(Jiangxi New Materials Co., Ltd.)

The “China Economic 50 Forum 2017 Annual Meeting” with the theme of “Deepening Supply-side Structural Reform – Property Rights, Power, and Quality” was held in Beijing on the 15th. Famous experts such as Han Jun, deputy director of the Office of the Central Financial and Economic Leading Group, Wang Yiming, deputy director of the Development Research Center of the State Council, Cai Fang, vice president of the Chinese Academy of Social Sciences, and Wu Jinglian, a researcher at the Development Research Center of the State Council, delivered keynote speeches around the theme of the conference.

Han Jun, Deputy Director of the Office of the Central Financial and Economic Leading Group:

Rural collective commercial construction land

Entering the market will release huge dividends

To activate the endogenous development momentum of agriculture and rural areas, the key to this aspect is to fight two tough battles. The first is to activate the market, mainly by deepening the reform of the price formation mechanism and purchase and storage system for important agricultural products such as grain. The other is the activation factor, which is mainly to deepen the reform of rural land and collective property rights systems. This is the highlight.

The activation factor is to first release the rural land contract management rights. Now it is proposed to separate ownership, contract rights and management rights. The key is to release the land management rights. What needs to be solved most is rural construction land. In recent years, some new industries such as rural e-commerce, leisure agriculture, and rural tourism have developed rapidly, and a boom in people returning to their hometowns to start businesses has quietly emerged. Back then, township and village enterprises could develop because there was still land available, and farmers could use their own land to develop enterprises. But the current problem is that in new forms of development, construction land quotas cannot be distributed to rural areas, and the reasonable needs of rural areas cannot be met. We have done a lot of research on this issue, and our basic judgment is that the reform of rural collective commercial construction land entering the market will release huge dividends.

The reform of collective commercial construction land entering the market has been extended to 33 counties. For example, the first entry into the market was in Deqing. We did research in Deqing and found that there are only 45 pieces of land on the market now, less than 400 acres, and the transaction volume is One hundred million. There are 1,118 pieces of 10,000 acres of collective commercial construction land in this county that can be put on the market next. If all of them are put on the market, it can bring very considerable benefits. The most important thing is that it can inject huge impetus into the development of local rural new industries and new formats. Rural areas rely on new industries and new formats to acquire land, just like the development of township enterprises in the past. .

The next step of reform is to encourage rural collective economic organizations to directly participate in land development under the premise of many plans, or to participate in the development of existing construction land in various forms such as joint ventures, joint construction, and shareholding, so that farmers can share more of the land. value-added income. Combining industrial transformation and new urbanization, it is necessary to accelerate the high-end development of architectural forms and attached industries on collective land, which can inject huge impetus into rural development.

Activating factors, there is also an important background here, that is, the power to support farmers’ income increase is gradually weakening. At present, the growth of migrant workers is sluggish, and it is increasingly difficult to increase farmers’ income by increasing the number of people employed outside the country. There is a lot of room and potential for farmers to switch to new industries and new formats on-site.

Activating factors will promote the emergence of new industries and new business formats in rural areas. We propose that we should use the same energy as the development of township and village enterprises to support the development of new rural industries and new business formats and return to hometowns to start businesses. Document No. 1 of 2017 proposed some policies in terms of land and finance, such as Document No. 1 span> It is proposed to allow economical construction land through village renovation and other methods, and adopt methods such as shareholding and joint ventures to focus on supporting the development of rural leisure, tourism, elderly care and other industries and rural tertiary industry containers, but illegal development of real estate is strictly prohibitedReal estate Or build a private manor club.

Promoting the structural reform of the agricultural supply side is inseparable from the confirmation and protection of farmers’ three rights to land. The three rights refer to the right to contract land, the right to use homestead land, and the right to distribute collective income. A general policy direction in this regard, the first is to confirm rights, and now the registration and certification of contracted areas are being accelerated. The second is empowerment, supporting and guiding farmers to voluntarily transfer land contract rights for a fee in accordance with the law. The third is to protect rights and safeguard the three rights of farmers who have settled in cities.�� factors have made our current risks more prominent. The first is the slowdown in growth and the weakening of corporate balance sheets, which will obviously increase financial risks. Second, the biggest challenge in the slowdown in growth today is the conversion of old and new driving forces. How to deal with these financial assets in the past when the old driving forces are gone, which will cause some financial risks.

Of course, we also have some sequelae caused by the large-scale stimulus policies during the past global financial crisis, especially in terms of the leverage ratio of state-owned enterprises and the debt borrowing of local governments. The reaction was relatively concentrated. Financial risks have always existed, but from a global perspective, China is probably the only major emerging market country that has not experienced systemic financial risks so far. There may be many specific reasons for this, but I think the most important ones are two. The first is that it has maintained rapid growth in the past, and many problems have been resolved through growth. The second very important factor is the government’s guarantee.

We are now encountering the same problems that many countries have encountered: rising leverage, declining productivity, and a significant shrinking of policy space.

How to solve this problem? I mainly consider three aspects. The first is the issue of short-term growth and long-term growth. In the process of pursuing economic growth, many of the policies we adopted not only were not conducive to long-term growth but also accumulated a lot of risks when ensuring short-term growth. Therefore, I suggest that we should relax in the short term, so that we can truly achieve long-term sustainable growth.

Second, we do not have a systematic regulatory framework at the macro level. If there are problems, we rely on fiscal policy and monetary issues to solve them. However, this situation is now unsustainable. Simply put, if we want to reform the regulatory framework now, a very important task seems to be to establish a macro-prudential regulatory framework.

The last one still depends on the relationship between stability and risk. A direct benefit of our past government’s guarantee was that we never saw corporate bankruptcies or debt defaults. But in fact we all know that the government is behind all the problems, which puts a lot of pressure on the government.

　The decision of the Central Economic Work Conference mentioned that risk points should be released. Risk point release is a very important task for us to maintain long-term stability. But we have always said in the past that it seems to be difficult to do. One of the issues I am most concerned about is whether zombie companies can be eliminated smoothly and quickly. If this problem is not solved, the problem of financial risks cannot be solved, and it will be almost impossible to improve the efficiency of financial resources.

(Original title: China Economic 50 Forum 2017 Annual Meeting held)

(Editor: DF155)