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Development and Reform Commission Wang Yiming: China must promote large-scale industrial mergers and reorganizations within 3-5 years


Release time:

Jun 20,2013

Wang Yiming, executive vice president of the Macroeconomic Research Institute of the National Development and Reform Commission, said on the 15th that due to the high debt ratio and deficit ratio of local governments, the expansionary policy space on the demand side in the future has become smaller and smaller. The important aspect is to promote large-scale mergers and reorganizations of industries within 3-5 years. Wang Yiming pointed out that the adjustment of the supply side needs to relax control, start with institutional changes, strengthen the function of market allocation of resources, strengthen the degree of competition in the market, enhance the efficiency and flexibility of supply, eliminate backwardness through competition, and create new demand through supply. Wang Yiming said that at the policy level,

Wang Yiming, executive vice president of the Macroeconomic Research Institute of the National Development and Reform Commission, said on the 15th that due to the high debt ratio and deficit ratio of local governments, the expansionary policy space on the demand side in the future has become smaller and smaller. The important aspect is to promote large-scale mergers and reorganizations of industries within 3-5 years.

Wang Yiming pointed out that the adjustment of the supply side needs to relax control, start with institutional changes, strengthen the function of market allocation of resources, strengthen the degree of competition in the market, enhance the efficiency and flexibility of supply, eliminate backwardness through competition, and create new demand through supply.

Wang Yiming said that at the policy level, the first is to promote large-scale mergers and reorganizations of industries. This process is estimated to take 3-5 years. Although it takes a long time, it must be done because backward production capacity and excess capacity must be cleared.

The second is to support qualified enterprises to establish R & D platforms to promote the transformation of Chinese manufacturing from processing and assembly to R & D-based manufacturing on the supply side.

The third is to expand the development space of production-oriented service industry, including R & D and design, marketing network, standards, logistics and distribution. These specialized services are indispensable links in providing China's manufacturing value chain. China has a serious surplus of processing and assembly, and needs to enter the high value chain.

Wang Yiming also believes that some excess capacity can be transferred out through "going out" to establish a global production and operation base and production and operation network. In addition, it is necessary to further expand the demand, including promoting the citizenization of migrant workers, the reform of income distribution, and the cultivation of new consumption formats.