This year, a new generation of Chinese leaders must stabilize the economy, maintain high employment rate, at the same time to avoid prices soaring and inflation and other phenomena, so as not to damage the reform to change the export-led growth model required.
Without a stable economy, a new generation of Chinese leaders will not be able to implement a series of China aims to solve the threat of future financial, industrial and income inequality, reform measures. If can not narrow the gap between the rich and the poor among the highest in the world, and to reduce the real estate bubble risk, there may even threaten the Communist regime. Agricultural Bank of China chief economist Xiang said: steady growth is a prerequisite for the implementation of the reform. The new leadership is facing many urgent problems. They must separate order of priority.
Many analysts think, priority among priorities is to make sure you don't deviate significantly from the 7.5% expected this year 's economic growth. Growth is too slow will threaten employment, too fast will lead to speculative investment increase. Example is the last few months of 2008. At that time, the global financial crisis caused by the world trade almost stagnant, China lost 20000000 jobs. Beijing was forced to take out 4 trillion yuan stimulus plan, the results lead to the real estate bubble, and the local government crazy borrow money to engage in infrastructure. Since then, China has been trying to tackle inflation and debt problems.
Beijing does not want to taste the taste again. Taking into account the export-oriented development mode according to China since 1978 and the inherent imbalance, the government must take action. A new generation of leaders must come up with ways, will be a large number of assembling the export of cheap goods manufacturers into a world-class manufacturers, while domestic consumption has become the main thrust of economic growth, to ensure a more balanced.
China's most significant imbalance in a population of 130-000-0000
. China does not lack the super-rich, but there are still 13% of the population lives on less than $1.25 a day below the poverty line, average annual disposable income of urban residents is only 3500 dollars. The Asian Development Bank in Beijing economist Feng Youlan said: the origins of inequality in economic growth mode choice 30 years ago. Must implement a comprehensive reform to remove the main restrictive factors.
In addition, many analysts believe that China 's reform is the Hukou system. Hukou reform will solve the problem of inequality, while expanding domestic demand, to balance the core of economic growth driving force. While boosting domestic consumption will be less dependent on exports. The fundamental reason in 2012 China's economic slowdown is the United States of America, EU debt, financial hardship weakening external demand. But in view of the importance of exports on the economy, so not to close, on the contrary, Beijing to enhance the value chain of Chinese enterprises.