Reform, not relief, for China

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This is the message from economists, including those in Beijing University is highGuangua College of Management. Academics often participate in Bikin’s high schools with policy makers.

The continuous decline in prices should not be overlooked, but they refer to the need for more serious changes-as China is preparing its “fifth plan”. It is a national plan for social and economic development for the period from 2026 to 2030. China ends its fourteenth plan this year, and it is expected to reveal details during the next five years in the next months.

“When we talk about the fifteenth plan, the main issue is how to grow productivity.”

It specifically indicates “total factors productivity”, a measure of economics productivity gains from technology, innovation, savings size or policies, without adding more employment or capital.

According to the International Monetary Fund, Total TFP growth in China It decreased from 4.1 % in 2000 to 2.6 % in 2010, and a decrease in 2006. Liu believes that Chinese TFP needs to grow at least 2 %.

Liu said that to achieve this purpose, technological innovation is an important part of the next five -year plan. But he added that institutional reform is less important.

The Chinese Communist Party’s grip on the state and its institutions enables it to have a greater impact on the economy more than the United States, for example.

“80 % of the total productivity of Chinese factors comes from institutional reform,” Economist Zhu Tianyung in Category In the Chinese News News CAXIN, translated by CNBC. Zhou is the former Vice President of the International Institute of Strategy at the Central Party School, and the Higher Education Foundation in China for the leaders of the training parties.

Zhu noted that the definition of textbooks for technology as a way to enhance productivity does not necessarily apply in China, as business and consumer interests are restricted in certain areas. “Without reforming the economic system, there will be no medium growth to the highest speed.”

All this may seem somewhat academic for discussing medium markets more focused on contraction, industrial excess pressure and indirect impacts of commercial tensions. But the general debate is limited in China. In a country where leaders work by building a consensus behind closed doors, politics signals come largely from the main phrases in government documents and high -level speeches.

Chinese President Xi Jinping led a high -level financial and economic committee meeting on July 1, which called for improving the understanding of government officials of how to evaluate their performance. According to government media reading.

Routine assessments [of officials] Not only can focus on the total domestic product that has grown Xi said in another high -level meeting this month, “

The current system also contributed to the unintentionally assessing government officials’ performance in excessive cases in China, as industries produce more goods than the market can absorb, according to Goldman Sachs.

Hui Chan, the chief economist in Goldman Sachs, said in a report on Monday that local authorities stimulate revenue collecting even if manufacturers lost money under the current production -based tax system.

She added, “It requires the solution to the immunity problems in obtaining a different incentive structure to evaluate and promote local officials.”

“None of these basic modifications will be easy or fast implementation.”

With the slowdown in economic growth in China over the past few years, Beijing has stressed the need for “high -quality” development. But the country is still coming out of a big deal from its gross domestic goal, which is 5 % this year.

Liu Liu said it is possible that China will indicate a growth goal less than 4.5 % to 5 %. But more importantly, the local authorities may be able to focus more on consumption, rather than investments, which have contributed to excessive issues.

The Chinese authorities have risen from plans to support employment Improving social welfare. But politicians have so far avoided the collective cash bulletins that the United States and Hong Kong have gave the population to stimulate spending after the epidemic.

In a crowd of policy makers, members of the Grand Party are also expected to hold a meeting of political policy to discuss the economy by the end of the month. But analysts do not have great expectations.

Zong Liang, a former chief researcher at the Bank of China, said that with the first half of the year in books, the stimulation volume has already been set, and politicians turn their attention to the next five years, said Zong Liang, the former chief researcher at the Bank of China.

He expects policymakers to give priority to investment consumption and tilted balance towards corporate interests, noting that the state has played a greater role in the past five years.

But he warned that Beijing will remain cautious about the risks that could arise from relaxing a lot of control.

Old customs may die severely.

China follows excessive discounts. Prime Minister Lee Qiang last week called for more Organizational control of the electric car price war. The market organizer later stated on Friday that he met JD.com, Meituan and Alibaba’s Eleme, and called them to that Rightly competed.

The US -Chinese trading truce set for extension. US Treasury Secretary Scott Bessin said on Tuesday that it will be possible to extend the deadline for the next trade date of President Donald Trump with China when he meets his Chinese counterparts in Stockholm next week.

Economic uncertainty remains. China maintained Standard lending rates are fixed On Monday, as the country continues to deal with weak consumer feelings and soften growth. But the wealthy in the country feels Just as it is bad in the economy As they did during the epidemic, according to the consulting company Oliver and Iman.

China and Hong Kong shares rose on Wednesday amid a wider rise in the region, after US President Donald Trump announced that he had completed a “huge deal” with Japan, which it had identified Definitions 15 % On the country’s exports to the United States

CSI 300 increased in China by 0.02 % while Hong Kong Hang Singh Fahras – Which includes major Chinese companies – gained 1.27 % from 3:30 pm local time (3:30 am EST). The Hang Seng Tech Index, which tracks the largest technology listed in Hong Kong, increased by 2.14 %. Data from LSEG showed that the main righteous standard rises about 4.7 % so far.