[Abstract] Accelerating the development of Traditional Chinese Medicine (TCM) has become a national strategy of China as the TCM civilization is an organic part of the Chinese civilization. The revival of TCM civilization is an important component and effective support for China Dream and the rejuvenation of the Chinese nation. In order to succeed and carry forward TCM, safeguard and promote its development as well as protect people’s health, relevant government departments need to come up with policies supporting the innovation and integration of TCM, build TCM Health Town and demonstration projects of TCM innovation.
[Abstract] As the US economy continues to improve, the Federal Reserve begins to unwind its balance sheet through stopping the reinvestment in mature assets and selling some of its assets gradually, the process is likely to last five years. To deal with the spillover effect of such a reduction, China should take active measures, such as follow closely the progress of the reduction of the balance sheet and assess its impact on a timely manner, improve the management of foreign exchange, maintain a stable foreign exchange market and finally, improve financial supervision and enlarge the two-way financial opening-up.
[Abstract] As same as the debt-to-equity swap, establishing a debt clearance center is an important way of solving the debt problem. The operation costs of the traditional debt-clearance center are very high due to the tens of thousands of market players. Therefore, it is necessary to put the “Internet +” into the application, establish the big data debt-clearance platform and switch the operation from offline to online. Using big data algorithm to actively extract the debt chain will be able to clear different debt chains systematically, reduce enterprises’ leverage effectively and minimize systematic debt risk. Consequently, relevant ministries are suggested to devise and refine implementable plan, start with a pilot project and establish national big data debt-clearance platform in China.
[Abstract]The creation of an innovation & design district in the bay area of Guangdong-Hong Kong-Macau will offer great guidance and support for establishing industrial innovation system in the bay area and allowing the Pearl River Delta to play a leading role in implementing the strategy of Made in China 2025. Furthermore, it will produce innovation and new thoughts for deepening cooperation between the Mainland China, Hong Kong and Macau. The three areas have not just complementary advantages, but also huge potential for cooperation in design and other aspects. Taking the above factors into consideration, the authorities should make the bay area an innovation center of global manufacturing, a clustering of self-owned brands, international designers and innovation and design of global influence. To achieve those goals, the local governments need to speed up innovation and come up with policies supporting the integration of industry, talent, culture and mechanism.
[Abstract] Based on China’s circumstances, it is foreseeable that a considerable amount of population will remain in the rural areas by 2030, major towns will be the main connecting point of the urban-rural integration, urban-rural income gap is likely to enlarge and there will be significant changes in the functions of urban and rural areas. To deal with the new changes and problems, China should develop precision agriculture to suit local conditions, increase investment in agriculture and construction of rural infrastructure, and innovate the governance and supply of public services in urban and rural areas. Furthermore, China should narrow the urban-rural gap, overcome the middle-income trap, ensure that the major functions of city clustering, city, small town and rural area are scientific and reasonable and ultimately form a new pattern for urban-rural integration.
[Abstract]Medium, small and micro enterprises are the major force of the so-called “double creation” (to create more start-up and innovation), but they often encounter difficulties in financing and getting the industrial land they need. The successful practice in Wenzhou proves that an innovative division of property right and the establishment of a systematic platform for public services are important solutions to those problems and can help promote enterprises’ development. Three suggestions are made to boost the development of medium, small and micro manufacturers. Firstly, to conduct researches further improving the division of property right of industrial land. Secondly, to improve the policies suits the entry of a large amount of small and micro enterprises. Lastly, to give financial support to industrial property development.
[Abstract] The big data has significant strategic value in supporting economic development and the construction of national defense as it provides precise intelligence for decision-making, matches military with civil organizations, and optimizes the process of industrial production and national defense construction. However, a sound statistical system of military-civil integration has not yet been created, the dilemma of information isolation still exists, and the information security and data management are missing. To address those issues, the authorities should design an index system for military-civil integration data as soon as possible, establish the channel for the statistics of military-civil integration, and create a national data platform for military-civil integration to share information. Moreover, the authorities should give more support to the construction of big data, strengthen the security of big data and build diversified platforms and systems for military integration. Finally, the authorities should implement the integrated development strategy and build system for military integration big data industry.
