(Interview between the two sessions) Lin Yifu sees the "14th Five-Year Plan": the development engine should "love the new and never tire of the old"

　　China News Service, Beijing, March 6th, title: Lin Yifu sees the "14th Five-Year Plan": the development engine should "love the new and never tire of the old"

　　China News Agency reporter Xia Bin

　　The draft of the "14th Five-Year Plan" and the 2035 long-term goal outline has been submitted to the Fourth Session of the 13th National People's Congress for review. Among them, it is proposed to accelerate the construction of a new development pattern with domestic and international cycles as the main body and mutual promotion of domestic and international cycles.

What are the considerations?

Lin Yifu, member of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference and deputy director of the Economic Committee, gave his thoughts in an interview with China News Agency and other media recently.

　　"To use an analogy, a large aircraft carrier and a small fishing boat encounter violent storms while sailing, and the large aircraft carrier is less affected, (and) the boat may capsize. Therefore, the higher the proportion of the internal circulation, the more autonomously controllable (partially)." In Lin Yifu's view, the key to the new development pattern is to form a major domestic cycle and increase the proportion of the domestic cycle.

　　Data show that China's exports accounted for 17.4% of GDP (gross domestic product) in 2019. In other words, the national economy had a domestic cycle of 82.6% that year. In fact, it has basically formed a pattern in which the domestic cycle is the mainstay.

But Lin Yifu believes that this is not enough to build the "weight" of the domestic big cycle needed to build a new development pattern.

　　He further stated that the U.S. exports accounted for 7.6% of its GDP in 2019, while Japan’s data was 13.4%, both lower than China.

The reason is that the United States and Japan are both high-income economies. The service industry accounts for 80% and 70% of GDP respectively. Many products in the service industry are not tradable. The higher the proportion of the service industry in GDP, the lower the proportion of exports in GDP.

　　"The most important thing is to rely on the increase in income level." Lin Yifu gave a way to increase the proportion of domestic circulation.

He believes that the higher the income level, on the one hand, it will increase the proportion of China's economy in the world, and on the other hand, it will increase the proportion of the service industry in GDP, and the proportion of domestic circulation will also be further increased.

　　How to increase China's per capita income?

Lin Yifu said: "Improve income levels with development." In this way, we must improve economic efficiency and release development potential, and this must rely on comprehensively deepening reforms to allow the market to play a decisive role in resource allocation, such as improving the financial system and eliminating the household registration system. Obstacles, promote the flow of labor, and implement land policies; at the same time, the government plays a good role, allowing effective markets and effective governments to simultaneously exert their efforts.

　　Regarding China's development engine during the "14th Five-Year Plan" period, Lin Yifu emphasized that "the new will never tire of the old".

　　"Traditional engines cannot be ignored." Lin Yifu said that there is still a gap between China and developed countries and it is still catching up.

For example, in the manufacturing industry, the same equipment can be sold for 5 million US dollars in Germany and 1 million US dollars in China. Innovation has an implication of using newer technologies to produce better products in existing traditional industries.

　　"The new economy has brought us many opportunities." Lin Yifu said, big data, artificial intelligence, cloud computing, biotechnology, new energy, and new materials have all given China many opportunities for overtaking in corners.

At the same time, China’s economy has many production and consumption activities. In the process, a large amount of data has been accumulated. When data is transformed into a digital economy, production efficiency can be further improved, and waste in production and consumption should be reduced. Therefore, China should be fully utilized as a company. With a population of 1.4 billion, the advantage of a big country with the most complete industrial chain, coupled with technological innovation, to improve China's development and the quality of people's lives, and to obtain new sources of growth.

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