The Central Economic Work Conference Raised This Strategic Base Point Again

The 13th five year plan is coming to an end, and the 14th five year plan is about to start. The central economic work conference has identified eight key tasks for China's economic development in 2021, one of which is to adhere to the strategic basis of expanding domestic demand.

According to the hot interpretation, the term "expanding domestic demand" has been repeatedly mentioned in this year's high-level meeting. At the meeting of the Standing Committee of the Political Bureau of the CPC Central Committee held on March 4, it was pointed out that "the resumption of work and production should be combined with the expansion of domestic demand to release the restrained and frozen consumption"; On September 8, General Secretary Xi Jinping stressed "firmly grasp the strategic basis of expanding domestic demand, protect and stimulate the vitality of market entities" at the national commendation meeting for fighting new crown pneumonia; The Fifth Plenary Session of the 19th Central Committee of the Communist Party of China proposed that "adhere to the strategic basis of expanding domestic demand, accelerate the cultivation of a complete domestic demand system, organically combine the implementation of the strategy of expanding domestic demand with deepening the structural reform of the supply side, and lead and create new demand with innovation driven and high-quality supply"

Why is the expansion of domestic demand mentioned frequently?

On April 10, 2020, General Secretary Xi Jinping made a profound analysis at the seventh meeting of the central financial and Economic Committee: "after China's reform and opening up, especially after China's accession to the WTO, China has formed a development model of" both ends of the market and resources (such as mineral resources) "and a" world factory ", which will help China seize the opportunity of economic globalization, rapidly enhance its economic strength and improve its economic strength People's life has played an important role. In recent years, economic globalization has encountered headwinds. This epidemic may aggravate the trend of anti globalization, and the tendency of domestic patronage of various countries is obviously on the rise. The external environment facing China's development may undergo major changes. "

In this case, it is necessary to put the development foothold at home, actively expand domestic demand and rely more on the domestic market to realize economic development. This is not only a necessary measure to deal with external uncertainty, but also an inevitable choice for China in the current development stage.

In fact, since the international financial crisis in 2008, China's economy has been transformed into a major domestic cycle. The ratio of current account surplus to GDP has dropped from 9.9% in 2007 to less than 1% now. The contribution rate of domestic demand to economic growth has exceeded 100% in seven years.

Forming a strong domestic market is an important support for building a new development pattern. The central economic work conference specifically mentioned "demand side management" in the requirements of building a new development pattern: we should firmly grasp the main line of supply side structural reform, pay attention to demand side management, break through the blocking points, make up the short board, and connect all aspects of production, distribution, circulation and consumption, so as to form a higher level dynamic balance of demand leading supply and supply creating demand, so as to improve the national economy The overall efficiency of the people's economic system.

It can be seen that the core of the new development pattern is the transformation and upgrading of industrial structure at the supply side and the expansion of domestic demand at the demand side, so as to improve the matching degree between supply and demand and promote smooth circulation.

The advantage of a big country's economy is that it can be recycled internally. With a population of 1.4 billion and a per capita GDP of more than 10000 US dollars, China is the largest and most potential consumer market in the world. The optimization and upgrading of residents' consumption, combined with modern science and technology and production mode, contains huge space for growth.

Then, how to expand domestic demand and form a higher level dynamic balance of demand pulling supply and supply creating demand?

The meeting also gave the "answer" - effective institutional arrangements must be made in reasonably guiding consumption, saving and investment.

Some experts have analyzed this, which shows that the central government is focusing on institutional issues and strengthening demand side management. Instead of simply stimulating consumption and exceeding consumption, we should start from the deep-seated contradictions such as income distribution and social security, and dredge up difficulties and blocking points with reform.

China has turned to the stage of high-quality development, and is in the critical period of transforming the development mode, optimizing the economic structure and transforming the driving force of growth. To build a new development pattern, we should organically combine the implementation of the strategy of expanding domestic demand with deepening the structural reform of the supply side, and lead and create new demand with innovation driven and high-quality supply. Promote consumption innovation, improve consumption quality through reform, and stimulate potential economic vitality.

"To expand consumption, the most fundamental is to promote employment, improve social security, optimize the structure of income distribution, expand the middle-income groups, and solidly promote common prosperity." "We should combine expanding consumption with improving people's quality of life." "We should reasonably increase public consumption and improve the efficiency of public services such as education, medical care, pension, child care and other public services." A series of specific arrangements let people not only feel the strength of the regulatory measures, but also feel the "temperature" of the regulatory measures.