Service Economy Will Lead The Post Olympic Economy Of Beijing

When the preparatory work of Beijing Olympic Games is carried out in an orderly way, the external economic environment is experiencing severe fluctuations.

Global economic slowdown, high international oil prices, weak stock market...

How will these external factors affect the economic trend of Beijing in the post Olympic era?

How will Beijing face these economic development problems in the post Olympic era?

After the Olympic Games, the bottleneck of China's economic development is highlighted. Although the Olympic Games will bring a series of positive benefits to China's economy: the upgrading of the international image, the demand for economic growth and so on.

But entering the 2008, the fluctuation of world economy and the deeper problems of China's economic development are becoming more and more obvious, which will make China's economic operation face more complicated situation after the Olympic Games.

The central government has proposed to raise the price level of this year to around 4.8%. In January this year, the total consumer price level (CPI) rose by 7.1% compared with the same period in January. In February, the level of the consumer price index rose to 8.7%, all hitting a new high since 1997.

Some agencies predict that CPI will also be around 8% in March.

At that time, Ma Kai, director of the national development and Reform Commission, said that in addition to the structural drive, the price of land, labor and capital and the prices of energy and resource products were also rising. The cost of environmental damage was not included in the past, and now it should be included in the cost gradually. Therefore, the pressure of cost driven prices is also very high.

In 2007, China's agricultural economic growth was only 3.7% (less than 5% last year), and the service economy grew by 11.4% at the same time, which was lower than the 13.4% growth rate of the industrial economy (12.5% over the previous year).

More and more phenomena show that in the post Olympic era, the deep-seated contradictions in China's economic development are becoming increasingly prominent and the challenges are increasingly prominent.

Ji Zhu, director of the world economic research center of Beijing Technology and Business University, believes that practice has shown that China has been expanding its industrial economy in the face of tremendous economic growth, resources are more intense, the environment is deteriorating, the gap between the rich and the poor is widening, social unemployment has increased, and huge resources, environment and social costs have been paid.

The "Northeast Road" representing China's primary industrial economy has come to an end. The "Shenzhen road" representing the high industrial economy has ended with the outbreak of water pollution in Wuxi.

In 2008, China's economy will face double problems of slowing down and inflation, facing the trap of "stagflation".

In 2008, the world economic fluctuation may also increase.

According to the GDP report released by the US Department of Commerce, the US economic growth rate in 2007 was only 2.2%, the lowest growth rate in the US economy in the past five years.

At the beginning of the year, 2500 delegates attending the Davos world economic forum generally believed that the world economy would slow down this year, which was dragged down by the US economy.

Morgan Stanley, Asia head of investment bank Roach, even predicted that the US economy will have a significant recession. He said: "when American consumers are in trouble, they will have a serious impact on the world economy."

As a world factory, the external dependency of China's economy will be further enhanced in 2008. With the huge publicity effect of the Olympic Games, China's economy and the global economy will become more and more common.

In his report on the work of the government, Premier Wen Jiabao pointed out that the current global economic imbalance has been aggravated and the growth rate has slowed down. The impact of the US subprime mortgage crisis has spread, the US dollar has continued to depreciate, the grain prices in the international market have risen, and the prices of primary products such as petroleum have been running at a high level.

All of these may have adverse effects on China's economic development.

In order to speed up the adjustment of Beijing's economic structure, we must face the various development bottlenecks and difficulties.

In fact, when many places are still struggling to find the balance between development and consumption, Beijing, the Olympic City, has already taken the lead in solving problems. Through structural adjustment strategy, it has gone out of the "Beijing road" characterized by service economy.

In the process of industrialization in China, Beijing was once in the bewilderment of resources and output value.

Under the influence of many factors, such as the fragile carrying capacity of the environment, the functional requirements of the national capital and the international responsibility for the Olympic Games, the main line of service economy development is increasingly clear.

In 2001, the proportion of Beijing's service sector was 61%, which has reached 71%.

In 2006, Beijing's "11th Five-Year" plan, which has been ranked first in the development of regional development in 2006, has been ranked first in the modern manufacturing industry in the modern service industry. Beijing has made efforts to increase the proportion of service industry to developed countries (80%).

