Constructing a new development pattern based on unblocking the national economic cycle (authoritative interview)

　　A few days ago, General Secretary of the Supreme Leader pointed out at the symposium of experts in the economic and social fields: "‘ Fourteenth Five-Year Plan ’ The period is the first five years after China has built a well-off society in an all-round way and achieved the first century-long struggle goal, and started a new journey of building a socialist modern country in an all-round way and marched towards the second century-long struggle goal. China will enter a new stage of development, which requires "building a new development pattern mainly by smoothing the national economic cycle."

　　What are the characteristics of the new development stage? How to meet new challenges, seize new opportunities and build a new development pattern? The reporter interviewed Jiang Xiaojuan, Dean of School of Public Administration of Tsinghua University.

　　The new development stage has new features, new opportunities and challenges.

　　Reporter: General Secretary of the Supreme Leader pointed out: "Look at the new opportunities and challenges in the new development stage with dialectical thinking". What are the new features of the new development stage? What are the new opportunities and challenges?

　　Jiang Xiaojuan: During the Tenth Five-Year Plan period, China will enter a new stage of development with new characteristics, new opportunities and challenges.

　　First of all, it has entered the stage of high-quality development and has new characteristics. In the period of quantitative expansion, the word "investment" can be used as the head and "incremental expansion" as the basis. Investing in money, people, land and projects will lead to new output and growth. In the period of quality improvement, the word "mention" should be the first, and "stock improvement" should be the foundation. The key point of investment is to improve the quality, especially the quality of stock production capacity and the allocation quality of production factors, and also to decide how to optimize the structure, how to change the mode and how to improve the total factor productivity. The situation will be much more complicated.

　　Secondly, enter a period when science and technology "follow", "run side by side" and "lead" coexist and the weight of "run side by side" is increasing. In the past, we focused on "following and running", introduced advanced foreign technology, and improved the level of China’s science and technology, especially industrial technology. You don’t need to set your own direction when you "follow", just speed up and shorten the gap. Now, we have entered a period of paying equal attention to "running with", "running together" and "leading", and the situation will change greatly. Technology development has entered a highly uncertain state, with no pilot, no industrial chain, unknown market demand and even no one to follow. We can only increase investment in basic research, persevere and make original achievements. At the same time, allocate scientific and technological resources with enterprises as the main body, strengthen cooperation in Industry-University-Research, and expand the market and industrial chain while innovating. This is a more arduous and complicated scientific and technological task than before.

　　Third, digital technology is more widely and deeply applied. In the future, we will use digital technology to govern the economy and society, and widely use digital technology in economic regulation, market supervision, social management, public services and environmental protection. At the same time, digital technology should be governed, including algorithm problems and personal privacy protection issues. Digital technology often has two sides. The same application can not only empower individuals, enterprises and governments, but also empower all kinds of behaviors that infringe on rights and evade supervision.

　　Fourth, the world today is experiencing a great change that has never happened in a century, which will inevitably bring about the continuous adjustment of all aspects of global relations. From the perspective of economic and trade relations, our relations with some developed countries have changed from complementary relations to complementary, cooperative and competitive coexistence. At present, the strategic game of big countries goes far beyond the economic field, and the uncertainty and high risk of international relations are presented at many points. The task of managing this situation is complicated and the pressure is increasing.

　　China’s industrial competitiveness has been significantly improved, and it can fully develop and grow in the new development pattern.

　　Reporter: Under this background, what are our favorable conditions for building a new development pattern based on the smooth circulation of the national economy?

　　Jiang Xiaojuan: The General Secretary has repeatedly pointed out that it is necessary to accelerate the formation of a new development pattern with the domestic big cycle as the main body and the domestic and international double cycles promoting each other. Our advantages can be seen from both domestic and international aspects.

　　Domestically, since the founding of New China more than 70 years ago, China has accumulated a relatively solid material foundation, and its comprehensive national strength has been at the forefront of the world. In 2019, the total GDP was close to 100 trillion yuan, making it the second largest economy in the world, forming a super-large-scale economic foundation of a big country, providing the basic conditions for the formation of a large domestic cycle. For example, China has a manufacturing system with complete industries and obvious economies of scale, and is the only country in the world with all industrial categories in the United Nations industrial classification. From the perspective of consumer demand, China is the second largest market in the world, with more than 400 million middle-income groups and a per capita GDP of more than 10,000 US dollars. The demand is multi-layered and diverse, which can provide all kinds of markets needed by domestic industries. Our level of scientific and technological innovation is constantly improving, and the stock of human capital is large, which will also grow rapidly. These conditions will support the continuous improvement of the scale, quality and efficiency of domestic circulation.

