According to CF40 Nonresident Senior Fellow and former CSRC Chairman Xiao Gang, China will face three major changes in its domestic and international environment that have important implications for its economic and financial development during the 14th Five-Year Plan. 1/7
1. Its demographic dividend and the advantage of low labor cost are diminishing;
2. It no longer enjoys the “latecomer’s advantage”;
3. Its relatively favorable external environment is undergoing profound changes. 2/7
2. It no longer enjoys the “latecomer’s advantage”;
3. Its relatively favorable external environment is undergoing profound changes. 2/7
Against this backdrop, Xiao says it’s imperative that China explores and unleashes the new advantage of its super-large market. He proposes several policy suggestions to this end. 3/7
1. Intensify investments in human capital, increase the proportion of high-skilled professionals, and accelerate to foster a pension system that accommodates China’s socio-economic conditions;
2. Expand the middle-income group and boost the domestic consumer market; 4/7
2. Expand the middle-income group and boost the domestic consumer market; 4/7
3. Build a long-term mechanism to support the development of private businesses;
4. Make China’s financial system more compatible and coordinated with its pursuit of high-quality economic development; 5/7
4. Make China’s financial system more compatible and coordinated with its pursuit of high-quality economic development; 5/7
5. Step up reform of real estate finance for the sound long-term development of the real estate sector;
6. Promote financial openness at a higher level, seek win-win cooperation with other countries to cope with the increasingly complex, challenging international environment; 6/7
6. Promote financial openness at a higher level, seek win-win cooperation with other countries to cope with the increasingly complex, challenging international environment; 6/7
7. Maintain financial stability and guard the bottom line of preventing against systematic risks. 7/7
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