[Abstract] To deal with the shifting from the real economy to virtual economy, a research team from CCIEE conducted a field trip in Hunan province. Generally speaking, Hunan’s economy is stable and moving in a positive direction. Nonetheless, some of the funds has also shifted from the real economy to virtual economy. The growth of investment in manufacturing has started to slow down, private investment is sluggish and capital cannot flow into the real economy. All these can be attributed to two factors. On one hand, enterprises of high quality have less demand for bank loans. On the other hand, the banks are less willing to enter into the industries which have a relatively higher level of risk. Therefore, the local governments should offer more supporting policies in terms of developing financial services in counties, offering finance to small and micro enterprises, and lowering costs for manufacturing industries.
[Abstract] Real Economy is the foundation of national economic development and revitalizing the real economy is one of the key tasks of deepening China’s supply-side structural reform in 2017. Fiscal policy is an important measure to revitalize the real economy. Under the constraint of financial de-leveraging and limited fiscal expansion, the fiscal and taxation policy should be both flexible and targeted in order to support the real economic development effectively. For example, the fiscal policies should focus on the supply-side structural reform, continue to lower tax and costs, reduce the burden of enterprises, adjust tax structure, and support vigorously the development of small and micro enterprises in the strategic emerging industries, advanced manufacturing and technological industries. Apart from that, the authorities should implement PPP (Public Private Partnership) projects, make up the shortfall of infrastructure construction and establish a comprehensive PPP system.
[Abstract] The tax reduction program launched by Trump administration mainly focuses on three aspects, lower business tax rates, lower individual income tax rates and increase rates on overseas profits. The purposes of the cuts are making the enterprise tax system more competitive, encouraging the return of US companies, attracting investments from US or foreign-funded companies, and ultimately stimulate economic growth. The program will impact the flow of China’s capital and challenge the industrial upgrading and transformation of China if it is implemented. Therefore, China needs to adopt effective countermeasures, for example, adjusting its taxation, promoting the development of urban-rural integration, improving the environment for investment and boost domestic private investment.
[Abstract] The policy of returning farmland to forestry has made significant progress in terms of combining ecological conservation and targeted poverty alleviation since it was implemented. The project subsidy is coming to end soon, nonetheless, the follow-up policy is still not in place. Such a lag is likely to more or less undermine the achievement, which has already been made. To address this issue, the relevant departments are recommended to extend the subsidy to rural areas, adjust the subsidy appropriately, change support for follow-up industries, and explore the possibility of trans-regional subsidy.
[Abstract] Practices show that the realization of improved industrial efficiency derived from the division of labor within agriculture needs the assistance of geographical clustering of agricultural activities. Therefore, it is necessary to promote the geographical clustering of agriculture as a starting point for China’s agricultural policy. The responsible bodies should take the following measures to advance the supply-side structural reform in agriculture. On one hand, they should develop professional, diversified and coordinated agricultural production, management and industrial systems by guiding and regulating the geographical pattern of agricultural development. On the other hand, they should fully foster and use positive externalities generated from geographical clustering, and strengthen the building of transportation network and agricultural products circulation.
[Abstract]With the help of national e-governance network, China has made a good start in the application and building of big data infrastructure over recent years. Each city has implemented the big data plan differently according to their conditions. By analyzing the construction of big data for e-governance in central and local governments, this research paper discovered some problems in relation to the establishment of the big data network. For example, lack of information-sharing, inadequate laws and regulation, short of personnel and information security problem. The responsible departments are thus recommended to improve laws and regulations supervising big data, accelerate the building of a unified platform for big data, speed up information-sharing, disclose e-governance data to the public and strengthen big data security.
[Abstract] Due to their lack of skills and managerial experience, poverty-stricken farmers can hardly pull themselves out of poverty by developing their own programs. The new agricultural business entities, however, have the capability to help poor farmers get rid of poverty. Therefore, improving the financial services for the new agricultural business entities should become the major mean to achieve “poverty alleviation through financial services”. Presently, there are several problems in the financial services available to the new agricultural business entities, for example, insufficient services to agriculture and poor farmers, weak technological innovation, incomplete credit rating and guarantee system, the lack of precision and difference in supporting policies. To address those problems, the financial institutions are recommended to establish multi-layer financial institutions in rural areas, offer diversified financial products, comprehensive credit rating and guarantee system, as well as echelon fiscal policies to achieve more breakthroughs.
[Abstract] China is under great pressure to attract Foreign Director Investment (FDI) as developed nations have started their re-industrialization while low-income countries have significant cost advantages. Having considered these factors, China should learn from Singapore, Hong Kong Special Administrative Region and South Korea in the areas of creating an open and free environment for FDI, launching tax incentive, offering efficient and convenient government services and sound legal system. Having considered India’s defects, China should improve the laws and regulation to the international standard for FDI according to the principles of rule of law, internationalization and facilitation. Furthermore, China should build a more liberalized environment for investment, reduce enterprises’ costs and nurture a fair, competitive and relaxing environment for FDI.
[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.
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