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    How Is China's Economic Situation? Has The Manufacturing Industry Been "Bad Mouthing"? NDRC Responds To Six Hot Spots In The Market

    2019/7/19 10:22:00 0

    China's EconomyManufacturing Industry

    Recently, the phenomenon of the relocation of manufacturing enterprises attracted attention. In July 16, 2019, the national development and Reform Commission took stock of the macroeconomic situation in the past six months and gave a positive response to the hot issues of concern.

    Response 1: facing pressure and confidence

    The fundamentals of our economy have not changed for a long time.

    Data can accurately reflect the operation of the economy. Meng Wei, spokesman for the NDRC, explained the overall situation of China's economy from five aspects.

    "Overall, China's economy has a strong ability to self circulate, supply of industrial and agricultural products is adequate, and prices are stable. It has a strong foundation. It is expected that the overall price level will remain stable in the latter part of this year." Meng Wei said, but also to see, China's economic development is facing the domestic and international environment is still complicated. From the external environment, uncertainty has increased, the world economy and trade growth slowed down simultaneously, geopolitical instability and economic risks increased. From the internal environment, the solution to the long-standing structural contradictions in the country needs a process. The economic operation is facing new downward pressure, the real economic difficulties are still more, and there are still many shortcomings in the field of livelihood.

    Response two: well done peak summer energy security work

    Meng Wei said that the overall judgment is that during the peak summer season, the demand for coal electricity and oil and gas transportation will increase significantly, and there will still be pressure in some areas during the peak period. It is predicted that the peak value of electricity consumption will reach 24 billion 500 million kwh in the summer peak period, and the peak load will be higher than last year's peak.

    Response three: the relocation of manufacturing enterprises is a normal phenomenon.

    Size does not affect control.

    Recently, from time to time, the media reported that, influenced by Sino US economic and trade frictions, China's industrial chain and supply chain moved out, even throwing up the argument of "bad mouthing" Chinese manufacturing industry.

    "We should have an objective and rational analysis of this." Meng Wei responded positively that since the reform and opening up, the development of China's manufacturing industry has made remarkable achievements, with a large scale and complete categories, playing an important role in the division of labor in the international industry, not only contributing to the steady, healthy and sustainable development of China's economy, but also providing inexpensive products for all countries in the world, creating huge market space for enterprises in various countries.

    Meng Wei said that in recent years, with the division of labor in the international industry and the deep adjustment of the global industrial layout, China's manufacturing industry has entered a new stage of transformation and upgrading and towards a high quality development. In this process, it is normal for some enterprises to set up factories abroad. Through in-depth investigation and analysis, it is found that some enterprises are considering the change of factor prices, transferring to labor and environmental protection and other relatively low cost places. Some enterprises are actively developing the international market on the basis of their own development strategy, and of course, a very small number of enterprises are trying to avoid the impact of Sino US economic and trade frictions. However, it should be explained that the relocation of enterprises is not an easy task. Many factors need to be considered, including operation costs, industrial workers, supply chain matching, transportation and even manufacturing culture. Over the past two years, we have also noticed that some of the enterprises that have moved out of China have returned to the mainland because of their acclimatization. In recent research, we learned that many shoemaking enterprises from Dongguan have closed their factories in Southeast Asia for a variety of reasons and returned to domestic development.

    "From the perspective of our current situation, the scale of China's manufacturing industry's relocation is not large, and the impact of China's middle and low-end enterprises on China's economic growth, industrial upgrading, employment and other aspects is generally controllable." Meng Wei said, next step, the national development and Reform Commission will continue to promote the high quality development of the manufacturing industry with the relevant parties. The key is to give full play to the advantages of China's industrial system and the domestic market, focusing on the following four aspects of the policy, that is, we should deepen the market-oriented reform and expand the high level of opening up; strive to enhance the vitality of the micro body and release the potential of the domestic demand market; strive to make up the short board of the industrial chain and upgrade the industrial chain level; strive to build an international first-class business environment, and further enhance the attractiveness of the development of the manufacturing industry. I believe that with the implementation of a series of policy measures, the vast majority of enterprises will continue to stay in China for further development, and more enterprises will come to China to invest in the industry and seek new and greater development.

    Response four: market players exit

    It is the inevitable result of market mechanism survival of the fittest.

    On the morning of the 16 th, the NDRC issued a plan to accelerate the reform of the main body exit system, clarified the guiding ideology, basic principles and overall objectives of the reform of the main body withdrawal system in China, and put forward the system construction task for improving the various exit ways and related rights and interests protection mechanisms and supporting policies. What kind of consideration is the introduction of the plan? What's the point?

    "The withdrawal of market players is the inevitable result of the survival of the fittest market mechanism." Meng Wei said, at present, in the process of China's market withdrawal practice, the main problems are mainly the main channel of withdrawal is not smooth, the incentive and constraint mechanism is not perfect, the supporting measures are not perfect, and the exit cost is relatively high. Because of these reasons, the proportion of the exit entities is obviously low, which affects the development of the market mechanism and is not conducive to the effective allocation of resources. The timely introduction of the plan is of great significance for promoting market players' survival of the fittest, promoting the development of high quality economy and building a modern market economy system.

    First, it is conducive to deepening structural reforms on the supply side.

    Two, it helps to optimize the business environment.

    Three, it is conducive to improving the socialist market economic system.

    Meng Wei said that the next step, the NDRC will strengthen coordination and coordination with relevant departments, and work with relevant departments to carry out the tasks of the "plan" so as to ensure that more reform achievements can be achieved.

    Response five: in the first half of this year, 23 high-quality corporate bonds were approved.

    It is mainly used in the key areas of social and livelihood.

    In the first half of this year, the NDRC approved 112 RMB 364 billion 720 million yuan of corporate bonds, an increase of 131% over the same period last year, mainly due to the rapid growth in the approved scale of quality corporate bonds.

    Specifically, in the first half of this year, a total of 23 RMB $268 billion of quality corporate bonds were approved, mainly for transportation infrastructure, market-oriented bank debt to equity swap, venture capital investment, cultural tourism, sewage treatment, garbage disposal, industrial park development and operation, strategic emerging industries and other fields. Approval of general corporate bonds 51 yuan 52 billion 220 million yuan, mainly used for standardization of factories, shantytowns, affordable housing and other fields. The special corporate bonds, which are 38 yuan and 44 billion 500 million yuan, are mainly used in the construction of urban parking lots, underground integrated pipe corridors, green areas and social sectors.

    Response six: actively promoting construction

    Hainan free trade port related research work

    Meng Wei said that over the past year or so, the national development and Reform Commission (NDRC) has worked hard with the relevant authorities to carry out the "guiding opinions" in accordance with the unified deployment of the leading group of Hainan to comprehensively deepen reform and opening up. At present, the top-level design and the "1+N" policy system have been basically completed. "1" refers to this "guiding opinion". "N" refers to the implementation of innovation driven, international tourism consumption center, ecological civilization test area and other implementation programs. At the same time, the achievements of institutional innovation in commercial, investment, financial and other fields are constantly emerging, the market players are gathering fast, the open economy is growing significantly, and the social management risk prevention and control platform has been initially established. Regarding the exploration and construction of Hainan free trade port, the relevant parties are actively promoting relevant research work.

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