1. China has become a veritable economic power
In the past 27 years of reform and opening up, the Chinese people have maintained an average annual economic growth of 9.6% with their hard work, courage and perseverance. The growth rate has created an Eastern miracle that has attracted the attention of the world. In the past 27 years, China's economic aggregate has increased 11 times, its comprehensive national strength has been significantly enhanced, and people's lives have achieved several major historic leaps from getting rid of poverty, solving the problem of food and clothing to basically achieving a moderately prosperous society. The influence of the "China factor" continues to expand. China has become a veritable economic power, and the Chinese economy has become an important force in promoting world economic growth.
(1) The economic aggregate ranks fourth in the world
In 2005, China’s GDP reached 18.3085 billion yuan, equivalent to 2.235 billion U.S. dollars based on the average exchange rate that year, accounting for Its share of the world economy increased from 1.8% in 1978 to about 5% in 2005, making it the fourth largest economy after the United States, Japan and Germany.
(2) The output of many products ranks among the top in the world
In 2005, my country’s steel, coal, and cement output were 350 million tons, 2.19 billion tons, and 1.06 billion tons respectively, accounting for to about 1/3 of the world's total production. The output of agricultural products such as cereals, meat, cotton, peanuts, rapeseed, and fruits has also ranked first in the world for many years in a row. Among industrial manufactured goods, China ranks first in the world in terms of output of more than 130 products.
(3) The total foreign trade volume ranked third in the world
In 2005, China’s total import and export volume reached 1.4219 billion U.S. dollars, an increase of 23.2% over the previous year, accounting for the total world trade The proportion of China's trade increased from 0.79% in 1978 to 6.73%, and its ranking in the world's total trade volume rose from 29th in 1978 to 3rd, second only to the United States and Germany. China's development cannot be separated from the world, and the world's development needs China. The interaction between China and the world economy continues to deepen.
(4) Foreign direct investment ranks first among developing countries for many years in a row
The huge market potential, low factor prices, stable social and political environment and constantly improving investment environment make China has become a hot spot for foreign investors. From 1979 to 2005, China's actual utilization of foreign direct investment reached a total of US$622.4 billion, ranking first among developing countries in absorbing foreign direct investment for eleven consecutive years since 1995.
The rapid development of China's economy has increased the international influence of China's economy. By the end of May 2006, China's foreign exchange reserves had exceeded US$900 billion, ranking first in the world. China is increasingly internationalizing, becoming an increasingly important part of the world economy, and its contribution to global economic growth is gradually expanding. According to World Bank data, from 2000 to 2004, China's economic growth contributed an average of 15% to world economic growth, second only to the United States, and has increasingly become an important booster of world economic growth.
2. China is not yet an economic power
At the same time, we should also clearly realize that although China is already a global economic power, it is not yet an economic power. .
(1) The per capita level of China’s economy still ranks 110th among the world’s major countries and regions
According to the calculation of the International Monetary Fund, China’s per capita GDP in 2005 was only 1,703 The U.S. dollar is only equivalent to 1/25 of the United States, 1/21 of Japan, and 1/4 of the world average. It is roughly equivalent to Congo, Ukraine, Morocco and other countries. It still ranks 110th in the world.
(2) The efficiency of China’s economy is not yet high
Due to the low technical content and low added value of products, China’s rapid economic growth is still extensive. Relying on high investment and high consumption, the efficiency of resource use is still relatively low. In 2004, China's consumption of raw coal, iron ore, steel, alumina, and cement accounted for 25% to 40% of the world's total consumption respectively, which is significantly higher than the level of economic output accounting for about 5% of the world's total. Compared with the world's advanced level, China's coal consumption for thermal power generation is 22.5% higher, energy consumption per ton of steel for large and medium-sized steel companies is 21% higher, and cement's comprehensive energy consumption is 45% higher. Resources and the environment have increasingly become a constraint on China's economic growth.
(3) Products with low technical content and low added value
In the 2006 international competitiveness ranking of the world's 60 major countries and regions published by the Lausanne School of Management in Switzerland, although China Mainland China's international competitiveness has improved from 31st in 2005 to 19th, but it is still clearly not commensurate with its overall economic ranking.
From the perspective of the export composition of Chinese products, large scale and low prices are our advantages. However, most of the export products with real competitive advantages are produced by foreign-funded enterprises, with domestic independent research and development and independent control. There are very few products with intellectual property rights. In 2005, China's total exports were US$762 billion, of which exports by foreign-invested enterprises accounted for 58.3%. The value of exporting 100 million pieces of textiles is only equivalent to that of an Airbus.
Poor independent innovation capabilities of enterprises and low self-sufficiency rate of key technologies are the main problems faced by Chinese enterprises. In 2004, the coverage of independent innovation activities carried out by China's industrial enterprises above designated size was only 6.1%, and the R&&D investment intensity was only 0.56%. Among them, the R&&D investment intensity of enterprises with independent innovation activities was 1.46%, which is much lower than the international consensus that only Only enterprises with an R&&D investment intensity of more than 5% have sufficient market competitiveness. Most invention patents and important scientific and technological innovation achievements in the world are in the hands of a few developed countries. According to data from the State Intellectual Property Office, only about 30,000 companies in China have core technologies with independent intellectual property rights, 99% of companies have not applied for patents, and 60% of companies do not have their own trademarks. In the 2005 "Top 500 World Brands", the United States has 249, France has 46, Japan has 45, and mainland China has only 6. It is a typical "big manufacturing country, small brand country", and the brand value is also very low.
