The Vice Minister of Commerce is writing: insisting on expanding domestic demand and stabilizing external needs

Xinhua Beijing, June 16, Deputy Minister of Commerce Ziying should be in "Qiu Shi" magazine published a signed article "to achieve the expansion of domestic demand and stability of the organic combination of external needs," insisted that the expansion of domestic demand and stability of external demand, to promote stable and rapid development of national economy is very important significance. The full text reads as follows: realizes expands the domestic demand and the stable external demand organic combination to insist to enlarge the domestic demand and the stable external demand unifies, further strengthens resists the external economic risk the ability, is both the current response international financial crisis urgent need, also is our country must insist the strategic policy for a long time.　　It is of great significance to implement this strategy seriously in the practice to promote steady and rapid development of national economy. First, accelerate the formation of mainly rely on domestic demand to stimulate economic growth pattern based on expanding domestic demand to stimulate economic growth is determined by the basic national conditions. China, as a developing country with 1/5 of the world's population, has large market capacity and diverse consumer demand, and can not rely mainly on foreign supply for all kinds of products and services that meet domestic needs. On the other hand, as the third largest economy in the world, the comparative advantage is obvious, and the supply ability is strong The production of a large number of final products and services can not be mainly digested by foreign markets.　　Therefore, in order to achieve steady and rapid economic development, we must base on expanding domestic demand, especially residents ' consumption demand. The direct impact of the international financial crisis on the real economy is to cause a sharp contraction in international market demand. The International Monetary Fund estimates that the world economy fell 1.3% in 2009, the lowest level since the Second World War. Among them, the United States, the eurozone and Japan fell 2.8%, 4.2% and 6.2% respectively. Global trade fell by 11% in 2009, with negative growth for the first time in 27 years. The shrinking of global demand and the consequent rise in trade protectionism have made a huge impact on China's foreign trade, especially exports. November 2008, China's exports ended a 7-year continuous growth situation. Since entering the 2009, the volume of foreign trade showed a sharp decline.　　Under such circumstances, it is more urgent and important to enlarge domestic demand, especially to enlarge consumption demand. Investment and consumption are two major components of domestic demand. Whether the proportion of them is reasonable is directly related to the quality and efficiency of economic growth. Over the years, China's economic growth has been excessively dependent on investment and export-driven, investment demand has been high, and now continue to expand investment not only limited space, but also diminishing marginal benefits. Therefore, in the long run, the current expansion of domestic demand should focus on expanding consumer demand, to enhance the consumption of the economic growth of the pulling role. Because the determinants of consumer demand are income level, consumption habits and propensity to consume, these factors have relative stability, so it can effectively relieve the economic fluctuation and provide impetus for the next round of economic growth.　　At the same time, consumption can guide the scale, structure and timing of investment through production and circulation, which is an effective channel to realize investment value. At present, expanding domestic consumer demand is not only very important, but also realistic. After 30 years of reform and development, the consumption structure of Chinese residents has stepped into the stage of transition from subsistence to well-off and enjoying, and the demand for durable consumer goods such as housing, automobiles and high-grade electrical appliances has been expanding, and the demand for service-oriented consumption such as home economics, cultural sports, tourism and leisure has been increasing. At the same time, the income level of our country residents increases unceasingly, the saving scale expands unceasingly, 2008 urban inhabitant per capita disposable income and the rural per capita net incomes respectively reached 15781 yuan and 4761 yuan, the year end urban and rural resident's savings deposit balance as high as 21.8 trillion yuan. The expansion of consumer demand has a solid economic base. While focusing on expanding consumer demand, we also need to select investment projects to increase investment, especially to expand the construction of infrastructure. China's infrastructure construction overall lag, the per capita highway mileage is only half the world average level, per capita railway mileage is only 1/3 of the world average level, public service facilities for the people's livelihood still have a lot of blank, public service, technological transformation, energy conservation and environmental protection, rural development and other fields need a lot of investment　　Both in the near term and in the long run, it is necessary and potential to ensure stable and rapid economic development and to maintain moderate growth in investment. Second, give full play to comparative advantages, consolidate and expand China's international market share comparative advantage is the basis of international trade countries to use their limited resources to provide a comparative advantage of goods and services, through international trade, can not only improve economic efficiency, but also promote economic growth. From the historical experience of the developed countries, whether it is after the industrial revolution in Britain, the United States after the Civil War, or Japan after the Second World War, it is through the opening and development of foreign trade to achieve rapid economic development. Many of the post-development countries and regions represented by the "Asian Dragons" have also achieved rapid economic growth through the development of export-oriented economies.　　