China Center for International Economic Exchanges

Chen Wenling: The current top priority is to strengthen the weak link of institutional supply
Date:Jan 31,2018    Source:CCIEE

“When a country put its interests above that of the rest of the nations, its biggest rival will face serious challenges,” said Chen Wenling, Chief Economist of China Center for International Economic Exchanges at the “Think Tank Forum-New Year Forum 2018”, held on January 27 by the Development Research Center of the State Council and China Development Press.

Chen Wenling started her speech by talking about Trump’s recent speech at the Davos Forum and the U.S. national security strategy report released recently. She said that we can see that the United States regards China as its biggest competitor. In the near future, China may experience serious difficulties amid fierce international competition and therefore, we have no choice but to move forward.

Chen Wenling said that the 19th National Congress has formulated a great blueprint and set the goals of development for the next 30 years. Next, we should make all the necessary effort to implement the blueprint.

Last year, China’s investment in the United States was reduced substantially due to the US security review. Chen Wenling believes that the most important factor in the international competition for industries and talents lies in the design of the system. Building a modernized economy requires us to strengthen our own weak links, especially the institutional supply.

In Chen Wenling’s opinion, some of China’s institutions are either outdated or inappropriate. For example, in the face of Trump’s tax cuts and deregulation policies, we also need to think about improving our taxes and other policies. Enterprises’ dissatisfaction with the taxation system indicates that China’s government reform and business reform have not kept pace with the modern business environment.

Chen Wenling stressed that the institutional supply is our biggest shortcoming, and we have to reform the government system, improve administration and transform management processes urgently. The traditional way of thinking, management and administration have limited the development of the new economy, momentum and business models.

Chen Wenling said that it is imperative to strengthen the weak link of the institution and form a sound system. In detail, we should work on the following five aspects. Firstly, we should build a sustainable and healthy momentum for the economy and treat innovation as the most important dividend. Secondly, we should build a modern market system and lay a solid economic foundation for achieving the goals of 2020, 2035 and 2050. Thirdly, we should establish a higher-quality supply system, including the supply of enterprises, goods and systems. Fourthly, we should accelerate the construction of infrastructure. Lastly, we should establish a coordinated development system for the urban and rural areas so as to achieve coordinated and shared development.

 

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