China’s large civil aviation aircraft, high-end medical equipment, integrated circuit manufacturing equipment and optical fiber manufacturing equipment are basically imported from abroad; more than 80% of China’s chip patents, 70% of CNC machine tools and textile machinery manufacturing More than 90% of the above patents and automobile manufacturing patents are in foreign hands. Due to the lack of core technology, mobile phones, computers, and program-controlled CNC machine tools produced in China have to pay 20%, 30%, and 40% of their prices respectively as patent fees.
Due to the lack of core technology, independent intellectual property rights, and world-renowned brands, China is at the low end of the global value chain in the international division of labor. From the perspective of global division of labor, the global value chain is divided into three major links: the first is the technical link mainly based on design and research and development; the second is the production link mainly based on processing; the third is the mainly wholesale, retail and after-sales service Marketing link. In terms of value-added capabilities, the above three links present a U-shaped curve from high to low and then upward, which is called the "smile curve". China is currently mainly engaged in production links with low added value and at the bottom of the "smile curve". Since it does not master the core technology of product production, and the product sales and service networks are mostly controlled by foreign businessmen, China can only earn meager processing fees, and has long been at the low-tech, low-value-added level in the international division of labor. The Windows operating system pre-installed on some personal computers accounts for about 50% of the sales cost of the PC; the profit of a domestic car weighing more than one ton is sometimes not as good as an imported car EFI that only requires a few kilograms of materials. System profits.
3. Measures that must be taken to realize the transformation of China’s economy from large to strong
(1) Guided by the Scientific Outlook on Development, strive to promote the transformation of economic growth mode
China's current extensive growth model characterized by "high input, high consumption, low output" has achieved rapid economic growth and rapid expansion of economic scale in a relatively short period of time, but it has also paid a heavy price at the same time. . If the growth pattern is not changed as soon as possible, it will inevitably affect the sustainable development of the economy and be detrimental to the growth and development of the Chinese economy.
To achieve a fundamental change in the mode of economic growth, we must first achieve a change in ideological concepts, completely change the performance evaluation system of "discussing merit based on speed", correctly view the GDP indicator, strengthen social development, and sustainable development. development and people’s quality of life. It should be pointed out that changing the concept does not mean to artificially slow down the development speed, nor does it mean not to stop development, but to promote scientific development, sustainable development and quality development.
Only through sustainable development can the foundation for a bigger economy be consolidated, and the transformation from big to strong be finally achieved, and problems such as "emphasis on increment over stock" and "emphasis on scale over quality" in economic growth be solved during development. Secondly, it is necessary to further deepen the institutional reform and accelerate the formation of a mechanism that is conducive to the transformation of economic growth mode. In particular, it is necessary to accelerate the transformation of government functions, standardize government behavior, make it in place and not overstep, and give full play to the fundamental role of the market in allocating resources. effect.
(2) Strive to make enterprises bigger and stronger
Enterprises are the backbone and cornerstone of realizing the transformation of China's economy from large to strong. Today's international economic competition is largely a competition between enterprises from various countries. The number of large multinational companies with international competitiveness often represents a country's economic strength. Relevant research data shows that the world's 64,000 multinational companies control one-third of global production, two-thirds of international trade, 70% of technology patents, and 90% of international direct investment.
Under the conditions of market economy, enterprises directly face the market. Out of the need for survival and development, the inherent need and motivation to become bigger and stronger is the strongest. From a national strategic perspective, supporting enterprises to become bigger and stronger is also an important basis for coping with fierce international competition and actively participating in international economic exchanges and cooperation. The key to supporting enterprises to become bigger and stronger is to create a good environment for the development of enterprises and form a good atmosphere in the whole society that supports enterprises and respects entrepreneurs. The government should strengthen its service and coordination functions, maintain market order, break regional and compartmentalization, and strive to create a fair, just and open competitive environment for the development of enterprises. Through various channels, we will promote the establishment of a number of large-scale multinational enterprise groups with international competitiveness and actively encourage enterprises to develop and grow in international competition.
(3) Strive to create a good environment for independent innovation
“Innovation is the soul of national progress and the inexhaustible driving force for national prosperity.” It is the reason why China’s economy has grown from big to strong. important foundation and guarantee. To a large extent, independent innovation capabilities determine national competitiveness. Improving independent innovation capabilities requires the joint efforts of governments, enterprises, and individuals. It requires continuous reform and innovation of systems and mechanisms. It also requires learning from the mature experience of developed countries, giving full play to the "latecomer advantage" and catching up. It is necessary to give full play to the core role of the government in the construction of innovation mechanisms and innovation environment, accelerate the construction of a technological innovation system with enterprises as the main body, market orientation, and integration of industry, academia and research, and implement tax, financial and government procurement policies that support independent innovation. It is necessary to strengthen the dominant position of enterprises in independent innovation, encourage enterprises to increase investment in research and development, promote the construction of enterprise technology research and development centers, and focus on supporting a group of backbone enterprises in the industry that master core technologies. It is necessary to create an institutional environment that encourages and protects independent innovation. Vigorously safeguard the rights and interests of innovative enterprises and innovators, resolutely crack down on various monopolistic behaviors that harm market competition, and stimulate technological innovation through competition. The foundation of independent innovation is education. We must adhere to the people-oriented approach, pay more attention to educational development and human capital investment, advocate an innovation culture that inspires people to forge ahead, be good at discovering, cultivating and gathering all kinds of scientific and technological talents, and comprehensively improve our country's independent innovation capabilities.
Conclusion
More than 20 years of reform and opening up have brought our country into the ranks of economic powers. Today, China has a stable society and sustained and rapid economic development. Our country’s economy is facing good challenges from becoming big to strong. development opportunities. As long as we strengthen our confidence, take advantage of the situation, focus on strengthening independent innovation capabilities, and stimulate the innovative spirit of the entire nation, we will surely be able to achieve a historic leap in China's economy in a relatively short period of time and realize the great rejuvenation of the Chinese nation!