Since the 1990s, with the development of economic globalization, the acceleration of integration of global markets, more frequent factor flow, the full use of international markets to accelerate their own development as the world's choice, many countries even to open up the international market as a national strategy. Since the reform and opening-up, China has grasped the historical opportunity of economic globalization, played a comparative advantage, actively used external demand, and promoted the rapid economic growth, and greatly enhanced economic strength. From the late 70 to the middle of the 90, China has effectively alleviated the bottleneck constraint of economic development by actively utilizing foreign exchange income, enlarging the import of important raw materials and technology equipment in short supply. After the middle of the 90 's, China's use of external needs to make up for the lack of effective domestic demand, maintaining a sustained and stable economic growth. At present, external need not only continue to provide market support for domestic development, but also play an important role in improving economic efficiency, upgrading industrial structure and independent innovation. Statistics show that 1978-2007, the annual real GDP growth of China reached 9.8%, not only significantly higher than the 6.1% annual growth rate, but also far higher than the same period of the world economy average annual growth of 3%, of which external demand for economic growth of annual contribution of about 20%, the yearAll pull the economic growth nearly two percentage points. At present, China's comparative advantage in international trade is no longer simply the labor cost advantage, but by the perfect infrastructure, strong industry supporting capacity, the quality of the continuous improvement of the labor force constituted by the comprehensive advantages, the development of foreign trade, stability of external demand foundation more solid. Although the international financial crisis has made a great impact on China's exports, it is difficult to fundamentally change the comparative advantages of China's cumulative formation. Only in terms of middle and low-grade products and consumer goods, such products in China's exports occupy a larger proportion of the daily life of foreign consumers is closely related to, therefore, in the importing country residents compressed high-end consumption in the case of China's middle and low-grade products and consumer goods demand may further increase.　　If we can give full play to the comparative advantages, solve the problems such as the financing difficulties faced by our export enterprises, curb the rising momentum of international trade protectionism, further improve the level of facilitation, and stabilize or even expand our international market share is entirely possible. Third, fully understand the importance of the coordinated development of internal and external needs under the current international financial crisis, the sharp reduction in external demand in the objective to expand domestic demand has created great pressure, in order to maintain long-term stable and rapid economic development, we must put the basic foothold of economic growth to expand domestic demand. But that does not mean ignoring or abandoning external demand.　　As an open economy, China's economy has been integrated into the world, domestic demand and external needs are the important driving force for steady and rapid economic development. In essence, domestic demand and external needs interact and promote each other. On the one hand, the rapid growth of domestic demand has laid a solid foundation for the expansion of the domestic market and expansion of production, can enhance industrial competitiveness, improve industrial supporting capacity, to further expand exports to create conditions; the increase in domestic research and technological equipment investment can lead to higher technological content and added value of export products, To promote the export of High-tech products, foreign direct investment as a component of investment in fixed assets, to expand external demand has a significant pulling role. For example, China's textile, light industry, home appliances, DVD and other products, after full competition in the country and then into the international market, now has a stable high international market share. On the other hand, external demand can directly boost domestic consumption, investment and government expenditure. Exports can directly drive employment, increasing residents ' income, stimulating domestic consumption, enlarging the scale economy and industrial agglomeration effect of external demand, helping to reduce the price of middle-grade consumer goods and promoting the upgrading of domestic consumption structure; external demand, as the final requirement, has a leading role and multiplier effect on related industries and their upstream and downstream industries. , the technological spillover effect resulting from the increase of manufactured exports can lead to domestic technological progress and industrial upgrading.　　Relevant research shows that export growth of 1% per cent, can stimulate the year consumption growth of 0.68%, to stimulate investment growth related to domestic capital formation 0.74%. To promote the coordinated development of both internal and external needs, we should not simply emphasize domestic demand or exaggerate the role of external demand. 