[China Instrument Network Industry Upstream and Downstream] The 15th China Economic Forum co-sponsored by the China Economic Weekly and the Torch Center of the Ministry of Science and Technology was held in Beijing on December 18, 2015. Zhang Tai, deputy director of the Department of Industry and Transportation of the State Council Research Office, attended and delivered a speech. He said that leaving the supply-side reform, our goal of making 2025 in China is difficult to achieve. It is also difficult to achieve our goal of becoming a powerful country from a manufacturing power.
The following is a speech record:
Zhang Tai: It is difficult to make a concluding speech because this is the job of the host and I cannot do it. I mainly want to talk about something here. I think the topic of our dialogue today is that the reforms on the supply side will help China to create 2025. When I heard this topic, I felt that the topic was selected very well. It actually captures a key factor that may affect the long-term development of China's long-term development. It is actually a key measure. I think on this issue, I will briefly talk about my opinion.
Many of you here today are basically engaged in economic work. Most of them may be businesses. Everyone is familiar with the real economy. No stranger to the real economy, it is not unfamiliar to industry and manufacturing. I myself think that our industry, especially the manufacturing industry, is the most important pillar of the national economy, and it can be said to be a national treasure to achieve national upgrading and development.
Premier Li proposed in this year's government work report that the implementation of China Made 2025, followed by the release of the Chinese Made 2025 text, should be said to have aroused great repercussions in society. For me to understand the situation, this kind of response is still very positive, and everyone is still very supportive of the implementation of Chinese manufacturing 2025.
Another one is all clear: After several decades of development, China has become the world's largest manufacturing country in the past few years, and this proportion has continued to rise in recent years. In recent years, especially after 2008, we should say that we have encountered quite a few challenges in manufacturing development. I think there are several aspects. From an international point of view, one is facing the backflow of the high-end manufacturing industry in developed countries and the double-extrusion of low-end and middle-manufacturing manufacturing in developing countries. Our manufacturing and international space is more severe than in the past. From the domestic point of view, in the past few years, the cost of each factor has also entered a rapid rise, and it should be said that competitiveness is also declining. In particular, over the past few years, our economy has accumulated a huge surplus of production capacity. Therefore, it will become a major obstacle to the transformation and upgrading of our industry, especially the manufacturing industry.
In recent years, we have put forward many major goals for economic and social development, including two one-hundred-year goals, including the goal of building a well-to-do society in an all-round way, including our goals of achieving double high school goals. To achieve this goal, relying on our existing low-end but not strong manufacturing industry can not be supported. Therefore, we must have a driving force in the transformation and upgrading of the manufacturing industry, expand the space for manufacturing development, create a new impetus for the development of the manufacturing industry, and increase the new advantages of the manufacturing industry. I think that in these respects, we are the original intention of our research and development of China Made 2025.
On this basis, I took a look at the text “Made in China 2025,†which proposed nine strategic tasks, eight safeguards, and a total of 17 tasks and measures. Here, I looked at it, and most of it can be attributed to our supply-side reforms. Therefore, I think why did we say that we have chosen this topic today? Without the supply-side reform, our goal of making 2025 in China is difficult to achieve. It is also difficult to achieve our goal of becoming a powerful country from a manufacturing power. This is a point of view.
The second point of view, from the perspective of our actual economic performance, is an urgent need for supply-side reform. In the past few years, as we all know, the economic downturn is very heavy, and industrial and manufacturing industries are the most obvious among them. Including the obvious decline in the growth rate of the industry, the efficiency can be said to have fallen sharply, and losses have risen rapidly. In particular, there are several aspects that affect the potential long-term supply, are not optimistic. For example, the supply of production factors, as I mentioned earlier, is entering an upward path that will affect our competitiveness. From the point of view of technological innovation, with the continuous improvement of the technological level of our country as a whole, the benefits that our technological pursuits bring to us are constantly decreasing.
In addition, from the perspective of the system, there are still many imperfections in our economic system. Including our unified market system, including the free flow of production factors and commodities throughout the country, there are still many areas for improvement. Including the problems that I have just mentioned, a large number of excess capacity and economic structure, these problems are all problems that we have been accustomed to using to adjust aggregate demand. The measures cannot be effective and cannot be solved, or the effect of the solution. It will get worse and worse. Under this circumstance, we emphasize the reform on the supply side and strengthen the regulation and management in this area. I think that in this respect, doing more work and doing more efforts may result in a stable and relatively fast economic development for us. An important basis for growth. This is my two main points.
