Yu Yunhui: The three red lines that China s economic reform must not break!

Mondo Finance Updated on 2024-03-06

China's economic reform must have a sense of red lines!

What is the safety red line for economic reform?

No reform can jeopardize financial, economic, social and national security. This is the red line or high line of reform. If there is no red line awareness and security awareness of reform, then reform may lead to China's economic and financial system hitting a depth bomb, leading to social unrest, endangering *** At this stage, the reform of China's economic field must draw three red lines: that is, in the field of agriculture, we must adhere to the red line of rural collective ownership of land will not be destroyed; In the industrial field, it is necessary to adhere to the red line that state-owned capital will not be weakened; In the financial sector, it is necessary to stick to the red line of continuing to exercise strict control over the capital account and loan interest rates.

Clause.

1. Red Lines on Rural Agricultural Reform.

The "de-organization" reform in rural China is the root cause of the "three rural" problems. China's agriculture, peasants, and rural areas must be reorganized and develop a "rural organized market economy." It is impossible for China to choose domestic urban industrial and commercial capital and foreign multinational capital to act as the organizers of China's agriculture and the managers of rural areas. If domestic and foreign capital is encouraged to go to the countryside and the collective ownership of rural land is changed to private capital ownership and overseas capital ownership, then the natural nature of capital in chasing profits and even excess profits will inevitably lead to poverty among peasants and an increase in the cost of living for urban residents, which will shake the foundation of China's economic and social stability. The confirmation of rural land rights should not be confirmed to individual farmers, but to rural collectives. Land rights confirmation should be aimed at protecting the interests of farmers, not at protecting the interests of rent-collectors and enclosures who do not work for nothing. The abandoned land should be recovered by the rural collective organizations and transferred to the farmers without compensation, instead of the land contract being transferred to the farmers and collecting rent. Now, many reforms in land rights confirmation and land circulation are turning the collective ownership of land in rural China into a nominal or non-existent system, and China's agriculture and rural areas are sliding further to the edge of the precipice of crisis. It is important to recognize that China's rural reform has touched a red line. The correct path of rural reform should be to continuously improve and strengthen the collective ownership of rural land and other means of production, and on this basis, reorganize the peasants, agriculture, and rural areas to develop an "organized market economy in the rural areas."

Clause.

2. Red Lines for Urban Economic Reform.

In the field of urban economy, it is necessary to prevent the red line of reform from being touched in the name of developing the so-called "mixed ownership system" and to prevent weakening the scale, status, and role of the state-owned economy. Theoretically, "mixed ownership" is a vague and redundant concept. "Mixed ownership", as a new economic concept, does not answer: is the main body or leader of "mixed ownership enterprises" domestic or foreign, state-owned or private? Is this "mix" a "mixture" of foreign capital and private capital participating in state-owned assets or a "mixture" of state-owned assets actively participating in foreign capital and private capital? Is there any essential difference between "mixed ownership" and "limited liability" and "joint-stock company"? If a new economic concept cannot clearly answer the above questions, does not know what to do, and at the same time duplicates existing concepts, then the proposers of this new concept are either not theoretically accomplished enough or have ulterior motives. Here, we must be vigilant against the "mixed ownership system" turning into a "fishing system in mixed waters," which will further weaken the scale and leading role of the state-owned economy. From the mid-nineties of the last century to 2005, a group of people known as "knowledge" in the economic theory circle created the fashionable concept of "modern enterprise system" and became the first policy, so that the equity of financial enterprises was divided and looted by foreign capital, and the direct loss was trillions. It can be said that the lesson is profound. Now those who believe in market fundamentalism have concocted a new concept of "mixed ownership", which is undoubtedly aimed at encroaching on the last position of China's state-owned economy (such as China's railways, petrochemicals, power grids, military industry, etc.) and dismantling the foundation of China's economic and social system step by step. A high degree of vigilance is necessary here. The monopoly profits of state-owned enterprises have the nature of state taxation, and the transfer of equity in state-owned monopolies means that foreign and private capital participate in taxation, which will exacerbate social inequality and instability. Promoting China's new industrialization, developing a "socialist organized market economy", and enhancing the overall competitiveness of China's economy are inseparable from the state-owned economy and state capital. In the historical process of China's industrialization and national defense modernization, foreign capital cannot be relied on, private capital is unreliable, and it can only rely on state-owned assets and local state-owned assets, and can only rely on state-owned enterprises and state-owned holding companies at all levels to continue to play an important role in leading industrial upgrading, leading scientific and technological progress, and promoting economic development. From "two bombs and one satellite" to nuclear power, high-speed rail, and Beidou, which great progress has been brought about by domestic private capital or overseas capital? In the past, China's tremendous progress in productive forces relied on state capital, and in the future it will still need to rely on state capital. The so-called "mixed ownership" system must not weaken the state-owned economy, and the dominance of China's economy must not fall into the hands of overseas transnational capital, domestic comprador capital, and private capital. This is the red line of reform. On the contrary, the state capital should take the initiative to deploy and participate in or even hold shares of private enterprises and foreign capital in the fields of scientific and technological innovation, agriculture, agriculture and rural areas, and circulation. National capital should play the vanguard role of guiding investment, leading investment, and promoting industrial upgrading. The reform idea of the ownership system of the whole people and the state capital management system is: on the basis of the appropriate separation of ownership and management rights, the capital management and management rights should be authorized in a market-oriented manner, and the existing administrative authorization methods should be changed through the establishment of specialized asset management companies, so that the enterprises dominated by state-owned capital can adapt to market changes more quickly, become more dynamic in the market, and better complete the organization and orderliness of the market.

Clause.

Third, in the financial sector, it is necessary to adhere to the red lines of capital account control and interest rate control.

Capital account liberalization, the free convertibility of the renminbi, and the free entry and exit of US dollars in and out of China are the biggest demands of international capital at present. This demand for international capital has been cleverly packaged as the following beautiful lie: capital account liberalization is conducive to improving the efficiency of resource allocation, to the internationalization of the renminbi, to the implementation of the "going out" strategy by domestic enterprises, to opening up to the outside world, and to ......It seems that capital-account liberalization can quickly turn China into the United States, the renminbi into dollars, and China can buy energy and raw materials abroad just by printing the renminbi. These lies conceal the true purpose of international capital to loot China's wealth.

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