mode of economic growth may not be worth the candle.


    The second degree is to grasp the difference of regional development.

    China has a vast territory and different economic development. The economic development level of the coastal areas is far higher than that of the central and western regions.

    Coastal areas may have reached the late stage of industrial development, to a very urgent stage of industrial upgrading, to the stage of excess investment in fixed assets.

    But elsewhere, it may still be in the middle of the development of industrialization. Fixed asset investment may not be much.

    Faced with the difference of regional economic development, it is not appropriate to implement a standard to measure the degree of economic restructuring in the whole country.

    Instead, we should adopt differentiated development strategies according to the actual situation.


    The third is to handle the degree of economic development and institutional reform.

    China's proposed pformation of the mode of economic development was put forward in 1982, and it has been a long time.

    But in practice, there is still a big gap between this goal and reality.

    A very important reason behind this is that the system reform has not kept pace.

    For example, the shortcomings of the administrative system dominated by officials led to a limited increase in the level of science and technology and education, which directly affected the supply of human and technological resources needed to pform the mode of economic development.

    Therefore, in advancing the pformation of the mode of economic growth, we must increase the intensity of structural reform at the same time, so as to complement each other and promote each other.


    To maintain sustainable development, we must overcome three major problems related to population, resources and environment.

    The direction of China's economy is full of hope.

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    Read the next article

    People'S University Reports That China Will Face Rising Wages.

    China's macroeconomic analysis and forecasting report (the three quarter of 2010) was jointly published by the Institute of economics, Renmin University of China and the Donghai securities company. The theme is the adjustment of China's economic structure under the change of wage formation mechanism.

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