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A Scientific Approach

2017/4/20 3:00:00
【摘要】   In response to the continuing economic slowdown, the Chinese Government has made a series of moves to promote economic growth. The central bank cut interest rates and lowered the deposit reser...

  In response to the continuing economic slowdown, the Chinese Government has made a series of moves to promote economic growth. The central bank cut interest rates and lowered the deposit reserves rate, while quickening the pace of examining and approving basic construction projects and investing in programs supported by central finance. These measures add new vigor and hope to the acceleration of China’s economy. The growth rate for 2012 is likely to stay within a reasonable range of official predictions.

  Debt crises in Europe have plagued the global economic recovery and been a drag on China’s export industry. Economic growth in China has slowed for five quarters, and indications of an imminent slump are on the rise.
  China’s leadership has put a renewed focus on maintaining economic growth and preventing the inertia of a wider downturn. If the economic growth rate continues to fall, it will not only affect the government’s fiscal revenues and expenses such as public welfare, but also pose more difficulties to business operation due to lack of sufficient demand. Businesses’ losses will expand, leading to more staff cuts and increasing strains on employment and income.
  While adjusting economic structure, the government will try to avoid new capacity excesses and curb rebounding inflation. These are all very challenging tasks.
  Maintaining economic growth requires scientific development, taking into account the impact of stability measures on sustainable economic growth in the future. Bearing this in mind, we believe it’s necessary to stabilize the growth rate by boosting domestic demand with deeper and more frequent adjustments of policies. However, policy adjustments must take into consideration the real demands of businesses and equality among different types of capital.
  In the coming years, another important method to tap the country’s internal drive for sustainable economic growth is to develop urbanization; namely, by making it easier for migrant people from rural areas to become urban citizens.
  Of the 700 million urban people in the country, about 200 million are rural migrants. It is predicted that an extra of 300 million people are expected to move into cities in the coming 20 years. The process of transformation from rural to urban populations calls for new requirements. After all, the domestic demand coming out of these changes will be very important for China’s economic development.
  It’s important to avoid the old practice of maintaining growth by relying on massive industrial programs, such as investing in metal and chemical industries. It’s time to explore and find new ways of economic growth.
  While trying to stimulate China’s economy, we should also take a close look at the economic structure itself. High energy-consuming and highly polluting industries, for instance, should be curbed. In the pursuit of growth, it’s important to prevent the resurgence of any outdated economic systems.

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