　　From the international environment, although there have been some setbacks and adjustments in globalization, the overall trend has not changed. Economic globalization and technological globalization continue to develop. We adapt to the international environment and smooth the international circulation. Although there are challenges, there are more opportunities.

　　There is no doubt that what we want is a new development pattern in which domestic and international double circulation promote each other, and we should continue to use two markets and two resources. The competitiveness of China’s industry has been significantly improved, and it can fully develop and grow in the new development pattern.

　　Reporter: What are the difficulties and blocking points in building a new development pattern? How to find the breakthrough point?

　　Jiang Xiaojuan: To build a new development pattern, we must deepen the supply-side structural reform, develop a modern economic system, improve the efficiency of resource allocation, and increase the total factor productivity, so as to continuously expand the domestic economic cycle. In particular, it is necessary to improve the industrial basic ability and industrial technology level, overcome the technical problem of "sticking the neck", and smooth the industrial chain and innovation chain. We should also give play to the basic role of competition policy, foster a level playing field, improve market operation efficiency and promote high-quality economic development. From the perspective of increasing consumption scale, we should speed up the process of new urbanization. In the past years, urbanization lagged behind industrialization, and a large number of rural registered laborers supported the industrialization process, but they could not fully enter the corresponding urban consumption, and the consumption growth was relatively slow. Therefore, it is necessary to speed up the process of citizenization of floating population, and promote the growth and improvement of various consumption levels that match the stable living conditions in cities and towns.

　　Using international circulation to adjust the surplus and deficiency, gain the benefits of division of labor, consolidate and open up the international market, and also provide more opportunities for domestic enterprises

　　Reporter: How does the domestic and international double cycle promote each other?

　　Jiang Xiaojuan: First of all, we should use international circulation to adjust the surplus and deficiency. China is an economy short of land, fresh water and oil resources, which does not match our huge economic volume, which restricts our efficient allocation of resources.

　　The second is to use international circulation to obtain the benefits of division of labor. The formation of the global industrial chain is partly due to the pooling of global resources for joint production because of "not being able to do it" and partly due to the pursuit of the benefits of global division of labor because of "being able to do it but not doing it best". Both factors will continue to exist in the future and increase their intensity. In particular, the globalization of science and technology continues to advance, high-tech products are becoming more and more complex, and the whole world is cooperating and dividing their work, so they will not have sustained competitiveness. We should try our best to participate in the global industrial chain innovation chain, and at the same time try our best to improve our ability to respond to emergencies and maintain the stability of the industrial chain in innovation chain.

　　Third, smooth the international circulation, consolidate and open up the international market, and provide more opportunities for domestic enterprises. We already have an important position in the global industrial chain. Many industries have a high proportion of product markets abroad. Only when the international circulation is smooth and the whole industry operates effectively can we ensure employment and income, which is also an important source of domestic income growth and consumption growth.

　　Reporter: What kind of institutional and institutional reforms are needed to build a new development pattern?

　　Jiang Xiaojuan: To build a new development pattern, first, we must implement a higher level of opening-up policy, from policy opening to institutional opening. In the future, we should strive to make the institutional opening system more perfect and relatively stereotyped. We should continue to improve the system of foreign-related economic laws and regulations, adhere to the principle of equal status of all kinds of economic entities and equal protection of all kinds of property rights, and vigorously improve the level of law formulation and implementation.

　　Second, we should give play to the basic role of competition policy and ensure the effective allocation of resources. Now, the conditions and environment in all aspects have changed greatly, so we can give full play to the role of market competition and change to a "neutral" open system. The first is to maintain "neutrality" between exports and imports, both of which are equally important. Secondly, we should keep "neutrality" between foreign investment and foreign investment. The capital, technology, advanced products and management experience brought by foreign investment are as important as the investment income, export expansion and local production advantages brought by foreign investment. Finally, it is to maintain "neutrality" between foreign-funded enterprises and domestic-funded enterprises. Both types of enterprises can promote domestic economic development and enhance international competitiveness. Fair competition can enable enterprises with stronger competitiveness to win and promote the efficiency and competitiveness of the whole industry.