The annual session of NPC and CPPCC is going on in Beijing, at which some members are alumni of School of Economics, PKU.

 

Li Yining: support the housing market

Professor Li Yining, a CPPCC Member and famous economist, said that the construction industry effect of real estate cannot be underestimated. He considered the real estate industry as a big pulling power, which not only can solve the housing care of civilians but also boost consumption.

 

Professor Li summarized five reasons for the current economic downward pressure. The first is industry overcapacity which is caused by the poor quality growth of the previous stage. The second is that the bigger the base, the slower the growth. The third is that export is suffering the unsatisfactory world economic situation. The forth is the economic restructuring will not be so smoothly and we should have enough patience to adapt it. The last one is the effect of technology innovation in stimulating economic growth need a long time to work. To solve these problems well, he added, we must deepen the reform, have faith and create market demand.

 

Economic readjustment and technical innovation will support the economy in the long run, he said, but not quickly. Without the driving force of the Real Estate in the middle or short term, it is not enough to cope with the economic downward pressure depend on economic readjustment and technical innovation alone.

 

(Li Yining, SEPKU alumnus, famous economist; Dean, Division of Social Sciences, Peking University; Honorary President of Guanghua School of Management, Peking University; Doctoral Supervisor)

 

Lin Yifu: It is potential and possible to realize two “medium-to-high” under new normal

Professor Lin said the Central Economic Working Conference illustrates the features of China`s economic development in the current stage dialectically and grasps the new normal of economic growth accurately , so it is possible and potential to maintain a medium-to-high speed of growth and achieve a medium-to-high level of development.

 

Lin analyzed that domestic demand still has great potential now although external demand has a great deal of uncertainty. Domestic demand includes both investment and consumption. At present, we still have a number of effective investment opportunities. The real dynamic mechanism of economic growth is the rising of labor productivity, which depends on continuous technological innovation, industry escalating and improving infrastructure, all based on effective investment that can improve efficiency and quality.

 

He also noticed the inadequacies with the nation`s infrastructure. Besides, China is still in the process of urbanization, which has to increase investment in infrastructure and municipal construction investment.

 

Lin considered that we also have advantages over developed countries on industrial upgrading, technological innovation. As long as we make good use of these advantages, we will be able to make economic growth potential a better play.

 

(LIN Yifu, SEPKU alumnus, leading Chinese economist, former Chief Economist and Senior Vice President of the World Bank, honorary president of the National School of Development of Peking University)

 

Xia Baolong’s views on government work report

Under the leadership of the Central Committee of the Communist Party of China with Comrade Xi Jinping as General Secretary, the comprehensively deepening reform and opening up put forward by the third Plenary Session of the 18th CPC Central Committee, and the rule by law laid out by the forth Plenary Session of the 18th CPC Central Committee, builds a moderately prosperous society, deepening reform, governing the country according to law, and enforcing strict party discipline. We identify with the work of the past summarized by government work report. In the past year, we vigorously promoted the implementation of the central policy decisions, promoted economic and social development of Zhejiang to a new step. Zhejiang will keep punching according to the requirements of the government work report, and make due contributions to the overall situation of reform and development.

(Xia Baolong, SEPKU alumnus, member of the 18th Central Committee, Secretary of the CPC Zhejiang Provincial Committee, chairman of the Standing Committee of Zhejiang Provincial People`s Congress)

 

Yigang: keep the RMB exchange rate basically stable

Yi Gang, the CPPCC member and head of the State Administration of Foreign Exchange, said the RMB exchange rate can keep basic stability benefiting from its strong currency movements recent years. Yi considered a country’s exchange rate as a barometer of comprehensive economic and financial situation. The RMB real effective exchange rate and the nominal effective exchange rate is stronger when compared with the Euro, the Yen and a basket o currencies in the world. If it is said that US Dollar is the world`s strongest currency, then the RMB is the second.

 

He concluded three reasons to support his views. Firstly, China`s economic growth prospects are still looking good. Although the economic growth declines, it is still relatively fast in the world landscape. Secondly, China still has current-account surpluses, which is important for the stability of foreign exchange market fundamentals. Thirdly, with the acceleration of the RMB internationalization, the world has certain requirements of RMB.

 

Seen from economic growth rate, international balance of payments as well as the degree of RMB internationalization, RMB exchange rate is maintaining at a reasonable and balanced level.

 

(Yi Gang, SEPKU alumnus, Deputy-Director of the Office of the Central Leading Group on Financial and Economic Affairs, Deputy Governor of the People’s Bank of China, Director of State Administration of Foreign Exchange)