Mao Yushi: China'S GDP Has Quality Problems.

In January 20th,

The following is an interview:

Chinese Entrepreneur: in 2010, China's GDP was 397983 billion yuan, calculated at comparable prices, an increase of 10.3% over the previous year. How can we evaluate the two digit growth rate?

Mao Yushi: China's GDP is of poor quality and has quality problems.

GDP is the total production of wealth, quality involves three aspects, the first distribution is not fair, so how much money is allocated; second, there is no inflation; third, whether it has destroyed the environment, how wealth is obtained, whether it has dug underground resources, resources have become money, resources are much less money, GDP is very high, the environment has deteriorated, and future generations need to spend a lot of money on governance, which is equal to borrowing money from future generations, these are GDP's quality problems.

Chinese Entrepreneur: how do you reform the above three aspects?

Mao Yushi: to carry out structural adjustment, "12th Five-Year" to solve structural problems, the total demand is too much to rely on external demand, then we need to adjust the exchange rate and allocate too much wealth to the government, the government or reduce taxes or increase public services. Environmental protection needs more effort to expand inflation.

Generally speaking, to adjust the structure and adjust the structure is not just a word, but to move the price, and the price can not be adjusted.

Chinese Entrepreneur: just now you mentioned unfair distribution of wealth, so do you think the reform of income distribution focuses on the first distribution or the two distribution?

Mao Yushi: mainly for the two distribution, the initial allocation is difficult to adjust, involving all aspects of social structure, and the two allocation is easier to implement.

Chinese Entrepreneur: we see that China has used administrative means to control inflation. Is that against it?

Mao Yushi: Yes, it is necessary to control inflation in a two pronged way. Both administrative and market means must be used at the same time. Now, administrative means are overly used. Inflation is generally a loss for the low-income group, and there may be some income for the high-income group. The debt side will take advantage of it, the creditor will suffer losses, the seller will take advantage of it, and the buyer will suffer losses. The general rule is that inflation should use administrative means to help low-income people, such as raising wages.

Raising interest rates is the most effective way to control inflation.

Chinese Entrepreneur: President Hu Jintao is visiting the US. The RMB exchange rate has attracted much attention. What kind of expectation do you have for RMB appreciation?

Mao Yushi: I always agree with appreciation. Now our exchange rate is harmful to the people. It is bad for the United States and bad for China. The appreciation of the renminbi can not be done at one time, because we do not know where the "bit" is.

Chinese Entrepreneur: do you agree with a gradual incremental appreciation?

Mao Yushi: I am in favor of a substantial step forward. Now, the zero point adjustment is not effective. Once 3%-5% is too late, if the tune is 30%, this may be overdone. I think less than 6 to 1 will be a reasonable interval.