[Abstract] In order to deal with China’s systematic financial risk, we need to examine China’s financial expansion and conduct analysis based on the balance sheet structure. The rising active debt ratio of the banking sector shows that China’s banking sector has the internal impetus to enlarge the size of the balance sheet in order to reduce the profit loss brought by the decreased differential interest income. To deal with the financial expansion, this report suggests that active debt ratio can be used as an index to assess commercial banks.
[Abstract] The two economic corridors, China-Indochina Peninsula and BCIM (Bangladesh, China, India and Myanmar) are important components of the Belt and Road. Therefore, we should attach great importance to the leading role played by the two corridors in promoting joint development in China’s Southwest Region. The authorities are recommended to design quickly the “Plan for Southwest Regions’ Participation in the Building of the Belt and Road”, put forward special policies for supporting cooperation in the areas of culture and tourism, cross-border trade, regional cooperation, and establish coordinating mechanism for the international channel. More support should be given to Yunnan province and Guangxi Autonomous region as they are vital portals of the two economic corridors.
[Abstract] China will make significant progress in helping extremely poor individuals, towns and regions to get rid of poverty and achieve its goals in poverty alleviation before 2020. After that, China’s rural poverty will experience some changes in the new historical period and has the following characteristics, namely, chronicity, potentiality and mobility. To deal with the new trends of poverty, the authorities should make early preparations and appropriate adjustments to meet the needs of poverty alleviation.
[Abstract]The current rising housing price in many cities of China has started to squeeze the real economy. Three policy recommendations are made to stabilize housing price in hot areas. Firstly, central enterprises should play an active role in guiding and adjusting the real estate market. The authorities should promote the restructuring and IPO of stated-owned property developers, transfomr them to the provider of comprehensive urban services and adjust the number of central enterprises whose core business is real estate. Secondly, the authorities ought to speed up the process of transforming the headquarter of central enterprises to market-oriented companies with stated-owned capital, guide the headquarters move to border districts of big cities and establish headquarter-based satellite city. Last but not least, the authorities should create different evaluation systems for central enterprises, help them to deleverage gradually and ensure a healthy and stable development of the real estate market.
[Abstract] China’s auto brands have developed rapidly over recent years, its R&D capability is making remarkable progress and is capable of expanding its business abroad, especially in the African market. Comparing with the auto manufacturers in the US, Europe and Japan, China’s auto enterprises are faced with such problems as limited ability to fight alone abroad and lack of support from the government and financial consortium. To help China’s auto manufacturers go abroad, China should establish a platform to promote capacity cooperation between China and Africa, guide Chinese auto manufacturers to go abroad together, support the construction of auto clustering, and encourage auto manufacturers to jointly establish and share the network of sale and services.
[Abstract] The combination of industry and finance is not just a popular trend for the development of large enterprises around the world, but also the requirements of China’s SOEs reform in the new era. The national defense and military industries are the key fields of China’s SOEs reform. Meanwhile, the advancement of SOEs reform also speeds up the integration of the stated-owned military enterprises. In order to accelerate the combination of industry and finance for military groups, we should establish diversified financing platforms, create innovative financing models, enlarging financing channels, introducing strategic investing institutions and adopt other necessary measures.
[Abstract] The bay-based economy can be seen as an important highlight of the international economy and all the famous bay-based economies have the following characteristics. Firstly, there must be an open economic structure and efficient resource allocation. Secondly, the area has strong ability of innovation, livable living environment and inclusive culture and atmosphere. Lastly, the bay area has solid assembling function and significant spillover effect. The construction of Guangdong, Hong Kong and Macao Bay Area should learn from the features described above, the responsible departments should demarcate the bay area scientifically and make hierarchical plan for the development in the bay area. Furthermore, they should guide industries in this area to avoid homogenous competition, create a high quality living environment and come up with innovative mechanism and model of cooperative development.
