Lang Xianping: Manufacturing Should Be the New Engine of Economic Development

2013-12-30 658 0人评论
      Renowned economist Lang Xianping (pictured left) stated on site that manufacturing will be the new engine of economic development. He noted that the Third Plenary Session of the 18th CPC Central Committee explicitly stated that stimulus policies will no longer be used to drive the economy, a policy that had been the engine of China's economic growth for many years. How to find a new growth engine is bound to become the topic of greatest concern to the government, enterprises, and even the general public.He pointed out that the 2008 financial tsunami made the United States the hardest-hit area. In early 2009, the U.S. economy fell into a disaster unprecedented in a century. After President Obama took office, he introduced a bill called the new engine of manufacturing. “After this statement came out, many people thought that U.S. manufacturing had no advantage at all, because manufacturing accounts for only 12% of U.S. GDP, while services account for 80%.” But the facts surprised many—data showed that over five years, U.S. manufacturing led the recovery. This year, the U.S. unemployment rate fell to a historic low of 7.2%, and the stock market rose 135% over those five years. Lang Xianping said: “This proves that manufacturing has indeed driven the U.S. economy.”

  Lang Xianping also announced his latest research findings on site: “One yuan invested in manufacturing can create 1.48 times the output value in other industries, the highest among all industries. Agriculture ranks second, creating 1.25 times the output value; construction and real estate create 0.97 times; all other service industries are below 0.9.”

  He believes Obama's approach is worth learning from: “Simply put, he did two things: first, reduce costs; second, improve efficiency. I believe that the many award-winning entrepreneurs here, especially those in manufacturing, will find these two points very reasonable. But regrettably, today we have all ignored the importance of manufacturing.” He hopes that through the efforts of the government and the general public, social resources can be reallocated, “with manufacturing as the leading sector. I believe it can continue to drive China's economy, and I hope it can become the new engine for developing China's economy.” 

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