Real boost to real econ­omy

China Daily (Hong Kong) - - COMMENT - — BEI­JING YOUTH DAILY

At a re­cent meet­ing to study and an­a­lyze eco­nomic work for next year, the Po­lit­i­cal Bureau of the Cen­tral Com­mit­tee of the Com­mu­nist Party of China vowed to re­ju­ve­nate the real econ­omy — man­u­fac­tur­ing and ser­vices — and fos­ter new dy­namism in the sec­tor. This is a sig­nif­i­cant and pos­i­tive pol­icy reaf­fir­ma­tion, be­cause with­out the de­vel­op­ment of the real econ­omy, it is dif­fi­cult to re­al­ize sus­tain­able and steady eco­nomic growth as decades of break­neck, ex­ten­sive and re­sources-ex­haus­tive growth have ex­ac­er­bated China’s eco­nomic im­bal­ance. Now that the top lead­er­ship has re­solved to boost the real econ­omy, the next move should be to find ways and means to ad­dress the most se­ri­ous dif­fi­cul­ties the sec­tor is fac­ing.

How to solve the prob­lem of high costs the real econ­omy faces re­mains a press­ing and tick­lish is­sue. High costs are a wide­spread eco­nomic and so­cial is­sue for China’s real econ­omy, es­pe­cially for en­ter­prises run­ning re­source-in­ten­sive in­dus­tries, and the fi­nanc­ing and tax­a­tion sec­tors, all of which can­not be re­solved at the en­ter­prise level. De­ci­sion-mak­ers must take them into con­sid­er­a­tion and pur­sue their set­tle­ment from the pol­icy and in­sti­tu­tional lev­els. Oth­er­wise, it will be dif­fi­cult to meet any prom­ises to boost the de­vel­op­ment of the real econ­omy.

How to pre­vent ex­ces­sive funds from flow­ing into vir­tual fields poses another ma­jor dif­fi­culty for the re­ju­ve­na­tion of the real econ­omy. De­spite a series of ac­tive pol­icy guid­ance and sys­tem­atic de­signs and ar­range­ments, such fund flows into non-real eco­nomic fields have not been ef­fec­tively curbed. In re­cent years, real es­tate and the cap­i­tal mar­ket, the in­ter­net, and sports and en­ter­tain­ment sec­tors have al­ter­nated to at­tract large vol­umes of funds. To change such a sit­u­a­tion, China needs to ac­cel­er­ate its fi­nan­cial re­forms and use in­no­va­tion to ex­tend sub­stan­tial fi­nan­cial sup­port to the real econ­omy.

The coun­try’s on­go­ing ef­forts to deepen the sup­ply-side re­form and the trans­for­ma­tion of its growth model are by no means aimed at boost­ing only emerg­ing in­dus­tries. They are also aimed at re­vi­tal­iz­ing the coun­try’s tra­di­tional sec­tors by push­ing for their trans­for­ma­tion and up­grad­ing.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.