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              High-quality industrial development reliant on national governance

              Author  :  LU HANG and WANG QINGCHEN     Source  :    Chinese Social Sciences Today     2019-12-23

              XI’AN—At the 2019 Academic Annual Meeting on Industrial Economy Research in Xi’an in early December, scholars exchanged ideas under the theme of National Governance and High-quality Industrial Development.

              The shift of China's economy from a high-speed growth stage to a highquality development stage requires higher-level modernization of the national governance system and its capacity. Wang Yaoyu, vice president of Northwest University, said that high-quality development is a necessity after China’s economy moves into the “new normal.” From the perspective of the social economy, high-quality development in the new era includes two inseparable aspects: to promote growth transition and the equity of the distribution. The high-quality development of the industrial economy is the cornerstone of the high-quality development of China’s economy and also a prerequisite for building a system of modern governance adapted to the new era and new requirements and for realizing equitable distribution.

              Currently, new industries, new forms and new models are developing rapidly. There is a high necessity to utilize vigorous policies. Guo Shougang, deputy director of the Finance Department of the Ministry of Industry and Information Technology of the PRC, said that facing new domestic and international situations, the process of making financial policies around the industrial tax includes three key points. We should give full play to the market’s autonomous regulation, and we should remedy and supplement the market’s inefficiency through administrative regulation, the “visible hand.” We should also emphasize the publicness of policies, treating all companies equally. In addition, the government should pay close attention to the research and data feedback from all companies, open channels for reflections on various problems, and capitalize on all advantages so as to improve industrial high-quality development.

              In recent years, the world has been entering a development period of “new economy” led by the information industry. The new economy is manifested in high-quality development. A new round of technological revolution and industrial reform is creating historical opportunities. At the same time, huge business opportunities are contained in the new economy and new industry forms, including the digital economy, intelligent economy, shared economy and experiential economy.

              Our country is moving into the era of the service economy. Digital technology enables the service industry to show the features of economies of scale, largely enhancing its labor productivity. Bai Yongxiu, a professor from the School of Economies and Management at Northwest University, noted that the future of industrialization is combining traditional industry with the service industry, that is, “industry-service” integration. In the early integration stage of “industry plus service,” the industrial structure has shifted from the industry-oriented mode to the joint development model, where we remain today. In the later “service plus” stage, the industrial structure will shift from the joint mode to focusing on service while deeply integrating these two industries.

              Li Gang, deputy director of the China Think Tank Research and Evaluation Center at Nanjing University, said that the high-quality industrial development depends on high-quality national governance, because “economic forms and economic effects are highly reliant on national governance.” The decision on some major issues concerning how to uphold and improve the system of socialism with Chinese characteristics and advance the modernization of China’s system and capacity for governance adopted by the fourth plenary session of the 19th CPC Central Committee requires us to continue to carry forward the notable strengths of China’s state and governance systems, minimize costs caused by lack of coordination, and further liberate and develop the productive forces.

              Editor: Yu Hui

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