After the reform and opening up to the outside world, many parts of the country, including Beijing, are pushing ahead with structural adjustment and retreat from the two. This is a historical necessity. However, the preparations for the Olympic Games have effectively promoted the pace of economic restructuring in Beijing.

Chen Jian, vice president of the Beijing Olympic Economic Research Association, said that Beijing had put forward the slogan of "Green Olympics" from the beginning of the Olympic Games, which is of great practical significance to China, which has sustained rapid growth at the expense of resource consumption.

After eight stages of atmospheric control, the air quality in Beijing reaches two and two, which has increased from 50% years ago to 66%.

In order to realize the commitment to Green Olympics, Beijing has also formulated a timetable for the early withdrawal of heavy chemical industry. The heavy chemical industries represented by Shougang and coking plant in Beijing have successively relocated, and some factories with high energy consumption and high pollution have been shut down and pferred. The land that has been vacated has been used to introduce more multinational headquarters, financial, logistics and cultural and creative industries.

The adjustment of Beijing's seemingly economic structure is actually the pformation of the growth mode, the quality of economic development has been improved, and the total GDP has not risen.

In January 2006, the results of the national economic census in 2004 announced that the total GDP volume of Beijing has been increased by 41% after the revision of the Accounting Indicators of the service industry. The total number of GDP in the country has jumped to tenth place from the previous fifteenth, ranking the highest in the country.

Beijing's service economy has become a leader in the national green economy.

In July 2007, the National Bureau of Statistics announced that only 29 provinces (excluding Tibet) in Beijing completed the target task of reducing energy consumption per unit of GDP (GDP) by 4% in 2006. In that year, the index reached 5.25% in Beijing, far ahead of the rest of the country, while the growth rate of GDP in Beijing was 12.8% during the same period.

Ji Zhu said that practice has proved that the efficiency of resource utilization in Beijing is among the best.

Under the logic of the development of service economy, Beijing has explored a way to solve the problem of resource bottleneck and environmental pressure. At the same time, its efficiency and social efficiency (employment) supporting economic growth will enter a harmonious mechanism in the post Olympic era.

The service economy will lead the post Olympic economy of Beijing. When a society grows with human capital as its basic element, it will enter the era of service economy.

Compared with agricultural economy and industrial economy, the growth of service economy is more stable.

Theoretically, the supply and demand of the service economy is balanced. There should be no shortage and excess of traditional economy, and there will be no economic crisis characterized by overproduction.

Under the logic of the development of service economy, the resource environment and population problems of China's economy will be solved.

At present, the proportion of China's overall service industry is only about 30%, and the proportion of Beijing's service industry has reached the level of moderately developed countries, which will lead Beijing's post Olympic economy to shine brilliantly.

Statistics show that in 1997, Beijing's total trade in services amounted to US $10 billion 200 million and reached US $37 billion 470 million in 2006.

The total share of Beijing's trade in services in the whole country is getting higher and higher. With the total economic volume of about 4% of the country, Beijing has supported the total service trade level of about 19% of the country.

This ratio fully shows that the service industry in Beijing, especially the service trade, has been playing an important role in the whole country.

In view of the importance of trade in services to change the mode of economic growth and balance the trade structure, the central government has put service trade as the focus of development. The total volume of trade in services in 2010 has reached US $400 billion, which means that the annual growth rate will be around 20%.

This will provide huge space for Beijing to take advantage of the service industry in the future and enhance the international competitiveness of the service industry.

Chen Jian said that hosting the Olympic Games is most obvious for the service industry in a country and locality.

Beijing is using the opportunity of hosting the Olympic Games to explore and expand the new economic growth point.

Beijing has identified sports, tourism, convention and exhibition, cultural and creative industries as a new engine of economic growth in the post Olympic era, where sports and culture are placed first.

Wang Haiping, deputy director of the Beijing Municipal Development and Reform Commission, said that Beijing's holding the 2008 Olympic Games is a favorable opportunity to promote the development of the sports industry. Beijing encourages foreign investment in sports industry, and at the same time speeds up the development of sports brand business groups and major sports events.

Starting from 2007, Beijing's fiscal revenue will be invested five hundred million yuan a year as a guiding fund for the development of cultural and creative industries and sports industry.