Priorities for development of the Chinese economy

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Priorities for development of the Chinese economy

Karelina Е.А.,

Candidate of Economic Sciences, Associate Professor at the Department of Foreign Languages Moscow State Technological University «STANKIN» Russia, Moscow

Kirova I.V.,

Associate Professor at the Department «Economic Theories» Moscow Automobile and Road State Technical University (MADI) Russia, Moscow

Abstract

The article analyzes the main prospective plans for the development of the Chinese economy. The sources and measures taken for intensive economic development have been investigated.

Key words: Chinese economy, strategic objectives, inflation management.

In the 21st century, China continues to implement economic reforms that began in the last century. As noted in the documents of the 16th Congress of the CPC, the PRC had successfully met the objectives of the first and second phase of the "three steps" - "to warm and feed" its people and ensure an increase in their living standards. The third phase has begun, the goal of which is to reach the level of economically developed countries.

By 2050, China plans to achieve the following strategic goals: a comprehensive socialist modernization, which is necessary to achieve the maturity of social and economic development; a significant increase in the country's international status while ranking first in the world in terms of total state power; joining the ranks of countries with average GNI per capita; creation of a wealthy and happy life for the people, and turning the country into a powerful state with a high level of material, legal and spiritual civilization [1].

Currently, China is showing stable development and movement in the planned direction, but not all experts agree with the optimistic forecasts of socio-economic development of the country. Despite its rather impressive economic power, China continues to be a rather poor state in certain terms. For example, in 2009, the GDP at PPP per capita was $6,500, which corresponded to the 127th place in the world ranking [2]. The major changes in China's economy had been established long before the beginning of the 21st century, and their implementation is the fundamental basis for the country's macroeconomic growth [3]. The structural changes in the economy that occurred in the 20th century are contributing to the rapid development of the economy today [4].

Let us focus on some of China's goals and objectives for the near future [5]. Strengthening and improving macro-control and macro-regulation measures to ensure stable and healthy economic development is a priority task [6].

In 2011, the Chinese government deliberately took active and reliable measures to strike a balance between ensuring relatively rapid economic growth, optimizing the economic structure and managing inflation expectations. Inflat ion control is at the top of the government's macro-control and macro-regulation agenda [7].

According to former Premier of the State Council of China Wen Jiabao, inflation is actually international, but, on the other hand, there is structural inflation in China, caused by rising labor costs and rising prices of primary processing products.

Accordingly, to properly manage inflationary expectations, it is necessary to do the following: firstly, to develop production, especially agricultural production, secondly, to streamline the field of circulation, especially the circulation of agricultural products, and finally, it is highly advisable to use economic and legal levers to increase control over the market. Active development of partnership with Russia contributes to leveling the impact of inflationary processes [8]. The next, no less important task is to accelerate the process of strategic restructuring of the economic structure of the country in order to improve the coordination and competitiveness of the national economy. The PRC believes that measures should be taken to optimize the demand structure, investment and industry structure; energy conservation and emission reduction measures should also be strengthened, as well as climate change has to be tackled and, vice versa, the development of a green economy should be encouraged; urbanization should be actively and appropriately promoted.

Undoubtedly, all of the abovementioned aspects are important for the stable development of the country's economy. For example, optimizing the sectoral structure means achieving a kind of rational identity between sectors of the economy, since industry has a very large share of the Chinese economy, while in developed economies the service sector is dominant.

As for environmental protection measures, this aspect is currently of enormous importance to China, since some regions are already on the brink of ecological disaster due to the unsustainable use of resources and lack of measures related to environmental protection.

China's leadership attaches equal importance to both exports and imports, as well as to attracting foreign investment and carrying out Chinese investment in foreign economies [9].

The development of bilateral economic relations between Russia and China has been greatly facilitated by the sanctions imposed by Western Europe and the U.S. [10].

Another strategic goal of the Chinese economy can be called the possibility of entering and ensuring competitiveness in the markets of complex industries - aviation, machine tools, pharmaceuticals, or the military-industrial complex, where China is either not represented at all or is poorly represented. For example, Indian pharmaceutical companies have a fairly impressive share of the international market, while Chinese companies are little known.

In particular, in these areas China is developing cooperation with Russia. Now, due to the COVID-19 pandemic, research in biochemical technology, virology and medicine has entered a new stage.

China is increasingly buying up foreign technology companies, and so far this has been happening rather spontaneously, so it is difficult to predict the outcome of such an expansion. But we should not rule out the possibility of the emergence of an innovation culture in China in the long term. One of China's goals is to show the West that its presence in the market is not limited to just buying up companies and taking factories out of Europe and cutting jobs.

Previously, as a rule, in its economic relations with Russia, China used to focus on the development of its presence in the border areas [11]. This logically follows from the peculiarities of Chinese economic development in the 20th century. development chinese economy

As noted above, it is now a question of comprehensive cooperation, both in the development and creation of advanced technologies and in the joint implementation of global economic projects.

Buying European companies (there are fewer political obstacles compared to the U.S.) is becoming a priority for Chinese businesses, as it is one of the most effective ways to gain access to advanced European technology, experience in managing complex businesses and, finally, to markets for high-tech products.

Of course, the active focus on Western European and U.S. markets has not had the best effect on the development of bilateral relations with Russia.

The analysis shows that despite the objective factors constraining China's economic development, China is successfully expanding its economic influence in the world market, while developing its economy domestically by formulating and implementing strategic goals and objectives.

References

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