To discuss China's social reform and development over the past several decades, Closer to China sits down with Li Peilin, a member of the standing committee of the National People's Congress and vice chairman of the Social Development Committee of the NPC. He is an expert in the study of change of social structure, development evaluation and social stratification.
The following are the highlights in Li's interview in March, 2015. The video reflects the guest's opinion, and not necessarily the views of CGTN.
What is the lesson China learns from the past experiences in economic development?
China has learned a lot from past experiences. The western part of the country will not follow the beaten path of "pollution first, treatment afterwards."
Today, China has a new opportunity in that the tertiary industry has surpassed other industries as the main driver of economic growth. People hope the western regions can avert those detours during its urbanization process.
That is why opening up serves as a crucial driving force for China. Through opening up, urbanization could be promoted with trade and infrastructure investment rather than simply relying on labor-intensive industries.
How does China deal with environmental issues during the process of development?
In recent years, food contamination, water pollution, and in particular - smog in Beijing - have raised Chinese people's awareness of environment protection.
People have come to realize this is not the way of life they wish to pursue, so China has elevated environmental issues to an unprecedented level.
It is also a problem drawing global attention. Thus, it is absolutely impossible for China to spread pollution to other parts of the world in the process of opening up.
China would like to avoid its reputation tarnished, as China is soberly aware of the consequences.
How do rural labor forces contribute to China's economic growth?
If peasant's labor time could be shifted into other industries, the service industry or industrial engineering, productivity of the entire society would be significantly enhanced.
This transition is happening pretty fast, and that's also why people think China's economic growth could maintain a relatively high speed going forward.
What is the main driving force of Chinese economy at present ?
The Chinese economy used to be mainly driven by exports and investment, especially investment. Huge investments propelled China's economy.
But today, the driving force of exports and investment is declining. Moving forward, China needs to make its domestic consumption become the main driving force like the US, Japan and Germany.
According to related analysis, among the consumption forces in society, the most significant is the middle class since they have a bigger elasticity ratio of consumption, which means if their income increases by $100, a higher proportion will be spent on consumption than that of the rich and the poor.
How can China increase the size of the middle income class?
For the rich, their consumption is basically saturated, and the poor do not have money for consumption. Thus, how does China increase the size of the middle income class?
This is a crucial task during the urbanization process. Who can be transformed into the middle income class? From other countries' experience, some are fresh college graduates, some are migrant workers.
China should encourage migrant workers to live a middle-class life with their human capital and techniques. If China can achieve this goal, the development model could be shifted and the entire consumption structure would embrace a great leap forward.
What is people's concern about the Belt and Road Initiative? How to cope with this kind of concern?
China is currently experiencing an overcapacity, for heavy industries in particular. Some worry that China would take the opportunity to shift heavily polluting and energy-intensive industries overseas.
More doubts may come from the Maritime Silk Road or the Silk Road Economic Belt. Both involve countries with different religions, languages, civilizations, and histories.
How to reach a consensus with such wide diversities? Many consider these projects to be impossible goals. Li Peilin thinks these concerns make sense.
It also means that even if a strategy is very successful, it still confronts numerous challenges and difficulties. It is not something that comes easily.
China is closely studying these problems and hope to achieve a win-win situation. If it is believed to be for the common good, countries can reach a consensus.
What is the relationship among government, enterprises and society?
Today, China no longer just considers the government-market relation, but also that of society. That is, for an enterprise to invest in a region, it not only should consider its relationship with local governments, but also its social responsibilities.
How does a company relate to local residents and local society with its business, which is based on corporate profits? Of course, investment must see returns. That is a precondition. Otherwise, it would turn into some kind of political investment.
But at the same time, the enterprise should also help improve the lives of the local residents and improve local infrastructure and the environment. Only in this way, can those projects sustain and grow soundly.
