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In 1987, two leaders, Deng Xiaoping and Chen Yun, successively approved an article entitled “the possibility and requirements of taking the development strategy of the international circular economy”. The author is Wang Jian, a scholar of the Economic Research Institute of the State Planning Commission.
On November 1, 1987, Wang Jian published an article “the possibility and requirements of taking the development strategy of the international circular economy” in the internal journal “dynamic sample” of Xinhua news agency, and put forward the proposal of “two sides outside, two sides in and two sides out”.
After seeing it, the central leaders gave instructions on the same day: it was printed and distributed to the comrades of the State Council and the central financial and economic group for reading. Then, major media across the country began to vigorously promote “big in and big out” and participate in the international economic cycle.
This has promoted the implementation of “big contracting” of finance, foreign investment and foreign exchange in all provinces, and the implementation of input-output general contracting in the whole industry of railways, petroleum, petrochemical, coal, metallurgy and nonferrous metals.
It should be said that this article and subsequent policies set off a major change in the “external circulation” that will last for the next three decades.
Today, let’s talk about:
From external circulation to internal circulation, what is the key?
You should know that there are external reasons why China began to choose external circulation in 1987
Conditional.
On the one hand, at that time, there were great regional differences in China. The economic and cultural conditions of mainland China and coastal areas were very different. Beijing, Shanghai and Guangzhou were already urbanized, and most mainland provinces were still in the most primitive small-scale peasant economy. Given the productive forces and resources at that time, it was impossible to develop the economy of all parts of the country rapidly and become rich at the same time.
On the other hand, due to the need to contain the Soviet Union and a series of external events, the international economic situation at that time was relatively favorable to China. It would be a pity if we did not make full use of this opportunity and advantage to develop the coastal areas that were relatively easy to develop faster as soon as possible.
Finally, at that time, the domestic productivity and materials were very tight. Whether it is steel, cement, chemicals, energy or even textiles, there is a serious shortage. If the processing industry in coastal areas only relies on domestic raw materials, its development is bound to be greatly restricted. With the increasing demand for raw materials in the coastal areas and the growing economic development in the mainland, if we continue along the original path, the contradictions between the coastal areas and the mainland over raw materials will become increasingly acute.
Therefore, if China wanted to further develop at that time, it must lead, plan and step by step to the international market, further participate in international exchanges and international competition, and vigorously develop an export-oriented economy.
And this is not a
“External circulation”
It can be done in just three words. It requires many supporting policies and a series of problems that restrict the development of export-oriented economy.
Including but not limited to the policy of focusing on the development of labor-intensive industries, the relevant policies of intellectual property protection, the reform of the foreign trade system, the mechanism of state-owned enterprises, and the problem of coastal industries “going abroad at both ends, going in and out at large”, etc.
If the most critical point is to further reduce the cost of domestic factors of production, including but not limited to land costs, energy costs, environmental protection costs, of course, also include labor costs, and “food costs” closely related to labor prices.
After 30 years, what changes have taken place in the “international cycle”?
In the new development stage, implementing the new development concept inevitably requires the construction of a new development pattern, which was recently published by Qiushi magazine, it was clearly pointed out:
Building a new development pattern “is the first move to seize the initiative of development, not a forced move or an expedient measure”, “it is an open domestic and international double cycle, not a closed domestic single cycle”, “it is a domestic big cycle based on the national unified big market, not a self small cycle”.
It is emphasized that:
Building a new development pattern “is a systematic and deep-seated change that has a bearing on the overall situation. It is a strategic plan based on the present and with a long-term perspective”. Fundamentally speaking, “it is an inevitable choice to adapt to the requirements of the new stage of China’s development and shape new advantages in international cooperation and competition”.
If we compare the historical period and situation of the article “the possibility and requirements of taking the international circular economy development strategy”, we can find that:
1? At that time, the overall regional differences in China were very large, and through decades of construction, there was no qualitative difference between coastal provinces and inland provinces in terms of quantity. Especially in terms of culture, the whole country has basically achieved the goal of speaking the same language and eating the same melon with the help of extremely rich media resources.
2? At that time, the international environment was relatively favorable to China. Even after the collapse of the Soviet Union, there was a wave of suppression and containment against socialist China, but the overall situation was dominated by cooperation. This is mainly not because of what China has done, but because the United States wants to promote globalization and seek greater benefits through globalization. Today, with the “times have changed” and the further contraction of American globalization, such an external opportunity for the world must have passed.
3? At that time, the domestic productivity and materials were seriously insufficient, and the supply exceeded the demand. Through more than 30 years of accumulation, China’s production capacity of “physical products” has become the absolute first in the world, and even twice that of the United States in some core industries of the national economy and people’s livelihood. This precipitation of industrial production capacity is the basis for us to promote internal circulation.
Therefore, the internal circulation that we propose today (to be precise, it is proposed two years ago) is not simply “internal circulation”. If the key of “external circulation” is to reduce the cost of domestic factors of production, then the key of “internal circulation” is actually how to “increase” the cost of factors of production.
Including but not limited to land costs, energy costs, environmental protection costs, of course, labor costs, and “food costs” closely related to labor prices.
Because one of the most critical aspects of internal circulation is to “accelerate the cultivation of a complete domestic demand system”, and said:
This is an important foundation for unblocking the national economic cycle and strengthening the dominant position of the domestic big cycle.
There are actually two problems with domestic demand:
First, we need to make some people rich
Second, we need to make these people willing to spend money after they have money
Then, who has the money to better promote consumption?
Is Li Yifeng relying on xxxxx?
Or rely on Mr. Zhou of XXX?
Not at all! The key is
Getting rid of poverty and tackling tough problems is the most important thing in my heart. This time, I made a special trip to visit the homestay relatives to find out whether the “two worries and Three Guarantees” have really been implemented and what problems still exist. Whether we are well-off or not depends on our fellow townspeople and how well we are doing in fighting poverty. On the road to a well-off society in an all-round way, we must not lack one. Development is socialism, and development must be committed to common prosperity. The more the country develops, the better it must ensure the basic livelihood of the poor people.
——2019, Chongqing investigation