In the evening of 2nd November, Li Daokui, Freeman Chair Professor and Director of Centre for China in the World Economy of Tsinghua’s School of Economics and Management, gave a speech at the Humanitas Tsinghua Forum. This economic expert, who believes that “the most active, the most concentrated, and the most global-concerned social and economic changes happen in China”, shared his views on China’s economy.
Report of the 19th National Congress of CPC states that, “As socialism with Chinese characteristics has entered a new era, the principal contradiction facing Chinese society has evolved. What we now face is the contradiction between unbalanced, inadequate development and the people’s ever-growing needs for a better life.” Entering a new era, China’s economy presents new features and new challenges.
Li Daokui believes that, the primary feature of China’s economy is the solid strength coming with super-large scale real economy and huge amounts of products, but surplus savings in turn brings management challenges. The reverse of relative factor cost is another feature of China’s economy. Nowadays, the labor force is no longer cheap, labor price is on a rise; capital and fund are relatively abundant, technology is more available, and there are no more shortages of capital. In addition, the national demand appears to be increasingly high-end and diversified, indicating that, just as the Report states, people are pursuing a better life.
The Report depicts a promising blueprint for the development of China’s economy. Prof. Li Daokui has vividly interpreted that with economic data: “In 2020, China’s per capita income will reach 10,000 dollars, very close to the threshold of high-income countries defined by the world bank. The Chinese are proud to say that we have not dragged the global economy on average.”
In another regard, what can be achieved by 2020 are not only the raise of income, but also more importantly, the eradication of poverty. Rural areas that poor and limited in living conditions, will be transformed to modern well-off countryside.
Li Daokui also described other two time points in economic way - by 2035, China will be a member of high-income countries and rank in the top 30 among large counties; the per capita GDP will reach 50 percent of that of the United States, equivalent to that of Spain. By 2050, China will rank in the top 30 among large countries; the per capita GDP will reach 70 percent of that of the United States, equivalent to that of France.
Looking forward to this blueprint, Li Daokui also put forward the new challenges facing China’s economy. He stressed that we should not only talk about China's economic story, but also China’s theories, “Our intention is to run Chinese education well, our intention is to introduce and carry forward modern Chinese science, including social sciences and humanities. Our mission is to give impetus to China’s social science, including the innovation of economic theories. This is our original intention, and this is Tsinghua University’s mission!”
Humanitas Tsinghua Forum is an innovative communication event held by Tsinghua University, aiming to empower the construction of a more innovative, internationalized, and humanity-oriented Tsinghua. The forum regularly invites excellent humanists to give public speeches at the renowned New Tsinghua Auditorium, sharing their classical theories, unique thinking and major discoveries.