Latest News:  
Beijing   Cloudy    29 / 20   City Forecast


Defining future of China's economy

By Yang Limin (People's Daily Online)

16:50, September 01, 2011

Edited and translated by People's Daily Online

1) Accelerating the transformation of economic growth pattern

China should make greater efforts to accelerate the transformation of its economic growth pattern because a better pattern will help the country, which is in a golden period of development, maintain rapid and stable economic growth and promote the construction of a well-off society. Furthermore, China can draw on its experience in transforming the economic growth pattern to deepen reforms to the administrative system.

China used to promote economic development mainly by increasing the supply, but it is now making active efforts to develop a consumption-driven growth pattern.

Development is the most important principle and the key to solving all problems facing China. At present, China is in a difficult situation where its domestic consumption demand grows slower than production capacity. In other words, the Chinese people's material and cultural needs grow slower than the country's supply capacity, making the total supply far greater than total demand.

Therefore, to adhere to the principal line of accelerating the transformation of the economic development pattern, governments at all levels should first change the conventional ways to promote economic development that focus on increasing supply rather than boosting consumption. To achieve the change, the governments must alter the priorities in the work of promoting economic development.

Instead of focusing merely on introducing foreign investments, increasing investments, expanding production and developing industry, the government must shift its priority to boosting employment, increasing income of the masses, perfecting public services, improving the consumption environment and developing the service sector. Certainly, the priorities of various levels of government should be varied.

2. Promoting coordinated development of different regions

The issue of China's imbalanced regional development lies in neither the imbalance in gross economic output of different regions nor the difference in the pace of development for different regions but rather the overly wide gap in the income of rural and urban residents as well as the levels of public services and infrastructure in different regions.

To promote the coordinated development of different regions and narrow the gap in the income of residents, public services and infrastructure, China should take measures in four aspects:

First, China needs to support the economic development of special regions and "expand the lowest common denominator" as much as possible. The special regions mainly mean China's western regions, including Tibet, Xinjiang and other western minority regions. They also mean China's old revolutionary bases, other minority regions, border regions and poverty-stricken regions.

Second, China needs to promote the migration of population in an orderly fashion to places with relatively developed economies, more jobs and relatively high incomes. China has lifted the ban on movements of labor forces, but still does not allow non-labor forces to live with their labor force family members in their working places. This institutional obstacle is an important reason for the large income gaps between regions and China must make up its mind to get rid of it as soon as possible.

Third, China needs to make more efforts to balance the financial transfer payments. Agricultural product regions and ecological function regions will not be able to narrow the resident income and public service gaps between themselves and other regions by only their own efforts.

Fourth, China needs to accelerate the implementation of the income distribution system. If we think the large income gaps of public servants or teachers between different regions are caused by the different economic development levels of the regions, we are evading the institutional contradictions and the problems of governmental work, and we will never be able to solve the large income gap issue.

Development is the foundation of the reform. However, we must also realize that the development cannot replace the reform and the reform is the impetus behind the development and also a key for solving the issues.

(The author is the deputy director of the Office for the Central Leading Group in Economic and Financial Affairs)


Leave your comment1 comments

  1. Name

Canada at 2011-09-0170.36.49.*
My comment below is not meant as a comment on this article, but more of a response to articles appearing on yesterdays website.Briefly, the Communist dream, drowned out by the capitalist ruling class & their social democratic minions, is that the productive capacity of each country rises to such a technologically advanced level there is sufficient abundance to meet all people’s needs, & they can take what they want from the public store. Health care, education, housing, food, income, pensions, all people’s needs, are provided by the State and people are secure from cradle to grave. Technology reduces the required labour. The creative genius unleashed as people are left with mostly free time will transform the world. Doctors, scientists, fashion designers, architects, teachers, scholars, artists, geologists, archeologists, paleontologists, artists, musicians, everyone, free to pursue their interests creating a beautiful and compassionate world that is a joy to live in, working cooperatively, collaboratively, to solve the country’s and world problems. In time it’s hoped the State would wither away, leaving administrators to perform necessary tasks. How to get there is the big practical question. I was in China not long after Mao’s death. His greatest achievement was meeting an enormous populations basic needs, health care, education, housing were free or available to all, no one appeared to be starving, cradle to grave security, but China was technologically backward & living standards were poor. Compare that to India, another country with a large population, where millions were scrounging the garbage dumps for food, no basic needs were provided, life was intolerable. The leader[ship] that came after Mao chose a different path, a mixed economy, & that inevitably created a bourgeoisie & income disparities. To build a technologically advanced society China needed foreign currency to purchase the building blocks - technology, machinery, equipment, natural resources, oil, etc. from the capitalist world. A mixed economy is a delicate balancing act, made extremely difficult as the capitalist ruling class in Western countries is like sharks circling to destroy the pursuit of an egalitarian society; money is needed for defense to prevent the invasion and occupation of China by NATO countries. We’ve seen the capitalist ruling class in Western countries have no shortage of money for bombs to destroy Libya under the fig leaf of a moral humanitarian mission to protect civilians. The hypocrisy is evident as had those billions been spent on food to protect civilians in Somalia, thousands wouldn’t be dying of starvation. It’s extremely difficult to achieve the Communist dream in one country, there are so many external & internal pressures, & contradictions, to be overcome, so I firmly believe that a Vanguard is necessary to lead if the dream is to be achieved. The history & culture of countries is different, so every country needs to follow their own path, it’s a rocky road ahead. Communists need to sell the dream so it turns into reality. The future & survival of mankind depends on it.

Selections for you

  1. Sharapova out of U.S. Open

  2. Mudslide halts bullet trains in E China

  3. Fake Tian'anmen discovered in NW China

  4. Nadal, Murray, Del Potro reach U.S. Open third round

Most Popular

What's happening in China

Young students becoming fitter

  1. Jailed ex-exec points finger at official
  2. Guangdong gets tougher with drunken drivers
  3. Police dog patrols lead to fewer crimes
  4. Beijing plans to charge tolls on some roads
  5. Despite obesity, Chinese turn out to be healthier

PD Online Data

  1. Beihai,Guangxi Province
  2. Taiwan
  3. Bamei
  4. Macao
  5. Hangzhou