It Is Very Stressful For China To Achieve The Goal Of "Two Times".

Why is the same pformation? China is a steady and fast development. And so far, China is still the only country without systemic financial crisis. Other pformation countries, whether they are socialist or non socialist countries, have suffered from economic collapse, stagnation and crisis. The frequency of the crisis is higher than that in 60s and 70s. What is the reason? The root cause of the problem is the same. Why is the effect different? The main pformation strategy is different.

To achieve the two goals of the eighteen big proposals, by 2020, the wages of the general workers will generally reach 800 to 1000 dollars, and the labor-intensive industries will inevitably lose their comparative advantages and will definitely turn outward.

Because of the size of China, many countries can benefit from this opportunity.

I believe that every southern country can achieve 20 or 30 years of rapid growth like China, from low income to middle income and even to high-income countries.

Before and after the founding of new China, the development strategy pursued by China was "10 years surpassing the UK and 15 years catching up with the United States", and wanted to develop and possess the same industry and technology as developed countries.

But those industries and technologies are the most advanced industries and the most advanced technology in the developed countries. They are the foundation of national defense security in developed countries. Will they allow those industries to be pferred to China unconditionally? These are capital intensive and large scale industries. In 50s, China's economy was extremely poor and its capital was extremely scarce, and there was no comparative advantage in these industries.

Economic development is very stagnant, the effect is very poor.

Since the reform and opening up in 1978, China has begun to use labor-intensive comparative advantages to develop labor-intensive industries and form competitive advantages. Therefore, China's products have great competitiveness in the domestic and international markets, and have occupied a large market and have very strong profitability.

After gaining profitability, capital began to accumulate, and after the accumulation of capital, industries began to escalate. Then, in the process of industrial upgrading, it was also based on China's comparative advantages, from the simple processing of extreme labor-intensive to the relatively intensive labor of technology and capital. In this process, because the industry is mature industry, China can take advantage of the later development advantages.

I think the biggest difference before and after the reform is this kind of difference.

Transformation.

We know that in 80s and 90s, when these former socialist countries or other developing countries began to pform, how did they pition from the planned economy to the market economy led by the government? The theory in 80s and 90s was the consensus formed by the so-called new socialism. The content of this consensus is that the development of the developing countries is not good because of too many government intervention resulting in various distortions, resulting in the misallocation of resources, resulting in the distortion of various incentive mechanisms and the poor social and economic development.

According to the shock therapy, all the industries that were originally developed have all collapsed, and those industries employ 20%, 30% or even 40% of the workers in many countries. They are all concentrated in cities, and they all collapse. There will be a large number of urban unemployed, unstable society and unstable politics. Any government in power will encounter such a situation unless it is willing to step down voluntarily. Otherwise, it will have to cancel the protection subsidy on the surface and introduce various protection subsidies on the ground.

These industries are all so-called advanced industries, which are related to national defense security. If these industries are abandoned, then the country will not have national defense safety.

For example, Russia is one of the eight strongest powers in the world today. That is, the defense industry of the eight major monopolies is still there. Therefore, from the perspective of national defense security, we must continue to subsidize it.

If it is necessary to give it a protective subsidy, the protection subsidy given by the state is actually less than the protective subsidy given when it is private.

Because state owned factory directors and managers are national employees, after they have made protective subsidies, they can not turn protection subsidies into their own income. At the same time, they should eat more and occupy more points.

After privatization, private bosses will tell the state that they can't live without subsidies, and that the more they want to protect their subsidies, the more they will put in their pockets.

Now there is a great deal of practical experience to prove that after the privatization of large state-owned enterprises in the Soviet Union, Eastern Europe and many other developing countries, no matter whether the reasons for stable employment or the reasons for national defense safety, if those enterprises can not be closed down, they will actually give more protection subsidies than the original ones, resulting in more inefficient and continuous crises.

Why did China solve the same problem, but it can maintain stability and rapid development? Because China's reform and opening up is emancipating the mind and seeking truth from facts. When the pformation began in 80s and 90s, there were a large number of state-owned enterprises, but we know that those countries have enterprises. If they do not give them protection subsidies, they will not survive. China is still an old way. It will continue to give protection subsidies to the pitional enterprises, maintain stability, continue to be state-owned, and control the scope of corruption and corruption.

In addition, liberalized access to industries that are in line with comparative advantage, many labour intensive industries that were in line with China's comparative advantage were formerly prohibited industries, and began to open after 1979.

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At present, these countries are still in low income, so long as the mentality is right, the way out is coming.

First, every stage of economic development must develop industries that are in line with comparative advantage.

Second, the government must play a positive role in guiding the situation. Any government can use limited resources, any government has limited executive capacity, concentrate its efforts on major events, and hurt its ten fingers.

China is very pragmatic in this regard, making the priority of limited resources and giving priority to specific areas, such as the construction of infrastructure in special economic zones or industrial parks, which can immediately create new growth points, create jobs and create exports, so that a spark can start a prairie fire.

In 2011, talking to the former Prime Minister of Ethiopia, in August 2011 he went to China to attract investment. In October, a boss in Dongguan led a delegation to visit esse. The salary cost was much lower than that of China. It decided to invest more than 8000 workers back home for 3 months on the spot, to invest in January in January, and to March product exports. In May, the company became the largest leather exporters of Essen, the number of employees hired by the end of the year was 2000 people, this enterprise let esse's

More than half of exports have gone up.

Before 2012, no one felt that Ethiopia could become a manufacturing base to enter the world market. After the success of the company, it changed other enterprises looking for investment in low wage countries, and felt that Ethiopia could do it.

In 2012, an enterprise came to Ethiopia, and 22 enterprises came in 2013.

Other African countries are also studying. The president of Rwanda came to us and wanted to develop the same economy. In the same way, a modern export factory for garment products was established in the capital of Rwanda.

Therefore, all the developing countries have a way out.

What does China's rapid development bring to South South cooperation? One is that China is now a middle-income country. At this stage of development, China's capital is beginning to go outside. In such a big country, the amount of capital going abroad is very large.

Now China's annual funding to other countries in the world is US $about 100000000000, and it is the second largest source of capital in the world. With the "one belt and one way" development strategy put forward by us now, the investment in these pport infrastructures and so on, China's capital will flow out.

The second very important thing is that China may give other developing countries the chance to succeed in pformation.

After the two World War, a few successful economies, from low income, middle income to high income, all have a special feature. They seize the opportunity of international labor intensive processing industry's international pfer. From 50s, Japan was developing a very traditional and labor-intensive industry, and seized the opportunity period of that window. Japan created a large number of jobs and exports and raised wages.