Home » The full text of Huang Qifan’s speech: I look at the government and the market, state-owned and private enterprises|Understanding the China Bay Area Dialogue

The full text of Huang Qifan’s speech: I look at the government and the market, state-owned and private enterprises|Understanding the China Bay Area Dialogue

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The full text of Huang Qifan’s speech: I look at the government and the market, state-owned and private enterprises|Understanding the China Bay Area Dialogue

Reporter Su Li

On April 19, the “Understanding China·Bay Area Dialogue” special forum opened in Guangzhou. At the luncheon speech event of the special forum, Huang Qifan, executive vice chairman of the Academic Committee of the International Innovation Association and former mayor of Chongqing, delivered a speech on the theme of “China’s high-quality Strategic Choices for Development”. The following is the full text of the speech (arranged according to the content of the on-site speech, with deletions).

Strategic choice for China’s high-quality development

It is a pleasure to communicate with you during the lunch meeting. High-quality development is our primary task in building a modern socialist country in an all-round way. Without a solid material foundation, it is impossible to build a powerful modern socialist country in an all-round way. China is the largest developing country in the world, and the problem of unbalanced and inadequate development is still very prominent. We can’t wait or rush, we must keep our feet on the ground and make steady progress. Focusing on promoting high-quality development and building a new development pattern, the report of the 20th National Congress of the Communist Party of China has arranged five key tasks. Taking this opportunity, I would like to discuss the relevant content involved in the report with online and offline international friends and guests. share for your reference.

one

comprehensively deepen reform

Build a high-level socialist market economic system

The report of the 20th National Congress of the Communist Party of China emphasized building a high-level socialist market economic system. What is high level? In my understanding, the core is to properly handle two types of issues, namely the relationship between the government and the market, and the relationship between state-owned and private enterprises, so as to amplify the advantages and dividends of China as a super-large single market.

First, handle the relationship between the government and the market well. In my opinion, it is emphatically reflected in the two sentences in the report of the 20th National Congress of the Communist Party of China: “Build a unified national market, deepen the market-oriented reform of factors, and build a high-standard market system” “Improve property rights protection, market access, fair competition, social credit and other basic systems of the market economy”. Through the improvement of these basic market systems, the reform of the economic system and other aspects of the system should be promoted at a higher starting point, higher level, and higher goals, and the creation of a stable, fair, transparent and predictable business environment should be accelerated, and market transaction costs should be further reduced. , and then continue to promote efficient and smooth domestic market and scale expansion. Of course, under the conditions of a socialist market economy, the government is not the “night watchman” in a laissez-faire market economy. To better play the role of the government is to make a difference in maintaining the market, making up for the market, and developing the market, so as to promote the development of the government. Create an efficient market.

Second, handle the relationship between state-owned and private enterprises. The report of the 20th National Congress of the Communist Party of China once again emphasized two “unswerving” – unswervingly consolidating and developing the public sector of the economy, unswervingly encouraging, supporting, and guiding the non-public sector of the economy. The contribution of the non-public economy to the national economy is summarized as “56789”. In recent years, the added value of the non-public economy has accounted for about 60% of GDP. Can this proportion rise further? There is a problem of cognition here. The added value of any economy can be divided into the added value generated by government actions and the added value generated by the business activities of market entities according to the main body of activity. Among the market entities, they can be further divided into public ownership entities and non-princess entities. Under normal circumstances, the government’s tax revenue accounts for about 20% of GDP. After government expenditures, these taxes roughly form an added value of about 15% of the total GDP in the current period. Then the added value generated by the activities of market players is about About 85%.

Specific to the Chinese economy, non-principal entities currently account for roughly 60% of GDP. Unswervingly consolidating and developing the public sector of the economy means that the added value generated by public sector enterprises must account for a certain proportion of GDP, roughly around 25%. In this way, a pattern of 15:25:60 of the economic contributions of the three types of economic entities, namely the government, public entities, and non-public enterprises, has been roughly formed. For society as a whole, “56789” not only describes the contribution of the non-public economy, but also accurately depicts the structural characteristics of the market subject of China’s socialist market economy; “15:25:60” is not only reasonable, but also stable. In this way, the combined economic contribution of the government and public enterprises accounts for 40%, which can effectively regulate the operation of the economy, while the economic contribution of non-public enterprises accounts for 60%, which is conducive to maintaining economic vitality, maintaining employment, and promoting innovation.

two

Adhere to the real economy as the focus

Accelerate the construction of a modern industrial system

The 20th National Congress of the Communist Party of China emphasized that we must persist in focusing on the real economy for economic development, promote new industrialization, and accelerate the construction of a manufacturing power, a quality power, a space power, a transportation power, a network power, and a digital China. The manufacturing industry is the backbone of the industry, the foundation of the economy, and the guarantee of people’s livelihood. The high-quality development of the manufacturing industry is a key link in my country’s construction of a modern industrial system. From the perspective of the law of economic development, there are three basic judgments as follows:

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First, as the country enters the process of economic development into a developed country, the proportion of manufacturing industry will gradually decrease, but it should not be too fast and too early. At least it should wait until the per capita GDP of the whole country exceeds 15,000 US dollars before gradually decreasing.

