Read “Being Involved: Chinese Government and Economic Development”

Original link: https://huiris.com/chinese-government-and-economic-development/

“Lending suspension, work suspension, debt crisis, fiscal and taxation, unpaid wages, increasing corporate bankruptcy, making ends meet, increasing deposits, downgrading consumption…”.

These are almost some of the words that appeared most frequently in the domestic hot news in the first half of the year. Even if I don’t take the initiative to pay attention to current affairs news, I can understand it intentionally or unintentionally: It seems that there is a problem with the operation of the whole society – the core is the economic problem .

Other more feelings come from the quality and quantity of the clients I contact at work, which are much worse than in previous years. Of course, from the point of view of life, shopping malls seem to have much less customer traffic than usual. More and more shopping malls have begun to move from indoors to outdoors. The night market + street stall economy has become the core program of almost all large shopping malls in my city. .

Inadvertently, I read this book “Being Involved: The Chinese Government and Economic Development”, combined with the current social environment, I have a general understanding of the current situation, which is caused by a series of actions in the past few decades. It has been there for a few years, but through the accelerant of the epidemic, the early and concentrated outbreak of various problems has been accelerated.

The whole book is more like a collection and arrangement of all policies and data from 1990 to the present. The author does not create much. After all, solid data is more powerful than any creation. In addition, it is not allowed to arbitrarily evaluate the government, and the creation can also be understood. The reason for the lack of content. After the end of each chapter, the recommended related books and materials are extremely rich. From the Douban list compiled by others, there are a total of 50 books and 7 film and television materials. If you want to know the detailed ins and outs of related events, you might as well read along the book list. It should be enough to read for about 2 years, and after reading it, you should be able to become a “quasi-expert” level.

A few impressive points are briefly summarized:

1. The existing tax policies are not rules designed by the central government and enforced by local governments. Initially, the central government had to negotiate with local governments one by one.

2. The government and various affiliated institutions are deeply involved in most production and distribution links in the entire society.

3. Land finance is the result of local governments seeking new sources of funds under financial pressure.

4. Housing price is related to land price, land price is related to finance, and finance is related to infrastructure construction investment. Local finance, banks and real estate have formed a highly connected chain. One is prosperous, and one is lost.

5. A large number of laborers are transferred from rural areas to cities, resulting in the inability of natural labor flow. Completed the rapid development of the city, but also completed the rapid fall of the countryside.

6. Government subsidies are one of the important conditions for the rapid development of the new energy industry in the past ten years.

7. The development of high-precision and advanced industries has greatly improved the technical capabilities and international competitiveness of basic manufacturing industries.

8. While the government subsidizes the new energy industry and high-end industries, it also encourages economies of scale. The larger the scale, the more people it covers, the wider the beneficiary group, and the cost is evenly diluted.

9. Residential land is an important source of fiscal revenue, while the cost of industrial land in most cities does not exceed 500 yuan per square meter.

10. There are risks in the financial and resource allocation mechanism. In the end, it is necessary to respect the laws of the market and make “circulation” more free. Putting people first and hiding wealth for the people may be the most effective way to combat risks.

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This article is reprinted from: https://huiris.com/chinese-government-and-economic-development/
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