[Abstract] The China-Japan Relations have entered into an unprecedented New Normal due to a number of factors. For instance, the historical changes between China and Japan’s national strengths, the strategic adjustment of the US and the change in the strategic pattern of East Asia, as well as the ever-increasing antagonism demonstrated by Japan’s strategies and policies toward China. In the future, China should establish a new type of relations with Japan under the new normal with a long-term strategic perspective. Besides, China should seek for more common interest, strengthen regional cooperation, improve mutual political trust and security guarantee while maintaining good multilateral relations between China, the US and Japan. Lastly, China should try to establish a new relationship between big nations in East Asia, according to the new normal and regional cooperation and integration.
[Abstract]Recently, the excessive expansion of the financial industry has generated considerable criticism. The main reason for such kind of expansion is that the asset management industry has led many overlapped transactions among financial institutions. Besides, the banking organizations are the major source of asset management industry. The financial support for companies, especially small and micro companies is rather limited. The lack of standardized regulatory rules has seriously deterred healthy development of the asset management industry. In response, the authorities should establish an effective mechanism to isolate transactions between financial institutions. Apart from that, they should have a unified framework in place regulating the asset management industry, with the supervisor of securities industry acting as the core of this framework.
[Abstract]In spite of the peaceful environment and economic downturn, the global military industry has kept moving ahead. The major military powers have taken measures to enhance their competitiveness in the military industries and new feature and trend have emerged, such as professionalism, large scale of restructuring, asset-backed securitization and the integration of military and civilian technology. Having considered the successful experience of the US and Europe, China should in the short-term focus on asset integration within military groups. In the future, China’s military industry could create international military giant through inter-group asset integration. At the same time, the industry should accelerate the securitization of military asset, grasp new international opportunities and expand military trade to strengthen national influences.
[Abstract]In 2016, the RMB showed a sign of depreciation and thus, how will the trend develop in 2017 has attracted wide attention. By quantitative analysis of the exchange rate model and international experience, this paper reached the following conclusions. Firstly, RMB has no obvious pressure to either depreciate or appreciate because the current exchange rate between the USD (US Dollar) and RMB (1:6.9) is very close to the equilibrium level. Secondly, the depreciation of RMB in 2016 made great impact on pushing up domestic prices and thus, further depreciation is unnecessary. Furthermore, China should refuse firmly America’s request for RMB appreciation as such kind of appreciation will not be able to eliminate China’s massive trade surplus with the US. Lastly, the USD-RMB exchange rate should be maintained at the level of 1:6.91 in 2017, floating in the range of 3 percent. Attention should be paid to the USD exchange rate to maintain stabilization of RMB’s real effective exchange rate.
[Abstract]Some of the US President Trump’s understandings of China’s economy come from his economic advisor, Peter Navarro. As the Director of the White House National Trade Council (NTC), Peter Navarro plays a very important role in future China-US economic and trade relations. The book “Death by China” summarized Navarro’s major viewpoints on China. During his presidential campaign, Trump accused China of being a current manipulator and proposed a 45% tariff, all these kinds of arguments can be found in this book. Moreover, the book gives systemic introduction of the measures that can be taken to attack China. Therefore, it is necessary to understand the book and get ready for rainy days if we want to understand the economic policies toward China, which might be adopted by Trump.
[Abstract]Currently, China’s foreign trade is experiencing a downturn and the traditional growth model of foreign trade is no longer sustainable. Meanwhile, some new momentum promoting growth of foreign trade has started to emerge. Several policy recommendations are made to promote steady growth of foreign trade. Firstly, the authorities should establish a new management mechanism to suit the new trade model of cross-border e-commerce. Secondly, the government should expand the scale of services and trade and facilitate growth through further reform and opening-up. Last but not least, the Belt and Road initiative can be used as a starting point to enhance integration and development of trade and investment, and ultimately to strengthen new momentum for China’s foreign trade.
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