2008, my ForeignTrade exports more than 1.4 trillion U.S. dollars, and foreign trade directly related to more than 100 million people. If we insist on domestic demand, the policy measures to promote stable growth of foreign trade are not in place, and once the decline of export is too large, it will inevitably lead to an increase in the number of enterprises to stop production and the rise of the unemployed, not only adversely affect the economic development and social stability, but also the policy measures to expand domestic demand in the country At the same time, if we exaggerate the role of external demand, we may neglect the leading role of domestic demand and delay the favorable opportunity of strategic adjustment of economic structure.　　In the long run, we should maintain the independence and autonomy of economy while stabilizing or promoting the external demand growth, prevent the external input of the economic fluctuation, prevent the external demand structure from aggravating the domestic resource supply and demand contradiction, and prevent the external need to enlarge the imbalance of investment and consumption.　　Iv. perfecting the institutional mechanism conducive to the coordinated development of internal and external needs to actively respond to the international financial crisis, the key is to give full play to our comparative advantage, to co-ordinate the overall situation of the international and domestic two, to adhere to the expansion of domestic demand and stability of the external needs of the integration, improve the internal and external need for coordinated development of institutional mechanisms, and constantly improve our economy's ability to resist risk. Every effort to expand consumer demand. One is to improve the sustainable consumption capacity of residents. The implementation of active employment policy, to increase the number of jobs, efforts to promote migrant workers and college graduates employment. Adjust the pattern of income distribution, improve the proportion of income of residents in national income, especially to improve the income of farmers and urban low-income residents. Perfect the Social security system, improve the basic endowment insurance, unemployment insurance and urban and rural social assistance system, improve residents consumption expectations. Second, invigorate circulation as the cut-in point of enlarging consumption. Improve the rural circulation network, in-depth implementation of the "Thousand Villages" market project, to promote the chain of operation to rural extension, to facilitate rural residents consumption. Strengthen the city community service function, perfect the city convenient consumption facilities, enlarge the city consumption. To support the trans-regional merger and reorganization of circulation enterprises, accelerate the development of chain operations and E-commerce and other modern circulation, reduce operating costs and sales prices. Third, to create a safe and secure consumer environment.　　To pay close attention to the circulation of food safety as a breakthrough, improve the circulation of public service platform, crack down on counterfeiting and other illegal acts, and promote market integrity system construction, so that people at ease consumption. Efforts to maintain the steady growth of foreign trade. One should increase policy support. Make full use of export tax rebate, export credit, export credit insurance and other WTO rules to allow the means to expand the international market for enterprises to support the strength. Improve the processing trade policy, promote the stable growth of processing trade and transformation and upgrading, while consolidating the traditional market and vigorously open up the new city often second to promote the benign interaction between trade and investment. Further improve the investment environment, optimize the use of foreign capital structure, to play the role of foreign investment enterprises in stabilizing external demand. Actively and steadily promote foreign investment cooperation, encourage enterprises to invest overseas to set up factories, contract projects, establish research and development centers and marketing networks. Third, we must create a good international environment. Actively promoting the Doha round of WTOTo perfect the multilateral trading system. Carefully implement the free trade zone strategy and actively promote the construction of the FTA with the countries concerned.　　We should actively and prudently resolve international trade disputes, oppose international protectionism and safeguard the legitimate rights and interests of our enterprises. Expand investment scale appropriately and optimize investment structure simultaneously. The scale of public investment should be expanded appropriately. To the major people's livelihood projects, economic and social development weak links, the overall relationship and long-term development of the major infrastructure as the main body, with railway traffic, Water Conservancy, energy conservation, environmental protection, social undertakings as the focus, appropriate expansion of government investment scale, guide and promote private investment. Second, the implementation of key industry adjustment and revitalization planning. In order to promote industry from large to strong, industrialization and information integration as the goal, increase key industries investment in technological transformation to enhance the overall level of key industries and international competitiveness. Third, we should increase the investment in independent innovation. According to the overall requirements of building an innovative country, we should strengthen the construction of science and technology basic capacity, increase investment in key technologies, cultivate high-tech industrial groups with independent intellectual property rights, and seize the commanding heights of future international competition.