One of the annual gatherings of Chinese economists, the fifth fudan chief economist BBS was held in Shanghai on October 26. This year’s BBS focuses on the “70 years of new China’s economy and the new pattern of comprehensive opening up”, aiming to review the 70 years of economic development since the founding of new China, look into the future, and focus on economic development based on the heavy responsibilities of the country. Many well-known economists were invited to discuss the annual development proposition in BBS, discussing the economic development strategy under the new pattern of comprehensive opening up.
The second heavyweight guest is Yang weimin, member of the standing committee of the CPPCC national committee, deputy director of the committee of economy of the CPPCC CPPCC and former deputy director of the office of the central leading group for financial and economic affairs. Every five years plan (plan) is key and highlight, for example, “the purpose of” plan insist on economic construction as the center, “>” plan will be the focus of the reform from the countryside to the city, “five-year” plan to adhere to the objectives of the reform of socialist market economy, put forward the “ninth five-year plan” period and the sustainable development strategy, relying on science and education “tenth five-year plan put forward the strategy of western development and urbanization, the eleventh five-year plan for the first time put forward the development priority zones and divides into the planning indexes of prospective and binding, the 12th five-year plan period, implementation economy and industrial structure of multiple span,” much starker choices-and graver consequences-in planning is put forward to supply side structural reform as the main line. It is the scientific medium – and long-term development plan that has led China from a low-income country to a high-income country, built the most comprehensive industrial system in the world, made China the largest manufacturing country in the world, and made significant progress in urbanization, education, research and poverty alleviation. Wei-min Yang responded to the outside world of China’s development plan, in his view, has essential difference between planning and the mandatory plans, planning is a kind of more direct, a kind of motivation, is also a kind of constraint in the responsibilities of government, planning the ultimate aim is to let the market play a decisive role, better play to the functions of the government at the same time.
The third speaker was huang youguang, distinguished professor of economics at fudan university, emeritus professor at Monash university, academician of the Australian academy of social sciences and member of the advisory committee of the GlobalPriorities Institute at Oxford University. In terms of GDP we’re still growing and growing faster. According to China’s national bureau of statistics data to calculate GDP, China’s GDP now each represented by a one percent increase in real output increases, is equal to about 2.4% a decade ago, so even if the present growth rate fell to 5%, but in actual production increase, equivalent to about 12% a decade ago, 20% 15 years ago, 30% of 20 years ago, 50% of the 25 years ago. He thinks the scale of China’s debt problem is exaggerated. Second, China’s debt is mainly domestic, not external, and much of it is roughly a side effect of the right policy, far from approaching insolvency overall. And he thinks the Chinese government has a powerful role to play in preventing the outbreak and spread of the crisis.
The fourth speaker is zhu yunlai, former President and CEO of China international capital corporation. “At the beginning of our economic development, it was very difficult. After 70 years of development, it is possible that almost all industries have undergone great changes and have gradually entered a relatively abundant world economy. Now the economy faces a new challenge, which should be to consider how to make the best use of the accumulated investment in the past. Now we can put our existing assets to good use and build a more systematic and scientific approach, which is the way to keep the economy growing.
Our last speaker is professor of economics at the London school of economics and winner of the young world leader award at davos. She expressed three views on how China should continue to open up and play a new role in the international environment of the new era. First of all, inclusiveness and openness are an important core of our traditional culture. China is good at absorbing what is outside into its own. Second, in terms of openness, China should say YES and NO to globalization and future ideological and policy proposals. “We say no to free trade, we say no to foreign direct investment, we say no to unrestrained capital flows, we say no to comprehensive liberalization of imports. This is the basic spirit of our past opening-up policy, and it should be the basic philosophy of our present and future opening-up policy,” jin explained. The third point is that in the process of globalization in the new era, the whole world is a network system, from technology, capital, to supply chain and infrastructure. The network makes the comparative advantages of each country gain more value. With the evolution, being its leader has different meanings. “China is now poised to become the leader of the global network,” jin said. “China does not seek to monopolize the system, but to ensure the equal operation of the network, ensure its security and sustainability, and prevent other countries from undermining the network.”
At the end of BBS, Yang yanqing, special host guest of BBS and President of China business research institute, summarized BBS based on the views of the guests. How should China respond by continuing to develop itself and become a high-income economy? The first is to believe in the power of the market and continue to deepen reform; The second is to be bold and open, but also prudent and dare to refuse. Finally, we need to build a good macro policy framework and regulatory policy mix. It is also very important that macro policies be transparent and predictable.