Alluring 2009

Alluring 2009

Financial crisis signifies that the global mainstream commercial model, typically the Wall Street, has evidently let down, as the development of the world demands a new model with new vitality. Primary emerging markets like China are injecting new vitality into the global economy and China's commercial value has been preliminarily recognized by the whole world – In light of the scale of this exhibition, China should possess enough self-confidence. As pointed out by a senior market critic in the field of engineering machinery, even if the world capital shrinks, it can still create more wealth via circulation, which is by nature unchangeable. The flowing capital will definitely select the fastest developing country, so that's why most international magnates make great investment in China. I, myself, show a good prospect to the Chinese market.

Two decades ago, the tide to "exchange markets for technology" was really overwhelming, but at present, this kind of opinion is more and more questioned: markets are limited, so once they are exchanged, it would be a tough job for us to take them back; technology is not necessarily acquired after the markets are exchanged, like an old saying goes, to suffer a double loss instead of making a gain; eventually, China would become a dependent country with no market nor core technology.

Let’s retrospect a bit earlier, after the inauguration, President Roosevelt immediately made every effort to set up public facilities, wherein roads are highly spoken of by later generations. He expanded government expenditures to make up for private investment, for the purpose to decrease the gaps arisingfrom and solve austere problems of employment. The "Roosevelt's New Deal" on the books is dwelled upon with great relish, because it helped the capitalist system of the U.S.A weather through the economic disaster during 1929 to 1933. The past that happened more than 70 years ago might make us clear that: Going out is definitely correct, but the situations of global economy require us to be more clear-headed, in fact, the largest market is ours.

As described by the official of the exhibition, this BMW (China) Exhibition truly realized the internationalization of exhibitors, visitors, exhibition operation, product quality and exhibiting mode, which symbolized that the long-term stability of China's economy attributes to its tremendous force therein.

"To maintain economic growth" becomes the primary task of the current macroeconomic control.

When the Subprime Mess of the U.S.A upgrades to the world financial crisis, the primary western economies suffer from increasing risks of recession. Domestically, such key mainstay industries as real estate, steel and automobile are dramatically decreased in terms of production and marketing. So, to maintain stable and fast economic growth shall be taken a top priority in macroeconomic control in China.

On 17^th October, as pointed out at the Executive Meeting of the State Council, we shall take flexible and cautious macroeconomic policies and release pertinent policies and measures regarding finance and taxation, credit and foreign trade, etc without delay, so as to maintain stable and fast economic growth.

After that, a package of measures to maintain stable economic growth is launched:

――In a bid to stabilize the production of grain, increase incomes of the peasantry, stimulate rural consumption and expand domestic demands, the National Development and Reform Commission proclaimed to further implement the benefiting-farmers policies on 20^th October, which include: organize procurement of agricultural products in full swing, substantially raise the minimum purchasing prices of grains produced in 2009 as well as allowances for farmers who cultivate grains.

――In a bid to add investments and expand domestic demands, at the Executive Meeting of the State Council on 21^st October, the infrastructure construction shall be strengthened, thus a batch of construction projects on roads, airports, nuclear power plants and pumped-storage hydroelectric plants, etc are approved; also, the progress of first phase construction on the eastern lines in the South-north Water Transfer Project shall be accelerated.

In the same day, in a bid to stabilize the export, the Ministry of Finance and the State Administration of Taxation proclaimed to properly increase the rate of tax reimbursement for export from 1^st November, 2008, which mainly targets the labor intensive commodities with high technology and high added value, such as textiles, clothing and toys, etc. Next day, the Ministry of Finance also proclaimed to input more support for poor students, special care & relief and housing guarantee, etc, so as to improve people's livelihood, expand domestic demands and guarantee the basic life of low income masses and special communities.

In addition, to stabilize the real estate market, the Ministry of Finance and the State Administration of Taxation proclaimed that the adjustment on taxation policies concerning personal housing transactions was carried out, specifically, reducing the housing transaction tax; also, the People's Bank of China proclaimed to decrease the lending rate of accumulation funds for personal housing as well as enlarge the lower limit of commercial lending rate for personal housing.

On 25^th October, The Prime Minister Wen Jiabao said that China has regulated the macroeconomic policies, i.e., to maintain stable and fast economic growth is prioritized, while restraining currency inflation and keeping balance of international payments.

Fiscal and monetary policies will be oriented to maintain stable economic growth.

In the wake of the recession of key economies in the Europe and America as well as primary export markets of China, the deficiency of external demands would outshoot, thus to further expand domestic demands shall be the major driving force to maintain China's stable and fast economic growth.

On 9^th November, the Executive Meeting of the State Council proclaimed that major adjustments shall be made on macroeconomic policies, specifically, fiscal policies shall turn from "steadiness" to "positiveness", while monetary policies shall be properly loosened; meanwhile, the enormous investment projects worth of RMB 4 trillion Yuan will be carried out in the coming two years, which clearly and definitely proposes the requirement of "faster and weighty actions, pertinent and pragmatic measures".

On 12^th November, the Executive Meeting of the State Council also determined to carry out four implementing measures to expand domestic demands and promote economic growth.

On 19^th November, The Executive Meeting of the State Council determined six measures to promote the healthy development of the light textile industry, so as to further support the light textile enterprises and help them tide over difficulties.

After a week, the People's Bank of China proclaimed a substantial interest rate cut, the range of which was the maximum in eleven years.

On 28^th November, the Political Bureau of the Central Committee of the Communist Party of China held a meeting, which proposed that to maintain stable and fast economic growth shall be taken as a top priority for economy in the coming year.

On 3^rd December, the Executive Meeting of the State Council also adopted nine policies to promote economic development via finance.

Lately, various regions in China and the departments concerned all rapidly initiate and implement measures to expand domestic demands. The central investment of 100 billion Yuan in the 4^th quarter has been basically utilized for the projects, which would cost 4 trillion Yuan in the coming two years. The National Development and Reform Commission estimated that these measures would impel the economic growth of 1 percentage point each year.

In addition, the investment projects of local governments to expand domestic demands are successively carried out.

Zhang Liqun, Research of the Development Research Center of the State Council (DRC), held the opinion that: in view of the evident letdown of economic growth, the Chinese government has adopted a lot of regulating policies. Although the effect of these measures needs some time to give full play, as long as these policies are continuously implemented, the China's economy in the coming year would still maintain a rapid growth.

Zhang Hanya, Researcher of the Investment Research Institute of National Development and Reform Commission, pointed out that the Chinese government's weighty and high efficient measures are not only quick response to the economic challenges at home and abroad, but concrete courses of action to strengthen international cooperation and promote world economic growth as well.

Such experts as Zhang Liqun also believe that the current economy in China is still in the rapid developing lane for urbanization and industrialization, so the economic growth is equipped with tremendous driving force and market space. As long as the above policies and measures are implemented without delay, the target of maintaining stable and fast economic growth is sure to be achieved.