The direction of China’s economic development: “A hero is judged by the yield per acre”

If you want to say what policy will have the greatest guiding effect on China’s economy in 2017? Then many people will definitely Blunted out: “Supply-side reform”. It aims to start from the supply and production side, promote economic development by liberating productivity, improving competitiveness, and eliminating backward production capacity. This great policy came from the hands of the national think tank – Liu He.

Liu He, who is he? He is currently a member of the Political Bureau of the CPC Central Committee and director of the Office of the Central Financial and Economic Leading Group.

On January 24, Liu He’s speech at the Davos annual meeting elaborated on China’s top-level design .

He said,China’s economy has shifted from a stage of rapid growth to a stage of high-quality development. In the next few years, China’s macroeconomic policies, structural policies, reform policies, and social policies will all focus on the general requirements of high-quality development.

“Judge heroes based on yield per mu”, Zhejiang Province’s first pilot project

Before the words were finished, Xinhua News Agency reported on the 28th that the Zhejiang Provincial Government recently issued the “About Deepening the “Mu” “Guiding Opinions on the Reform of “All About Heroes”.

Reports say that by 2020, Zhejiang will carry out evaluations on all industrial enterprises and other entities in the province based on the benefits of production per mu. Physical examination, the results of the physical examination affect the allocation of various resource elements of the enterprise.

Any industry is in this wave

Supply-side reform and administrative compulsory reduction of overcapacity and inventory are only the initial stages of China’s industrial structural adjustment , the big hand has always been there. This is heavy and painful for many enterprises. But for the government, it takes too long to rely on the market to clear it. To borrow a sentence written by Comrade Liu He in 1998: ” We must deeply realize that if the Chinese economy does not seize the good opportunity for growth and solve the historical task of structural reform as quickly as possible before the arrival of an aging population society, we may never find such an opportunity again.”

Looking back at the surge in silicone prices in 2017, it seems worth pondering. Since 2009, China’s organic silicone industry has experienced a wave of production expansion. Subsequently, the industry has experienced overcapacity for six consecutive years, and companies have continued to suffer losses. In 2014, the organic silicone industry began to voluntarily reduce overcapacity. In September 2016, the stage goal was achieved, welcoming the reversal of the economy, and continued until 2017. .

If the unilateral price decline of organic silicon officially ended in the third quarter of 2016, it was spontaneously initiated by the company. The result of overcapacity reduction is more about the adjustment of the market mechanism. So the sharp rise in silicone prices in the third quarter of 2017 can be said to be mainly affected by the adjustment of industrial structure, supply-side reform, environmental protection overcapacity reduction, and policy overcapacity reduction, resulting in The cost of raw materials and energy has risen, construction has been hindered, and prices have risen.

In 2017, China’s industrial structural reform has achieved initial results. In 2018, the Chinese market is also likely to Along with the continuous market adjustment. Not only silicone companies, but also any industry is in this wave.

Seize the opportunity and look forward to the future

Today, the economies of the United States, Europe and Japan have recovered. China’s economic project income has reached 2015 The peak in years. The international trade surplus has also returned to a historically high area. Foreign exchange reserves have once again stood above 3 trillion US dollars. It can be said that the external environment has created rare and historic opportunities for China.

At this time, China has passed the turning point of the great era, with excess low-end production capacity and natural resources. The huge amount of debt is no longer sustainable. For the government, only by allowing the mandatory industrial restructuring to fully play its role and accelerating the creation of soil for more excellent small and medium-sized enterprises to grow healthily can we stimulate the vitality of the market and cope with this wave of globalization. Economic opportunities and challenges; for enterprises, only by continuous innovation, refinement and strength can they have a healthy physical future.

The Asian financial crisis in 1998 and the global financial crisis in 2008, it seems that as long as the year is related to 8, it will It makes people feel heartbroken. And 2018 is destined to not be an ordinary year. It is expected that many industries will face a new wave of reshuffle. But more, we can be optimistic about the Chinese market in 2018 and look forward to it. A healthy real economic system.

The opportunities and challenges of the economy; for enterprises, only by constantly innovating, striving for refinement, and striving for strength can they have a healthy physical future.

The Asian financial crisis in 1998 and the global financial crisis in 2008, it seems that as long as the year is related to 8, it will It makes people feel heartbroken. And 2018 is destined to not be an ordinary year. It is expected that many industries will face a new wave of reshuffle. But more, we can be optimistic about the Chinese market in 2018 and look forward to it. A healthy real economic system.