The impact of the financial crisis on China

Economist Li Yining: The impact of the world financial crisis on China is limited

Time: November 17, 2008 10:02:58 China Finance Network

11 On March 13, Chinese economist Professor Li Yining answered reporters' questions at the "Lecture on the 30th Anniversary of China's Reform and Opening Up" held at the Cairo Marriott Hotel in Cairo, Egypt. He said that the current world financial crisis has had some adverse effects on the Chinese economy, but China's financial industry has not There has been no major impact. In order to prevent economic decline, China is taking a series of measures to ensure economic growth.

Professor Li Yining said that it is now the end of the year. At this time of year, Christian countries import large quantities of Christmas trees, toys and other Christmas gifts from China. However, this year, the number of containers exporting these gifts from China has decreased significantly. Zhejiang and Many factories in Guangdong have closed down and workers have lost their jobs. China's stock market and other securities markets have also been greatly affected, as companies have suspended production and are not performing well, causing the stock market to fall. Despite this, China's situation is different from that of the United States. China's financial industry has not been greatly impacted. There are three main reasons: first, China's financial innovation level is low and there are few derivatives; second, China's supervision of the banking industry is relatively strict. , is also relatively powerful; thirdly, China's residents' deposits are mainly deposited in state-controlled banks, such as Industrial and Commercial Bank of China, Bank of China and China Construction Bank. They have confidence in the banks and do not have to worry about losing their deposits in the banks, so this has not happened. However, the United States and other European and American countries are all private commercial banks. Residents are worried about losing their deposits. When there is a disturbance, ordinary people go to the bank to run.

Since China's exports have been affected and the economic growth rate has declined, China must make every effort to maintain economic growth. The Chinese government has recently introduced some measures to maintain economic growth, such as expanding domestic demand and stepping up plans to invest 4 trillion yuan (equivalent to 600 to 700 billion US dollars) in infrastructure construction within two years, including building railways, highways and ports. and a series of measures.

The Chinese government also plans to vigorously build low-cost rental housing to allow low-income groups to have houses. This approach can play two roles. First, the development of the real estate industry can drive steel and furniture Second, the development of industries such as building materials and building materials is because low-income families have housing, which can make their lives stable, which not only maintains social stability, but also expands their consumption needs, such as decoration, purchasing furniture, home appliances, etc.

When answering a reporter’s question about how to stimulate rural consumption, Professor Li Yining said that Chinese farmers have three problems that need to be solved. First, farmers who want to work in cities must get help from the government, and they must be given more technical vocational training. Training, if farmers have no skills, they will not make much money; secondly, individual farmers are weak, but the power of the market is strong, how to make the weak stronger? Letting farmers form professional cooperatives can make them stronger; third, although there are many farmers in China, the rural financial industry is underdeveloped, so the Third Plenary Session of the 17th CPC Central Committee spent a lot of effort on developing rural finance and small banks, so that The transfer of private credit from underground to above ground needs to be guided. If rural finance is revived, farmers' goal of increasing income and developing production can become a reality.

When talking about how to increase farmers’ income, Professor Li Yining said that it is time for China’s commodity prices to be reformed. China’s food prices are low, but the prices of fertilizers, pesticides, etc. are rising, which affects farmers. income. Rice in Thailand costs RMB 4 per catty, rice in Vietnam costs RMB 3.8 per catty, but the best Heilongjiang rice in China only costs RMB 1.2 per catty. Why not raise the price of grain produced by Chinese farmers? Because there is a question here, if the price of food increases, what will the poor in the city do? Economists suggest that while gradually raising the prices of agricultural products, they should increase wages for urban workers and provide food subsidies to low-income urban groups to solve this problem. This suggestion of economists has been adopted by the government, so it can now be gradually Increase the prices of agricultural products and make the prices of agricultural production materials more reasonable.

Economist Li Yining believes that the impact of the world financial crisis on China is limited

Our reporter from Cairo, Zhu Guocai, reported: On November 13, Chinese economist Professor Li Yining held a conference on "China's Reform and Opening Up" at the Marriott Hotel in Cairo, Egypt. "30th Anniversary Lecture" answered reporters' questions and said that the current world financial crisis has had some adverse effects on the Chinese economy, but China's financial industry has not been greatly affected. In order to prevent economic decline, China is taking a series of measures to ensure economic growth.

Professor Li Yining said that it is now the end of the year. At this time of year, Christian countries import large quantities of Christmas trees, toys and other Christmas gifts from China. However, this year, the number of containers exporting these gifts from China has decreased significantly. Zhejiang and Many factories in Guangdong have closed down and workers have lost their jobs. China's stock market and other securities markets have also been greatly affected, as companies have suspended production and are not performing well, causing the stock market to fall. Despite this, China's situation is different from that of the United States. China's financial industry has not been greatly impacted. There are three main reasons: first, China's financial innovation level is low and there are few derivatives; second, China's supervision of the banking industry is relatively strict. , is also relatively powerful; thirdly, China's residents' deposits are mainly deposited in state-controlled banks, such as Industrial and Commercial Bank of China, Bank of China and China Construction Bank. They have confidence in the banks and do not have to worry about losing their deposits in the banks, so this has not happened. However, the United States and other European and American countries are all private commercial banks. Residents are worried about losing their deposits. When there is a disturbance, ordinary people go to the bank to run.

Since China's exports have been affected and the economic growth rate has declined, China must make every effort to maintain economic growth. The Chinese government has recently introduced some measures to maintain economic growth, such as expanding domestic demand and stepping up plans to invest 4 trillion yuan (equivalent to 600 to 700 billion US dollars) in infrastructure construction within two years, including building railways, highways and ports. and a series of measures.

The Chinese government also plans to vigorously build low-cost rental housing to allow low-income groups to have houses. This approach can play two roles. First, the development of the real estate industry can drive steel and furniture Second, the development of industries such as building materials and building materials is because low-income families have housing, which can make their lives stable, which not only maintains social stability, but also expands their consumption needs, such as decoration, purchasing furniture, home appliances, etc.

When answering a reporter’s question about how to stimulate rural consumption, Professor Li Yining said that Chinese farmers have three problems that need to be solved. First, farmers who want to work in cities must get help from the government, and they must be given more technical vocational training. Training, if farmers have no skills, they will not make much money; secondly, individual farmers are weak, but the power of the market is strong, how to make the weak stronger? Letting farmers form professional cooperatives can make them stronger; third, although there are many farmers in China, the rural financial industry is underdeveloped, so the Third Plenary Session of the 17th CPC Central Committee spent a lot of effort on developing rural finance and small banks, so that The transfer of private credit from underground to above ground needs to be guided. If rural finance is revived, farmers' goal of increasing income and developing production can become a reality.

When talking about how to increase farmers’ income, Professor Li Yining said that it is time for China’s commodity prices to be reformed. China’s food prices are low, but the prices of fertilizers, pesticides, etc. are rising, which affects farmers. income. Rice in Thailand costs RMB 4 per catty, rice in Vietnam costs RMB 3.8 per catty, but the best Heilongjiang rice in China only costs RMB 1.2 per catty. Why not raise the price of grain produced by Chinese farmers? Because there is a question here, if the price of food increases, what will the poor in the city do? Economists suggest that while gradually raising the prices of agricultural products, they should increase wages for urban workers and provide food subsidies to low-income urban groups to solve this problem. This suggestion of economists has been adopted by the government, so it can now be gradually Increase the prices of agricultural products and make the prices of agricultural production materials more reasonable.

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