Second, compared to China’s national conditions, the proportion of manufacturing industry should not be lower than 25%. In addition to mining, electric heating, water and construction, the entire secondary industry should remain above 35% by 2035.

Third, the proportion of productive services related to the manufacturing industry, such as research and development, brand design, supply chain logistics, industrial chain finance, inspection and testing, and after-sales maintenance, in the entire service industry will gradually increase from the current 20%-30% to 50%. %-60%. This requires further investment in research and development. If the R&D investment can exceed 3%-4% of the manufacturing output value, the “0 to 1” basic research investment accounts for more than 20% of the total R&D investment, and the manufacturing unicorn enterprises account for more than 30% of the capital market market value, it will be It is a symbolic phenomenon of manufacturing power.

When these conditions are met, the added value of the real economy, with manufacturing + mining + construction + producer services as the main components, will account for about 65% of GDP. At this time, we can say that China has a solid foundation for transforming from a manufacturing power to a manufacturing power.

three

Based on my country’s national conditions

Comprehensively promote rural revitalization

The report of the 20th National Congress of the Communist Party of China pointed out that the most arduous and arduous task of building a modern socialist country in an all-round way is still in the countryside.

But China has a basic national condition, which is the Hu Huanyong line. According to Hu Huanyong’s (1935) research, the line from Aihui, Heilongjiang to Tengchong, Yunnan roughly divides China’s territory into two parts in terms of population. But it only accounts for 4% of the total population; on the other side is the “small bridge and flowing water family”, only 36% of the country’s land, but gathers another 96% of the population. The population and geographic characteristics of China depicted by Hu Huanyong’s line are unique in the world. The root cause comes from China’s unique topography and climate characteristics. This topographical and climatic division determines the geographical distribution pattern of the population and also affects the performance of economic development. On the basis of respecting this basic national condition, we should use more social, economic, and technological means to break the constraints of the Hu Huanyong Line on the coordinated development of urban and rural areas.

In 2021, my country’s rural permanent population will be 510 million, and the added value of the primary industry will be 8.3 trillion yuan (accounting for 7.3% of GDP). The vast majority of these 510 million people are on the southeast side of the Hu Huanyong line, which is the main battlefield for rural revitalization. Two key points can be grasped:

One is to turn the primary industry of agriculture into a “sixth industry”. The so-called sixth industry is to follow the idea of ​​”1+2+3″, empower the primary industry with the secondary industry and the tertiary industry, and form a high-level industrial chain supply chain from “pastoral” to “dining table”.

China’s agricultural development model is different from that of the United States. The United States has a vast land and sparse population, and it is a large-scale agriculture under large-scale large-scale farms and large capital. China’s outstanding human-land conflict determines that we have no conditions to develop American-style large-scale farmers’ agriculture. Of course, we cannot rule out further institutional innovations to engage in moderate-scale operations. But in any case, there is no way out if we continue to stay stuck in the agricultural field and talk about agriculture in terms of agriculture. The way out lies in the development of agricultural deep-processing industry and agriculture-related service industry.

After years of reform, innovation and development, we already have the material and technical conditions to transform agriculture with modern industry and modern service industry. Some places have combined the development of characteristic agriculture such as “one village, one product” with cold chain logistics and live broadcast e-commerce, and have explored a successful model that is rooted in agriculture and rural areas and extends to all parts of the country. This is to operate agriculture with industrial thinking and Internet thinking.

The second is to deepen agricultural and rural reforms and increase farmers’ property income. At present, 97% of the annual income of Chinese farmers comes from labor income, and there is almost no property income. In August 2019, the new “Land Management Law” was passed and promulgated, which legally clarified that the rural collective operating construction land that was restricted from transfer and lease in the past can be leased, transferred and transferred under the premise of conforming to the plan , donated, mortgaged use rights, the same land, the same rights, the same rights and the same price as state-owned land. In March 2020, the Central Office of the Central Committee of the Communist Party of China issued the “Opinions of the Central Committee of the Communist Party of China and the State Council on Building a More Complete System and Mechanism for the Market-oriented Allocation of Factors”, further proposing to “deepen the pilot reform of the rural homestead system, further promote the consolidation of construction land, and improve the expansion of urban and rural construction land. It is also necessary to “explore the establishment of a national construction land and supplementary cross-regional trading mechanism for cultivated land indicators”. The basic logic of these laws and policies is to realize the lawful and orderly flow of land resources by revitalizing the “three lands” in rural areas, and create conditions for increasing farmers’ property income. The property income brought by farmers and rural areas due to the “three lands” will Gradually increasing, the gap between urban and rural areas will also be greatly improved.

