Li keqiang economy "minimally invasive surgery'': activate market reform

While most people are aware of China 's economy , " illness ", but the last quite a long time , China's economic prescription has been received by delaying treatment " painkillers ." Frequent irritant policies , large investment boost China became the world's second largest economy , and also created a huge government debt and excess capacity , so that China's economy highly controversial : How many people think it is a miracle , there how many people think it's dire.

And now, Premier Li Keqiang raised the " scalpel ." However, unlike traditional open-chest surgery room belly , bloody scene is different, Li Keqiang surgery is called " minimally invasive surgery ."

Standard Chartered Bank said in a report last June , wrote : "Welcome to Dr. Li Keqiang 's theater ! " At that time , China had just experienced an impressive "money shortage ." June 20, 2013 , the Bank of China [ 0.00% funding research report] overnight lending rate suddenly skyrocketed to 13.44% of the highest point, and in the meantime, the interest rates are usually maintained at around 3%. By "money shortage" rumors , the Shanghai and Shenzhen stock market crash, the market was caught in panic , but the Government has not "rescue ."

" The new Chinese government seems more willing to endure short-term pain , which in exchange for long-term gains ." Wrote these reports , "We had doubts whether Prime Minister Lee will promote reform , but now it seems we underestimated his determination in order to implement the policy , he would be willing to greater economic downside risks . "

Event embodies so much money shortage Li Keqiang face difficulties , " anyone " , as it reflects his skill to crack China's economic predicament . Difficult to find another way than "money shortage" of commercial banks even more profound lesson , manage better understand the importance of liquidity . Li Keqiang pains a few days , so the bank has changed the rules of the game over the past several years .

For a long time , Chinese people have become accustomed to " nanny" government. They frequently "rescue" of what happened in the field of price fluctuations subsidies - including pork , grain, and even garlic and ginger , and the pace of the market is always a beat faster than the government . Li decided to give himself another role. He claimed that as long as China 's economic growth did not affect the employment of a breakthrough , " limit " , the inflation rate does not exceed the " cap " , the government would not intervene in the market introduction of large-scale stimulus , but " focus on adjusting structure, promoting reform , and promote economic transformation and upgrading . " ( Related reading : Li Keqiang : strong short-term stimulus will not be issued )

Abandoned the " painkillers " , Li Keqiang 's "minimally invasive surgery program " is the reform . March 2013 , he became prime minister on the day of the reporter conference promised to " straighten out the government and the market , the relationship between society and the" cancel more than 500 decentralized administrative approval five years. A year later , he gave reporters quoted transcript is 416 - the equivalent of one year to complete four years of work. The same period in advance of his reform project also includes amendments approved by the government investment in the project directory , and promote industrial and commercial registration system reform , expand the " Camp changed to increase ," the pilot and so on. ( Related reading : Li Keqiang : Cancellation and decentralization of a number of administrative approval )

Surgery hurt? If you continue to take short-term stimulus measures , expanding the deficit , super-currency , the Chinese economy is clearly there could be more impressive growth rate. But Li has identified decline in economic growth is acceptable . Last September, he was the first time " in the high-growth " concept in Dalian Summer Davos Forum 's opening ceremony, this is clearly revealing the carefully chosen phrases , once dedicated to " protect eight ," the Chinese government for economic growth With a more rational understanding , compared to dazzling digital , and they care more about the quality and efficiency of economic growth . ( Related reading : Li Keqiang made ​​to maintain economic growth in three ideas )

In fact , the real feel surgical pain may be government officials . And SOE reform is different than ten years ago , Li Keqiang, minimally invasive surgical knife point to the ever-growing power of government . He constantly stressed on several occasions , the government managed to do too much. He publicly promised to use self- determination ton output capacity of revolution, " the wrong hands mounted on the Government changed the market 's hand ."

As he expected, "minimally invasive surgery " to stimulate the vitality of the market. Statistics show that in 2013 , China newly registered enterprises increased by 27.6% , of which 30% of new private enterprises , private investment proportion rose to 63%.

More importantly, the "minimally invasive surgery " after the Chinese economy has structural improvements. Li Keqiang in this year's "Government Work Report" , said: " ...... the proportion of value added services reached 46.1% , for the first time exceeded the proportion of secondary industry GDP Midwest continued to improve , enhance coordination of regional development . ."

People certainly do not think the problem is China 's economy has been on this radical , but fortunately Li Keqiang 's "minimally invasive surgery " is still continuing. He announced that this year should " be canceled and decentralization of administrative examination and approval more than 200 ." State Council executive meeting on April 2 , Li decided to expand the small and micro enterprise income tax preferential scope , because " small and micro enterprises is to promote entrepreneurship and preserving employment , active force in the market ."

April 10 , Li Keqiang keynote speech at the Boao Forum for Asia Annual Conference 2014 presented in the opening ceremony of the Chinese economy to " the reform should be dynamic ." "The market is in tremendous vitality , the people bears endless creativity ." He said, " We will continue to increase decentralization efforts to create a list of government power system and explore the implementation of negative list management model ."