Liu Shijins Talk on Stimulating Chinas Economic Motivation: It will take another 10 years or so to double the number of middle-income groups

category:Finance
 Liu Shijins Talk on Stimulating Chinas Economic Motivation: It will take another 10 years or so to double the number of middle-income groups


How to make good use of the strength and resilience of Chinas economy and ensure that Chinas economy is stable and far-reaching? Daily Economic News reporter noticed that during this meeting, many experts and scholars had a heated discussion on this topic.

Middle-income groups should be doubled

Liu Shijin, deputy director of the Economic Committee of the CPPCC and deputy director of the China Development Research Foundation, pointed out at a sub-forum on the afternoon of June 6 that if the overall income level of low-income people could be raised, they would become the most important driving force for Chinas next economic growth. In order to achieve this goal, we need to double the number of middle-income groups in about 10 years after 2020 to achieve the goal of doubling. From the current 400 million people to 800 million to 900 million people, accounted for about 60% of the total population.

How to achieve the doubling of middle-income groups? Liu Shijin made three suggestions at the meeting. He pointed out that the first is to further break the monopoly, promote the reform of property rights system, especially the reform of factor markets, and further radiate the vitality of Chinas growth in all aspects. In this way, all aspects of society, especially low-income groups, can have more opportunities for employment and entrepreneurship.

The second is to further strengthen the social security system. For example, social security, medical care, employment, these security systems should have national connectivity, which is conducive to the flow of workers. Therefore, we need to carry out some social reforms to further enhance the mobility of the entire workforce.

Third, the promotion of human capital, especially to strengthen vocational training. Whether it is globalization or technological progress, labor positions are undergoing great changes. How to cultivate human capital to make the labor market more dynamic or more mobile and resilient is the next concern of China.

Through the promotion of these issues, the goal of doubling the income of the labor force can be achieved. Liu Shijin said.

Platform Economy Promotes Advantage Industrialization

Xu Xianchun, director of China Economic and Social Data Research Center of Tsinghua University, said in his speech: I think the most important thing for Chinas economic development is its potential, and creativity.

Where is the potential and creativity? According to Xu Xianchuns case study of Fujians platform economy development, the private economy in Fujian is developing very fast, but there are also some problems in the private economy, such as small scale, decentralization and weak coordination. Therefore, Fujians platform economy has adopted the transformation of traditional industrial platforms, the platforms of superior industries, the promotion of private enterprises by state-owned enterprises, the promotion of zero-integration of superior industrialization, and the transformation of small industries into large ones.

He illustrated that the local gas station industry in Fujian has combined state-owned enterprises with private enterprises, established a platform economy model, adopted a centralized procurement, low-cost and efficient operation model, and centralized the demand of downstream gas stations, and purchased from upstream refineries. Promoting services and cross-border marketing, not only refueling, but also selling other goods, extending value-added services to other goods.

For the development of platform economy in Fujian, Xu Xianchun said that it is meaningful to build a platform to realize the transformation and upgrading of traditional industries, improve efficiency and reduce costs by relying on the advantages of traditional industries in the region. Chinas economic growth has great potential in local areas and in enterprises. Therefore, giving full play to the initiative of local governments and enterprises may produce infinite creativity, which is more conducive to the resilience of Chinas economic growth.

Source: Daily Economic News Responsible Editor: Zhong Qiming_NF5619