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Four

Adhere to a global perspective

Promote coordinated regional development

The report of the 20th National Congress of the Communist Party of China emphasized the establishment of a coordinated development pattern for large, medium and small cities based on urban agglomerations and metropolitan areas. The focus of coordinated regional economic development is to activate the power source for the development of urban agglomerations and metropolitan circles.

From the perspective of economic geography, cities and urban agglomerations are often formed first in places with convenient transportation, humid climate and good trade, thus establishing the basic outline of the economic territory. Two-thirds of China’s border is land, and one-third is sea. A thousand years ago, due to the connection of the land Silk Road, many “big cities” emerged from the central and western parts of China to the countries along the Silk Road. The most representative hub cities are Luoyang, Chang’an, Samarkand, Baghdad, Damascus, Constantinople, Athens and Rome. However, since the era of great navigation in the 15th century, marine civilization has begun to rise, and marine transportation has gradually occupied a dominant position in the global transportation landscape. As a result, a global division of labor and economic and trade order based on the marine transportation system have been formed. It is also during the past few hundred years that the marine economy has dominated the ocean economy. The land trade routes that originally spanned the Eurasian continent and used camels and horse teams as carriers for thousands of years were gradually replaced by sea transportation. The land exchanges between Asia basically came to a standstill. Some once prosperous metropolises are gradually submerged in the dust and smoke of history.

However, since the “One Belt, One Road” initiative was put forward in 2013, this pattern is quietly changing, especially the opening and operation of the China-Europe Railway Express, which has turned the almost interrupted Eurasian Continental Bridge into an overland Silk Road among countries along the route. . The China-Europe Railway Express has formed a new all-weather, large-capacity, green and low-carbon transportation channel outside the maritime transportation system. Accelerate perfection.

If the modernization of the past 300 years is dominated by ocean trade, sea power economy, and seaport cities, then driven by the “Belt and Road” initiative, there will be ocean trade and land trade, sea power economy and land power economy, and seaport cities. A new path of modernization and a new territory for cities and dry port cities to fly together. If we say which city was along the coast and had a port in the past, which city was the frontier of opening up and had a huge advantage in opening up; if the goods in the inland area were to be exported to Europe, they had to be transported to the coastal ports before shipping by sea. Now, the opening of the transnational trains has brought the inland cities along the line to the frontier of opening up. Goods can go through export procedures at their doorsteps, and they have a new window of opening up to the outside world, a dry port that can connect to the world. Some important hub cities such as Chongqing, Chengdu, Xi’an, Zhengzhou and other places will bring more people flow, business flow, capital flow, and information flow due to the logistics convergence function of dry ports, which will further drive processing trade, advanced manufacturing, insurance logistics, and financial services. After the industry rises and gathers, the upstream and downstream industrial chains follow up and settle down, forming an industrial cluster of a certain scale. With the prosperity of the industry and the agglomeration of the population, the urban economy has accelerated and a new dry port city has been formed.

At present, among the more than 6 trillion U.S. dollars of import and export trade between China and the world each year, nearly 4 trillion U.S. dollars are conducted with ASEAN, the European Union, the Middle East, Japan, South Korea, and Hong Kong, Macao and Taiwan. The current mode of transportation for these trades Before the implementation of the “Belt and Road” initiative, except for air freight, 100% of goods were shipped by sea. In the future, under the impetus of the “Belt and Road” initiative, it is entirely possible that nearly 2 trillion US dollars of goods will be transported by land. From this perspective, based on the above-mentioned new territory of transportation and trade in the future, the central and western regions will build the Chengdu-Chongqing twin-city economic circle, the Xi’an urban agglomeration, the Central Plains urban agglomeration, the Wuhan urban agglomeration and even the Kunming urban agglomeration. High-quality development in the central and western regions With a new source of power, a new pattern of coordinated development between small and medium-sized cities in the central and western regions and large cities will naturally come into being.China’s urban agglomeration metropolitan area will present a new pattern driven by seaport cities and inland port cities

five

Promote high-level opening up

Enhance the linkage effect of internal and external double circulation

The 20th National Congress of the Communist Party of China emphasized the promotion of high-level opening up, and proposed to rely on the advantages of my country’s ultra-large-scale market, attract global resource elements through the domestic cycle, enhance the linkage effect of the two resources in the domestic and international markets, and improve the quality and level of trade and investment cooperation. To this end, tasks in five areas were deployed:

