The 10th Five-Year Plan for National Economic and Social Development
(2001-05), which will be instituted this year, marks the beginning
of a new round of strategically important economic restructuring.
This is among the
hot topics of discussion among members of the National Committee
of the Chinese People's Political Consultative Conference
(CPPCC) attending the current session of China's top advisory
body.
According to the
new five-year plan, China will readjust the structure of its
agriculture and rural economy, continue to make progress in
the IT industry, develop the service sector, give priority
to high-tech industries, accelerate the pace of urbanization,
and launch the strategy of developing the less-developed western
region in an all-round manner.
"China's economy
has reached such a stage that it will not make any further
progress without readjustments," said Xiao Zhuoji, a
law professor from Peking University.
The existing industrial
structure, which was shaped to serve the planned economy,
is irrational and hampers the country's modernization drive
and its involvement in economic globalization, Xiao said.
He called for greater efforts to develop the service, high-tech,
banking and IT sectors.
After two decades
of reform, great changes have taken place in China. Gone are
the days when Chinese suffered from a dearth of commodities.
China is changing with the whole world amidst sweeping technological
revolution, structural readjustments and economic globalization.
Economist Dong
Fureng spoke highly of the readjustments put forward by the
new five-year plan. "It is not 'adaptability' restructuring
in a general sense, as in the past," he noted. "It
is a new round of restructuring that is motivated by the new
technological revolution, which will have a significant bearing
on the whole economic situation and long-term development.
It is not local. It is an all-around restructuring covering
the industrial structure, regional structure and town-and-country
structure," he stressed.
Lin Yifu, director
of the China Economic Research Center of Peking University,
said the possibility of changes in the economic structure
of a country depends on the speed of technological progress.
The technology factor is crucial to China's industrial restructuring,
Lin stressed.
The new five-year
plan makes the expansion of domestic demand a "long-term"
principle of strategic importance. The intrinsic logic is
that expanding domestic demand would provide greater room
for maneuver and strengthen resistance against international
economic risks in the complicated and capricious international
environment, said observers.
The adjustment
of regional and town-and-country structures is essential for
stimulating domestic demand, said Professor Lin Yifu. The
western China development drive that started last year should
accelerate urbanization there and in eastern and middle regions.
Professor Xiao
Zhuoji said structural adjustment should be left to market
forces to make enterprises more active, more competitive and
more capable of innovation. In the past, he said, structural
adjustment used to be done by the government through administrative
means, thus resulting in "forced marriage," "ownership
discrimination" and "violation of economic principles."
More often than not, such structural adjustments were resisted
by localities out of protectionism, he noted.
Zhou Shulian, a
researcher from the Institute of Industrial Economics of the
Chinese Academy of Social Sciences, called for the setting
up of a mechanism that can ensure effective raising, rational
distribution and efficient use of financial, human and technical
resources in the optimization and upgrading of structure.
Wang Mengkui, director
of the Development Research Center of the State Council, believes
structural adjustment is not just a matter of a few years.
Developing high and new technology industries and transforming
traditional ones will run throughout the whole modernization
process.
It will take half
a century or even longer before the movement of the rural
population into non-agricultural activities is realized, and
to really develop the western part of the country.
"The official
launching of this new round of strategic restructuring marks
a new stage of development for China's economy," the
economist said.
(Xinhua 03/09/2001)
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