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Li Wei

Li Wei: New Normal, New Stage and New Opportunities

To ring out the old year and ring in the New Year, on behalf of the Development Research Center of the State Council (DRC), I would like to wish all readers of the China Economic Times all the best for the New Year!

2014 marked the beginning of China's comprehensive and deepening reform. It was a year with arduous tasks in domestic reform and development against a backdrop of a changing world economic environment. China was in a special period going through its economic transition, experiencing the growth pains of restructuring and dealing with the consequences of previous stimulus policies. The country's downward economic pressure grew, structural adjustment brought growing pains, enterprise difficulties in production and management grew, and economic risks appeared. These were affected by factors such as overcapacity, changes in real estate and decrease in export growth. Under such a complicated and difficult situation, the?Central Committee of the Communist Party of China (CPC) and the State Council adopted a series of macro-control and structural reform measures adhering to bottom-line thinking and with a strong determination to keep economic operations generally stable for the whole year. In addition, employment steadily increased, major performance indicators stayed stable, and growing risks were put under control with economic structure making positive changes. Last year's economy, as a whole, was remarkable actually, and its yearly economic growth was expected to reach its target.

The Fourth Plenary Session of the 18th CPC Central Committee, held in Beijing in October 2014, adopted decisions on "major issues concerning comprehensively advancing rule of law", the first for the Party on law issues. In November 2013, the CPC Central Committee passed a decision on comprehensively deepened reform at its third plenary session. The two have extraordinary meaning in China's reform and opening-up.

The economic situation in and out of China will still be complicated in 2015, with economic globalization, world multi-polarization and social information continuing to develop. New technological revolution is about to make breakthroughs, and human development is faced with new historical opportunities. Meanwhile, challenges of climate change, financial risks and energy security remain huge. The world economy is still in the adjustment phase after the international financial crisis. Both the political and economic pattern faces broad and deep historical change. The world economy's slower growth will become a normal state with economies keeping differentiated. In addition, some uncertain factors, including the turmoil of international capital market, price fluctuations of bulk commodity and Ukraine's geopolitics crisis, make the world economic situation even more changeable.

2015 will be crucial for China's comprehensively deepened reform because it is not only the starting year for comprehensively advancing the governance of the nation by rule of law, but the last year of the 12th Five-Year Plan (2011-2015). The Central Economic Working Conference held lately has shown a clear direction for this year's economic work when the participants analyzed the development trend of China's nine economic sectors and pointed out that the economy is evolving into a stage with complex division of labor and more rational structure and is taking on a new normal of slower growth and better quality. President Xi Jinping made an important remark at the conference that has a practical meaning for unifying understanding of all Party members and guiding our future work.

Economic development entering a new normal of slower growth but better quality reflects the stage of China's economic and social development and is a general trend beyond the will of human beings. To have a profound understanding of it, adapt to it actively, guide it correctly and seize the new opportunities firmly are what we need to do in all economic work in 2015 and in the future. We should start with both strengthening our understanding and taking actions.

To have a better understanding of the new normal stage, it is important to realize that the new normal indicates that China's economic development has entered into a higher stage. It is a characteristic of the period when economic operation has been going through a transition from high-speed growth to mid-speed growth with economy emphasizing quality enhancement rather than quantity expansion. In addition, it is necessary to look at the risks and challenges in the new period correctly. As financial risks appear, a gap between the old and new driving force for development occurs, difficulty of macroeconomic equilibrium increases and there are more factors that would affect social stability.

When taking actions, we are required to adapt to the new normal positively and strive to seize some new opportunities. In doing so, the key is to maintain a stable macro economy, which is an important premise to deal with all kinds of relations in the new stage, and to unswervingly deepen reform and opening-up, which serves as the fundamental way out. The central government has adhered to the general keynote of "seeking improvement in stability" for three years in a row. In the new stage, stability is the prerequisite, and improvement is the final goal. Meanwhile, the new stage contains various new opportunities in economic restructuring, industrial structure upgrading and environmental pollution control, and we need to seize them. In view of China's new normal of economic development, the country needs driving force from accelerated reform and opening-up as well as rule of law. It also needs a high historical sense of urgency, a sense of responsibility and a sense of mission. It also needs spiritual support to tackle challenging difficulties and to make sure the smooth accomplishment of economic and social development goals.

The Development Research Center of the State Council (DRC), as an important think tank providing major decisions research and consultation for the?CPC Central Committee and the State Council, will follow the instructions made by President Xi Jinping on think tank construction. It will also abide by the Opinions on Strengthening the Construction of New Think Tanks with Chinese Characteristics. Based on new requirements and tasks from the?CPC Central Committee and the State Council, we will adjust our functions timely following the law of decision consultation and carry out pilots to build a world first-class and?high-end think thank with international influence in five years. We need to make efforts in the following aspects. First, we need to intensify research on major and difficult problems in economic and social development while studying the comprehensive, strategic and long-term issues that concern the overall situation. In particular, policy research should be problem-oriented so that the policy suggestions can be practical to decisions. Second, as an objective and professional think tank, we need to spare no efforts in third-party assessment for major reform programs, major policies and their implementation effect. We also need to increase our level of scientific, standard and professional assessment. Third, depending on our high-level experts and based on the unified arrangement of the?CPC Central Committee and the State Council, we need to interpret the major national public policies to the public and international community and increase our interpretation's accuracy, influence and social effects. We will use all our wisdom to forge ahead with determination and work together with our colleagues to make contributions to promote China's scientific and democratic decision-making, advance its modern governance system and ability, and strengthen national soft power.

2015 is also a crucial year for the China Economic Times' transformation development. On the one hand, as a member of the traditional media, the China Economic Times has to follow the rule of journalism and actively adapts to the new trend of media development while seeking its transformational development as the pattern of media and the way of public opinion have changed dramatically with the advancement of network and information technology. On the other hand, it is also a newspaper sponsored by the DRC, so it needs to seize the opportunity to pilot new Chinese think tank construction to provide readers with services and interpret policies with expertise, authority and sharp foresight. Also, it should bear the overall economic development in mind, try to correctly study and judge the economic situation, anticipate the economic policies, and provide reference and guidance for the economic behaviors of enterprises and individuals. Meanwhile, it needs to have a correct direction to deliver the strong voice of China's economic reform. It also needs to have accurate positioning, highlighting the features as a think tank newspaper. It is also important to speed up integration and development with new media to foster new advantages and improve leadership and team construction as well as internal management. The China Economic Times should maintain its independence to have its own voice and make a difference, striving to undertake its mission and to become a dissemination platform suitable for China's new think tank construction.

A few lines in a Mao Zedong's poem Reply to Comrade Guo Moruo - To the Tune of Man Jiang Hong goes like, "So many deeds cry out to be done, and always urgently; the world rolls on, time presses. Ten-thousand years is too long, seize the day, seize the hour!" The China Economic Times, which has had its 20th anniversary recently, needs to find its place in the new normal of slower economic growth, with an entrepreneurial spirit of seizing every minute and crisis awareness of reform for survival. It should discover and take opportunities in the construction of new think thanks with Chinese characteristics to make its contribution to realizing the Chinese Dream of building a well-off society in an all-around way and bringing about a great rejuvenation of the Chinese nation.

This is the 2015's?New Year?message given by Li Wei, President of the Development Research Center of the State Council (DRC).

Source: Jan 1, 2015, China Economic Times

 

 
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