The first is to focus on the promotion of institutional opening to penetrate the internal and external circulation. To make China’s ultra-large-scale single market a strong gravitational field for global factor resources, it is necessary to create a market-oriented, legalized and internationalized business environment, so that the internal circulation and the external circulation can be effectively connected. On the one hand, it is necessary to focus on the integration of domestic and foreign trade, and promote the integration of domestic and foreign trade supervision systems, business qualifications, quality standards, inspection and quarantine, certification and accreditation, etc., to achieve the same production line, same standard and same quality. Support the integrated operation of domestic and foreign trade of market players, and promote the integrated development of the domestic and foreign trade industrial chain and supply chain. On the other hand, around the long-standing shortcomings of my country’s opening up to the outside world, such as financial services, education, medical care, health care, and the digital economy, further expand market access, and continue to reasonably reduce the negative list of foreign investment access. At the same time, we must continue to deepen reforms in terms of national treatment, fair competition, intellectual property rights, environmental protection, government procurement, and public services, and especially take new steps in the legalization of government behavior to protect the rights and interests of foreign investors in accordance with the law.

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The second is to build a strong trading country with a focus on digital trade in service trade. China is already the world‘s largest trader in goods. To become a trade powerhouse, it must make efforts in service trade and digital trade. In recent years, my country’s status in the global service trade has been continuously improved, and the scale of service trade has maintained the second place in the world for many years in a row. However, compared with the industry structure of high value-added service trade in developed countries and the development speed of my country’s trade in goods over the past 40 years, there are problems such as large deficits and low structural benefits in China’s service trade. The driving advantage has not been brought into play. It is foreseeable that in the future, the proportion of my country’s service trade in the total trade volume will gradually increase, and the proportion of digital trade in service trade will also gradually increase. Service trade, digital trade and trade in goods will jointly support the construction of China’s trade power.

The third is to promote the all-round opening up of the whole region with high-quality joint construction of the “Belt and Road”. It is necessary to accelerate the formation of an international economic and trade cooperation channel based on the interconnection of transportation infrastructure, supported by major hubs along the route, and deeply integrated with industrial and supply chains. In particular, it is necessary to consider optimizing and adjusting the capacity layout of transnational trains to make new and greater contributions to driving the all-round opening up of the whole region. For example, in addition to the two strategic directions of going north (two passages in the east and middle) and going west (the west passage), there is also a large passage going south. One of them is the New Land-Sea Corridor in the west; the other is the southbound corridor facing the Indochina Peninsula based on the three major corridors of China-Laos, China-Vietnam, and China-Myanmar. While linking the Silk Road Economic Belt and the 21st Century Maritime Silk Road, these passages will also drive the opening up of related areas to a new level. In addition, all localities can also cooperate with countries and regions along the “Belt and Road” to build the Silk Road in the Air and the Silk Road on the Internet according to their own resource endowment and industrial conditions, so as to improve the level and level of opening up.

The fourth is to implement the strategy of “free trade port + free trade pilot zone + high-standard free trade zone network”. In recent years, developed economies such as the United States, Japan and Europe are planning to go beyond the WTO’s high-standard economic and trade rules. At the same time, the RCEP with China’s participation has been successfully signed, and the China-EU CAI has completed negotiations and has formally applied to join the CPTPP and DEPA. This requires free trade ports and pilot free trade zones to carry out innovative exploration and stress testing with greater efforts, higher standards, and more practical measures, focusing on high-level economic and trade rules to carry out first-hand trials, form breakthroughs, and accelerate market creation The rule of law and the internationalized business environment will explore new experience and form a new model for China’s participation in the negotiation of new international economic and trade rules and global economic governance.

The fifth is to deeply participate in the global industrial division of labor and cooperation through “RMB internationalization + high-quality going global”. According to SWIFT data, the RMB’s international payment share has surpassed the Japanese Yen to become the fourth payment currency in the world, and will further increase to 3.2% in January 2022, a record high. According to the official currency composition of foreign exchange reserves (COFER) data released by the International Monetary Fund (IMF), the RMB will rank fifth among the world‘s major reserve currencies in the first quarter of 2022. It is estimated that in the next 15 years, as China’s cross-border trade, bulk material imports, and Chinese enterprises’ “going out” investment gradually implement settlement in RMB, the internationalization of the RMB will make significant progress.

The above five aspects are the basic support for promoting high-quality development and building a new development pattern, and are our strategic choice for entering a new journey of Chinese-style modernization.

thank you all!

[Nanfang Daily, Nanfang + Reporter]Su Li

Editor: Zheng Jianlong

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