Exploring new spaces for private economic development text record _ a basket of mind

Moderator: thank you earlier guests talk about reform, a lot when it comes to the Sun financial topic, last year during the two sessions, we have been concerned about Sun financial problems, exactly how many, how much open, I do not have an answer, I believe the Sun financial problems in the future we will continue to focus on, continue to advance. Following the Beijing Institute of Economics (blogging area), Executive Director of Mao yushi (blog). Mao yushi: we are here to talk about issues on the development of the private economy, I would like to discuss our first review the reform and opening up 30 private economy of change in China, at the start of the reform, China is still a planned economy countries, that time is not the private economy, cost is absolutely 0% the private economy, at that time to destroy capitalism in the bud, once the restoration of capitalism to millions of people landing, not capitalism but the seeds will destroy it, is what Bud is small production, capitalists make money money. A spontaneous desire to want to make money, an old lady in the countryside and chickens, eggs sold to people this is very dangerous, completely wipe the spontaneous forces, when Chinese people are employees of the Government, the Government is the only boss. General country farmers free producers, but in the case of China, farmers go to the communes, are working for the State. In this case there is no private economy, Barber's shop is a national, food is a national, all large and small shops are State-run. When this situation changes, that is, Xiaogang village 18 rural, economic freedom and they come out of commune system inside out, and responses to such a request will soon get a lot of countryside, when Deng Xiaoping's right, it turned out that a set of restrictions to peel it off, accept a spontaneous and rural market fairs, at that time for each household, of their own products. Is a chicken and egg, a pig to the market to sell, otherwise everything is a national, now have a fair chance, and the first private enterprise, freedom of the market fairs, this freedom was soon extended to the industrial and commercial aspects. At that time one of the most common free is to travel around trading on one's own, there are a lot of people selling travel around trading on one's own transport garments from the South to the North, so travel around trading on one's own industry a very hot, the train, on the shelves full of luggage, is different from now now on shelves by train there was nothing, at the time of the train is important shipments, but for this Act is not authorized, travel around trading on one's own make a lot of money, does not work how do you earn so much money, you are exploitation, so there are under the State Council, there is a law is to travel around trading on one's own is illegal. If you travel around trading on one's own long-distance transport from Guangzhou to the North, a lot of money to make money will go to prison, also allegedly shot. That's why we at the start of the reform, on the attitude of the private economy. At that time still think it's basically private economy led to capitalism, it is worth to be wary of things, up to 88 of constitutional amendment, allowing private business economy within the scope of the legal scope, 1988 Constitution allowed on the private economy exist in the Constitution, must be within the scope of legal provisions, scope of this provision is very variable, but also to any organization and individual social and economic order, destruction of national economic plan, this is a very vague, and disorderly, and destruction plans, private economy is at stake, there is no guarantee. After five years, in 1993, the revision of the Constitution once again, determine the direction of a market economy in China, we no longer engage in the planned economy, 93, amending the Constitution had a significant impact, but still didn't let go of the private economy, up to 99 Constitution recognizes private economy is an important part of the Socialist market economy, is 99, that is 11 years ago, just inside the Constitution Help Desk Tracking Softwareofficially recognized private economy is an important part of the Socialist market economy. In this four times in the process of revising the Constitution, there's a lot of private entrepreneurs, at that time still no entrepreneur, is the small property owners, self-employed, punished by the State. In this case the private economic development is very reluctantly. At the time the tax authorities, the business and management, private sector of the economy is holding a hot attitude. Private sector of the economy, 80% to hand out to make money, you have to sign up for a business is hard, registered a year would not have survived. And the tax authorities have very strict requirements for private economic cost. This unreasonable demand is maintained until recently, the private sector of the economy does not need more than a certain level of wages, this is a joke, how can enterprises pay tube got me how much, and private sector of the economy has to do, the Department must manage, tubes basically took the State economy means the private economy, the State economy tube pay some truth, because the State economy is a national asset. Pipe private sector of the economy Department with the same theory, private sector wages cannot exceed a certain limit and this limit is very low, so in fact pay more than you counted towards the costs of this part is not, finally becomes your profit. So in this case, makes private capital development is very difficult, and they had to do false accounting, you unreasonable, I have no way to deal with you, I was cooking the books, this situation becomes a game of cat and mouse. Until now, today, under article 175 of the criminal law to require individuals or units of government lending funds arbitrage is an offence to jail, what is the Government lending funds from a financial institution lend someone money changes hands, arbitrage, borrow low interest rates, lending the high interest rates, lending hedge to break the law. We know the financial industry is what we do, how to create wealth is to increase the value of money, different people have different value money, the financial industry in large-value, high value, and productive place. Money value expressed as interest on it, the financial sector work is low interest money off the high interest