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How to improve China's economy |
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16:30, July 02, 2009 |
People's Daily recently gathered economic experts' proposals on the future development of China's economy amid the global financial crisis.
There should be more financial subsidies to support the technological upgrading of enterprises and individuals to start their own business so as to expand domestic demand and open up the market.
Commercial banks need to cut rate of savings deposit reserve fund and at the same time fine tune loan interest rates. We need to accurately judge the money supply situation, and enhance the flexibility of policy.
Some experts suggested that if the momentum of economic recovery was slower than expected, the Government may consider introducing new policies to stimulate private investment and strengthen economic vitality of small and medium-sized enterprises.
In terms of expanding consumer demand, experts suggest the revitalization of the service sector, continue to encourage automobile and housing consumption, and continue to implement measures such as household appliances to the countryside.
To stabilize external demand, we should increase support for exports, including: the continued change and abolishment of policies and regulations that restrict export according to the changing situation.
Also, we need to use financial, credit and other means to support the export of goods that have great competitiveness. We can use foreign trade development fund to support enterprises to help them overcome trade barriers and expand exports. We can encourage qualified enterprises to "go abroad" to stimulate the export of related products.
To adjust the distribution pattern of national revenue and raise the share of labor income and raise the level of household consumption which will facilitate the formation of endogenous motivation for long-term economic growth.
We need to support the development of SMEs and improve the financing environment for SMEs to enhance economic vitality. Adjustment of monetary policy and financial structural reform should be closely linked to avoid the economy dilemma of inflationary pressures and damage on real economy caused by the compression of credit.
We will also need to speed up financial reform and financial mechanism innovation to improve the efficiency of the financial system. This will change the situation that on the one hand, banks have many deposits, on the other hand, the financial needs of small and medium-sized enterprises and farmers can not be met.
To achieve economic recovery and sustained growth, we have to rely on economic restructuring brought about by technological progress and industrial restructuring. We need to promote industrial restructuring and upgrading as well as enterprise restructuring.
By People's Daily Online
http://paper.people.com.cn/rmrb/html/2009-07/02/content_286694.htm
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