The following is a speech record:
Zhang Tai: It is difficult to make a concluding speech because this is the job of the host and I cannot do it. I mainly want to talk about something here. I think the topic of our dialogue today is that the reforms on the supply side will help China to create 2025. When I heard this topic, I felt that the topic was selected very well. It actually captures a key factor that may affect the long-term development of China's long-term development. It is actually a key measure. I think on this issue, I will briefly talk about my opinion.
Many of you here today are basically engaged in economic work. Most of them may be businesses. Everyone is familiar with the real economy. No stranger to the real economy, it is not unfamiliar to industry and manufacturing. I myself think that our industry, especially the manufacturing industry, is the most important pillar of the national economy, and it can be said to be a national treasure to achieve national upgrading and development.
Premier Li proposed in this year's government work report that the implementation of China Made 2025, followed by the release of the Chinese Made 2025 text, should be said to have aroused great repercussions in society. For me to understand the situation, this kind of response is still very positive, and everyone is still very supportive of the implementation of Chinese manufacturing 2025.
Another one is all clear: After several decades of development, China has become the world's largest manufacturing country in the past few years, and this proportion has continued to rise in recent years. In recent years, especially after 2008, we should say that we have encountered quite a few challenges in manufacturing development. I think there are several aspects. From an international point of view, one is facing the backflow of the high-end manufacturing industry in developed countries and the double-extrusion of low-end and middle-manufacturing manufacturing in developing countries. Our manufacturing and international space is more severe than in the past. From the domestic point of view, in the past few years, the cost of each factor has also entered a rapid rise, and it should be said that competitiveness is also declining. In particular, over the past few years, our economy has accumulated a huge surplus of production capacity. Therefore, it will become a major obstacle to the transformation and upgrading of our industry, especially the manufacturing industry.
In recent years, we have put forward many major goals for economic and social development, including two one-hundred-year goals, including the goal of building a well-to-do society in an all-round way, including our goals of achieving double high school goals. To achieve this goal, relying on our existing low-end but not strong manufacturing industry can not be supported. Therefore, we must have a driving force in the transformation and upgrading of the manufacturing industry, expand the space for manufacturing development, create a new impetus for the development of the manufacturing industry, and increase the new advantages of the manufacturing industry. I think that in these respects, we are the original intention of our research and development of China Made 2025.
On this basis, I took a look at the text “Made in China 2025,†which proposed nine strategic tasks, eight safeguards, and a total of 17 tasks and measures. Here, I looked at it, and most of it can be attributed to our supply-side reforms. Therefore, I think why did we say that we have chosen this topic today? Without the supply-side reform, our goal of making 2025 in China is difficult to achieve. It is also difficult to achieve our goal of becoming a powerful country from a manufacturing power. This is a point of view.
The second point of view, from the perspective of our actual economic performance, is an urgent need for supply-side reform. In the past few years, as we all know, the economic downturn is very heavy, and industrial and manufacturing industries are the most obvious among them. Including the obvious decline in the growth rate of the industry, the efficiency can be said to have fallen sharply, and losses have risen rapidly. In particular, there are several aspects that affect the potential long-term supply, are not optimistic. For example, the supply of production factors, as I mentioned earlier, is entering an upward path that will affect our competitiveness. From the point of view of technological innovation, with the continuous improvement of the technological level of our country as a whole, the benefits that our technological pursuits bring to us are constantly decreasing.
In addition, from the perspective of the system, there are still many imperfections in our economic system. Including our unified market system, including the free flow of production factors and commodities throughout the country, there are still many areas for improvement. Including the problems that I have just mentioned, a large number of excess capacity and economic structure, these problems are all problems that we have been accustomed to using to adjust aggregate demand. The measures cannot be effective and cannot be solved, or the effect of the solution. It will get worse and worse. Under this circumstance, we emphasize the reform on the supply side and strengthen the regulation and management in this area. I think that in this respect, doing more work and doing more efforts may result in a stable and relatively fast economic development for us. An important basis for growth. This is my two main points.
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