stock or real estate investment, instead of investing in their main business, which is not recommended. What we should encourage is tha
t companies should finance R&D and technology, which is conducive to economic development.
Cai Fang, vice president of the Chinese Academy of Social Sciences
What lies behind the economic slowdown is the disappearance of the demographic dividend, which has ca
used a decline in the potential growth rate, meaning there is no longer a gap between actual growth rat
es and potential rates. Now, the natural unemployment rate has climbed from 4 to 5 percent, indicating there is no cyc
lical unemployment at present and thus excessive strong stimulus is unnecessary.
The government should focus policymaking on public employment services like
training and appropriately use macroeconomic policy tools to regulate the economy.
Lou Jiwei, chairman of the National Council for Social Security Fund
Industrial policy played a certain role in the early economic developmen
t stage, but later, the actual role of industrial policy was not all positive. Take the auto ind
ustry as an example. The current “big three” private car manufa
cturers have basically broken the constraints of industrial policies to grow up.