in the profits, but our financial industry without this ability, we save money for 2% interest, there is no ability to go where the money to interest rates, 20%. Time for someone to do this, increase the value, create wealth, but we have laws say you break, go to jail. I very much because it imprisoned people cry out about one ' s grievances, like reforming government prohibited speculation in the early days, long-haul traffic, most long distance is exportedTo the United States, from the United States imports to China, the long-haul traffic is speculation, a lot of thought, has its theoretical basis, the rationale was that only the labor theory of value creation, you turn to transfer the money to have no value, turn to transfer the goods have no value, value of domestic goods from here to there is no increase in value depends on how much labor after production, this thing has solidified in the goods, the goods in the United States, China, in the North, the South is the same, the mistake concepts have guided our minds even now. Until now we have the protection of private property, although there are a lot of progress, but different from the protection of the State-owned property is State-owned property is sacred and inviolable, only the legal protection of private property. We compare the inviolability of State-owned property, whether legal or not legal, we say State property has illegal, there may be, with strong hand from people inside get things into the public domain, and that legitimate is not legitimate, I think it is not legal, but the State-owned property is sacred and inviolable, and private property legal protection, legal protection does not protect you is illegal, lawsuit hit a first look at the source is not valid, this can be protected. Because so many rich people we felt safe enough in China property, so have taken place in recent years a large number of wealthy immigrants at the beginning of the emigration of many people to think of ways to work in developed countries, the same work to earn more wages, now can not, now is a lot of wealthy immigrants, migrants because of insufficient domestic property, he wanted to move to a place with better asset protection. Now the privatization of State-owned enterprises, with situations over the past 30 years we've gone through, there is a very big difference, why would we state property privatization, mainly because of State-owned assets after the market, most of the losses, where the money, the Government took the money, the Government cannot afford the loss of large amounts of total assets, there is no way, dissolve to sell it, into a private enterprise, but today the situation is totally different, State-owned enterprises now make a lot of money, the State-owned enterprises had more money than private enterprise, it is very much like the State-owned enterprises, unlike hate them in the past, and now they make a lot of money, profit trillions of State-owned assets. Government to them very much, reluctant to let go, but the State-owned enterprises is what good does it do for people. It can be said that there is no good, State-owned enterprises should be distributed to people to make money, through to people who turn in the Ministry of finance national public expenditure, but in fact, they turn in 5% is very low, a number of different States, high 10%, began to rise to the 15%,85% to stay inside the enterprise of the year, we are here for everyone who are State-owned enterprise bosses, however, we make money out of reach, only 15% get 85% out of the reach, then why do we have to State-owned enterprises, the Government very much, but people don't support. We could make them turn in a little more, no, because the earliest State-owned enterprises ' profit 100% handed, which is very reasonable, a hundred percent enthusiasm handed enterprises do not have to make money, so enterprises don't want to make money, after my money over to you, why do I phone, I first took, to expand the cost and turn profits. So changed that simply did not turn in, all your flowers, with enthusiasm for making money, but with enthusiasm for making money does not turn in, which will see the contradiction between State-owned enterprises. You say he can make money, he could not turn, he's your hand he will not make money. What should I do? take him no way. So Marx discovered private capital is the cause of social injustice, he wants to be very true, therefore the proletariat to capital class, but not into public ownership problems more in the future. And after the restructuring is still wrong with big, SSO also don't, not hand no, a dilemma, when several scholars speak, spoke about the State-owned enterprises accounted for a high proportion of countries, their economic growth to the benefit of the people is relatively small, different GDP growth to the benefit of private citizens, we are now very high economic growth, income growth is not so high but people. So, to this situation, we again back at the relationship between private and State-owned economy, I'm afraid we go back and look at the 30 years of changes, should also look at the situation in various countries around the world around them. In theory can also prove that public ownership is difficult to control and make better. Unless there is an isolated island in the ocean private-public, this theory can be proved, and it is in this way, internationally, there are a number of public-owned enterprises is very good. But on one condition, he must be in the private ownership of drowning a few isolated islands, for whatever reason, because of public ownership is not a reasonable price, only the ocean private ownership could produce at reasonable prices, a public ownership society, no price rivalry enterprise of high value to make money, make money or not to give people, prices low loss, low prices benefit ordinary people and low price is good, so full of public ownership society, price does not work, whether it is before the reforms of the Soviet Union, was such that price level doesn't matter, the price is the role of accounting, is not the role of resource allocation. Such a society is, of course, inefficient, but if your private Ocean they decided to have a price, and then there are a few isolated-public operation, using private environment created by the price signal, he was able to effectively operate. Now we are faced with a series of major adjustments of private economy in the middle of this adjustment should find their own opportunities. Includes