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On China's economy
Jun 18,2019 15:30CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM6 18: a few days ago saw a data quite touching, China's total factor productivity, labor productivity is only 43% and 12% of the United States. Therefore, although our reform and opening up has made achievements that have attracted worldwide attention, the Chinese people must not be complacent, because we are still far from being big and excellent, and we should continue to move forward to GDP in the spirit of reform and opening up, and we have been NO.1 for thousands of years.

So what problems have we encountered so far in our economic development? I think it's still in terms of core competitiveness. Core competence is the foundation of a country or enterprise to settle down, and it is its unique advantage which is different from other competitors. It comes not only from the innovation of entrepreneurial genius, but also from the joint development and efforts of countless technical talents. It takes more than ten or even decades of technological accumulation to gain the complete trust of consumers, just like Microsoft and Apple. Behind it are the crystallization of countless technologies, which represent the highest level of science and technology in the United States.

There is also a Huawei in China, but it is still too few. I think there are many reasons why China lacks its own core competitiveness. First, China does not attach enough importance to the protection of intellectual property rights. Without intellectual property protection, no one has the incentive to innovate. Second, entrepreneurs lack foresight. Many entrepreneurs run enterprises in a hurry for success and instant profits, eager to cash in, not at ease in their own industry, but actively participate in the stock market, property market speculation, last year thunderstorm Fuxing Group is a good example. Third, there is a lack of high-tech personnel. Talent is the foundation of high technology. China is not short of people, but it is very short of talents. on the one hand, high housing prices make it difficult for people to calm down to do research, and on the other hand, a materialistic society advocates speculation and dexterity. Down-to-earth research can't make any money, and it may not be respected. Fourth, state-owned enterprises occupy a dominant position in economic development. We know that the efficiency of state-owned enterprises is not as efficient as that of private enterprises, and state-owned enterprises often have no incentive to innovate. Bill Gates said that Microsoft will always be only 18 months before bankruptcy, which is a survival crisis that forces enterprises to innovate independently, but state-owned enterprises will not have a survival crisis.

Innovation drive has always been regarded as the highest realm of economic development. Factor drive works in the early stage of economic development, and efficiency drive can gradually play a role in the process of continuous improvement of the system. In essence, the efficiency of market allocation of resources is higher, but few economies can move towards the desired innovation drive. At present, the factor drive in China has come to an end, the efficiency drive can be expected, and the innovation drive can be said to be just beginning.

Professor Xu Xiaonian said that China's economic development since 2000 mainly depends on the development of two markets, an external demand market and a real estate market. A few days ago Enshi's stop-fall order triggered a heated discussion, behind the stop-fall order is actually the crisis of the real estate market in cities below the third line, and it is also a performance at the end of the real estate industry. The external demand market is hardly optimistic in the wake of the financial tsunami.

Of course, there are still many scholars who are optimistic about the Chinese economy. Professor Lin Yifu has repeatedly mentioned that the Chinese economy should still have 8% growth potential in the next decade. It is true that at present, the service industry is basically under the control of the state, and in the future, with the deepening of the reform of state-owned enterprises, it is expected to become a tuyere for the entry of capital. Of course, these are the lifeblood industries of the national economy, such as finance, communications, transportation, ports and docks, culture and education, medical and health care, media entertainment, and so on.

After all, China has only been through a short period of 40 years, and it is certain that there will be greater progress in the future, which will take time. We cannot compare the past 40 years of China with the 200 years of development of the Western world. This is unfair and everything is difficult to start with. Today, China is changing with each passing day. We are about to lead the world into the 5G era, and there will be more incredible scientific and technological progress in the future. While recognizing the shortcomings of the current Chinese economy, we must still firmly believe that China's prospects are still infinitely good.

China
economy
core competitiveness
innovation

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