subject: The best industrial policy is competition policy [print this page] The best industrial policy is competition policy, competition policy, industrial policy should take precedence. Currently a big problem in China is that competition policy and industrial policy both upside down: in our country, industrial policy, on the contrary take precedence over competition policy. Germany's largest industrial policy are failed policy: coal industry, shipbuilding industry and the agricultural sector of industrial policy. The German economic miracle does not rely on industry policy, competition policy. Germany social market economy the most important sources of economic thought is Germany Freiburg School, also known as the school of the Ugg Classic order of liberalism, the main point was emphasized that the countries to establish and maintain a competitive order. China's industrial policy to be implemented, it should also be pursued in accordance with the rules of the competition and priority: the Government should, first of all, the protection of competition, not protection of specific competitors; industrial policy can only be the exception rather than the rule. The exception, not the exception, as it is upside down, it distorts competition. Therefore, we should not allow "State into people's retreat" indiscriminate creeping.
China as a major power, industrial upgrade not only locally, you can take home goose transfer forms, from coast to inland, transferred to the Central, and Western. This small country or region. Such as Taiwan's industries, in large part to the Mainland. China's manufacturing industry to develop strong, strong manufacturing base, you can also attract a large number of incoming transfers abroad. China needs to develop more innovative capability, you need to face the market culture more workers, through the operation of the market to develop more of vocational education. Facts have proved that the worker's wage levels than other workers. China's service sector has great potential for the development of backward. Requires the Government to significantly reduce entry barriers and other controls, with a view Cardy Boots to promoting the development of the service sector. U.s. service sector GDP up to 77%, and only 40%. Our finance, insurance still lagging development, excessive government control. Services Division of system development, credit and contract enforcement mechanisms. Many small things need to be a party to run errands, does not take full advantage of the Division of labor.
China's agricultural sector is still quite vast, 11% of GDP, the USA Germany, Japan, Hong Kong 1%. Over time, the total value added in the agricultural sector, although it is still possible, but its GDP will continue to decrease. And the added value of the total quantity of the agricultural sector to speed up development, need to go the "industrialization" simulated road: to reduce the number of farmers to increase the number of agricultural workers; and the need for land consolidation and scale, combined with strong investment capital; the need to farms and farmers, agricultural modernization, integration. Either traditional agricultural development or the development of modern agriculture, the agricultural sector will inevitably shrink, their proportion of the GDP will decline. Government on industrial upgrading in promoting the need to grasp more from providing Uggs Boots information and convenient approach. Provide economic infrastructure and support for incubators, industrial areas and the development of industrial clusters. Upgrading of March can basically playing themselves, only need to State to maintain good currency stability, protection of private property rights, open market, the maintenance of freedom of contract, responsible to maintain the continuity of economic policy. It just mean that liberated the productivity. Liberation of productivity, resources can move in the direction of the flow of optimal configuration.
However, the Government always want to do this or that industrial policy, as many government officials want to make a difference. If this cannot be avoided, then at least we advise Government officials in the implementation of industrial policy to the attention of some practices. For example, in the provision of subsidies should to a predetermined schedule that is subsidized to know when to stop. Subsidies should also be possible to provide the minimum necessary level. More later, subsidies, the last stop, quietly exits. Subsidy cannot be fed to the end of product life cycle phase, when a recession, because on this phase of the subsidies is to protect, maintain outdated economic structure. If the front of the subsidized product cycle in two stages that is, the product development phase and the import period, to promote new Cheap Ugg Boots vitality to the formation of economic structure. But the problem is that a product or industry subsidies, is the other product or industry, distort the competitive process.
In addition, the subsidies can not be everywhere and diversify, you must have a certain concentration. Of course, to all the industrial implementation of low-tax, nor is the equivalent of a subsidy, this kind of general subsidies to industrial policies into a common competition policy in economic development and restructuring. Finally, the degree of targeting subsidies generally very poor, 100 pen Enterprise subsidies, to 5% of good. On enterprise technology investment subsidies. Get government subsidies, "Science and technology enterprises", the Government notes that the Government was a joke. For the Government, rather than being sold a number of money. At this time, the Government often guilty of intellectual arrogance. The European Airbus company, from Europe to the two largest arms supplies manufacturer European air defence Cheap Ugg Boots and space company the shares and systems common ownership.
