Thread by @ChinaFinance40

Xiao Gang says during 14th 5-Year Plan, China needs to carefully manage 5 relationships: that between inheritance & innovation, between the market & the government, between opening-up & independence, between development & safety, and between development strategies & tactics. 1/8

The Chinese government newly proposed that supply-side structural reforms should remain as the emphasis of efforts, while demand-side management also deserve due attention. 2/8

Xiao believes that to promote the new development pattern of #dualcirculation, the key is to balance the upgrade of the supply side and the expansion of consumer demands. 3/8

This year, production has recovered better than demands from covid’s blow, big businesses better than small and micro ones, and South China better than North China. 4/8

These imbalances show that insufficient #demands relative to #supplies have become an outstanding problem in China, calling for greater efforts in demand side management. 5/8

Xiao believes that China can achieve high-quality development on the strength of its domestic demands. China has a super-large #market, with immense potential demands for #investments and #spending. He calls for new mentalities when expanding domestic demands. 6/8

Before, expanding domestic demands was to make up for falling external demands; under new mentalities, demands and supplies are mutually-reinforcing. Debt-driven investment expansion needs to be changed. Existing #assets should be tapped into to boost investment efficiencies. 7/8

He also suggests to improve the quality of domestic demands while actively engaging in international competition, improve the efficiency of resource usage, and boost innovation on the supply side to cater to the changing demands. 8/8

mp.weixin.qq.com/s/rUrCFnsuPMti…