People's Daily warns: China's economic "troika" is all out of order

People's Daily warns: China's economic "troika" is all out of order Wen Wei Po Premier Wen Jiabao recently pointed out that it is necessary to "put stabilizing growth in a more important position...

Premier Wen Jiabao recently pointed out that it is necessary to "put stabilizing growth in a more important position", which shows that the central government's macroeconomic policies have been adjusted and China's economic situation is not optimistic. In this regard, the overseas edition of "People's Daily" published an article yesterday saying that the current "troika" that drives economic development are somewhat dysfunctional, and the economic inertia has declined too fast, testing the wisdom of policymakers. However, the government will not relax controls on the property market in order to maintain economic growth. The government has a variety of means to ensure economic growth. "Stabilizing growth" and "controlling the property market" can be carried out at the same time. "People's Daily" quoted Xu Hongcai, deputy director of the Information Department of the China Center for International Economic Exchanges, as saying that the troika of "exports, investment, and consumption" that drives the economy has recently failed. Xu Hongcai said that in terms of exports, due to the intensification of the European debt crisis and insufficient external demand, China's export situation is severe and exports have shrunk significantly. At the same time, wages are rising, the RMB is appreciating, and imported raw materials are rising, which also reduces the competitiveness of China's export products.

Calls for a multi-pronged approach to ensure 7.5% investment. In terms of investment, the 4 trillion yuan investment in the past few years has ended, real estate-related investment is also shrinking, and the role of investment in stimulating economic development has been significantly weakened. In terms of consumption, there is generally no improvement, because the reform of the income distribution system cannot be immediate, and people do not dare to spend the money in their pockets casually. The stock market and real estate market have fallen, the wealth effect of the people is weakening, and the willingness to consume has also weakened. Xu Hongcai said that in order to prevent the economy from declining too quickly and avoid a "hard landing", China's GDP growth rate this year cannot be lower than 7.5%. In order to achieve stable economic growth, he suggested that "multi-pronged measures should be taken to maintain growth." First of all, we must make key breakthroughs in investment, protect key projects, and use key projects to support investment. It is necessary to subsidize low-emission and low-energy consumption home appliances and stimulate the development of related industries. In the process of urban-rural integration, necessary investment must be made in some infrastructure, medical care, education, transportation and other projects. Secondly, we still need to encourage exports, adjust the export structure, improve the quality of export products, and increase the competitiveness of China's export products. Xu Hongcai further pointed out that credit policies should support small and micro enterprises in a targeted and targeted manner, and tax reductions should be appropriate for the individual economy. In terms of monetary policy, the central bank must maintain an appropriate money supply to meet the reasonable demand for money from real economic activities.