several experts say China's structural adjustment, excessive reliance on investment and exports, our environmental damage, asset bubble problems with structure, structural adjustment and private economy will find opportunity, I feel that we must start with the price of structural adjustment, price decided to act as a sign, fixed prices, economic structure is there is no way to move. We are energy saving and emission reduction, energy prices is not impossible and energy saving, energy-saving forced out by administrative means forcing many faults. Energy price rises not let companies lose money and energy saving, why don't businesses can, energy prices natural energy saving enterprise, therefore, must start with the price adjustment, structural adjustment must be adjusted prices. The price includes the RMB exchange rate, including many of the taxes. Resources tax, our extensiveJI, rely on spell resources, striving for environmental, environmental costs to increase resource prices would also like to mention, raising interest rates to ease the foam of the bubble economy, in particular, to open financial markets, so that we can turn over the structure. This adjustment in the US there are many new opportunities for the private economy, GDP growth in the US, often do not take into account employment, taking into account investment-led growth of GDP,GDP is a great investment, large projects, Metro, nuclear power plants and dams. These items very little absorption of employment, a subway billions of, how many jobs, so thousands of people, only thousands of billions of people in employment, a nuclear power plant are also billions of billions, large reservoirs are also billions of nuclear power station is automated, however there are very few people, since few people have repaired a reservoir, is very limited contribution to employment, so structure is to develop the services sector, service sector investment is small, but employment is very large. China in the service industry with international comparisons, we were the worst, 10% GDP growth, employment increased, 1%. Brazil it job growth with GDP growth is the same, of course, he's less GDP growth, but he also growth of employment. So reduce the export, then reduce the investment of large projects, employment at this time, we look at the shop on the Web 20 years ago, there's a lot of shops, the past is not, is the barber shop in the past, now have a beauty salon, now has cell phone shop, was not, fitness advice, car cosmetics, car cosmetics, car, nutrition, learning English, is now a prosperous development of such services, which give us private enterprises from the employment, service sector employment, provide a great opportunity. I want us to open up the financial sector in particular, China's financial industry is really bad, it has no ability to mobilize into a high interest low interest money, so we all deposits can only enjoy 2%, private entrepreneur is in need of money, worry with joy, this is our State of the financial sector. Why are causing in this way, is the State monopoly, do people not banks, United States, 7 banks, 100% is run by ordinary people, our banks and almost all are run by the Government, people can buy his shares. Becomes a very inefficient financial sector, resulting in real estate bubble, resulting in difficulties financing for private enterprises, SME development, many employment opportunities lost. Such bad financial sector cannot be rational allocation of money to various industries, businesses, national productivity lost. We call upon regardless of how long the foreigners in China banking, Chinese people not on the Bank of China, has now opened a small opening, Grameen Bank, microfinance companies in the country, but the opening is too small. And microfinance companies, only loan does not exist, no deposits, is not strictly business, management is playing with other people's money, mobilize others create wealth you use their money like ordinary business, what is the financial sector, so we have to gradually release the people Bank, financial institution limitations, the Chinese economy a lot today talked about a lot of problems, but it is not to say that there is no solution, I think an open financial industry has a lot of problems can be solved, which is today on private enterprise, I think that the release is crucial to the financial sector, today we have substantive recommendations NetEase open economic forum annual meeting, thank you very much. Moderator: private issues in the public domain is the problem has been the development of China, to develop the financial role of the private economy is very important. Soon we'll continue, Mao yushi teacher, also with the participation of guests coming to today's Panel discussion, welcome. Zhaapplication business card creditng Weiying (blog): Welcome to our final session, Mao yushi teacher course of development of private enterprise with us has done a very good summary of the, I added an example, at the time of 83 Wenzhou 7 people were arrested, one running, because he was making money, he makes people happy to catch up. Bao Yujun: our leaders see ordinary people life easier, cover the stairs suspect arresting people. Zhang weiying: contribution to the society at that time catching up, but also is a feature of a small number of countries, not all countries. Just say I think a problem, private and we called the State and economy should be private, meaning economy itself is a private thing, run itself into a unique concept. Two years ago I wrote an article, I talked about a point of view that is veteran-owned economic enterprises it is everyone 's, is a collective, national, private economy is personal, so I think it is wrong, the people's case, is using the right individuals we owned economy, State-owned economy in exercising their rights are personal. I guess the only where, right under the private economy is dependent on a particular property, communal economy is dependent on the right, you are a department level cadres at the Department level rights, the private sector is different from the State, whether you're shichu level section, there aren't even any level, in this sense we reform and opening up a certain sense, steering and property officer positions. The twists and turns, including us here. By 88 if you want to register a private enterprise is not possible for Commerce and industry, the law does not have this, only the collective or individual operators, cannot enroll for private enterprises, the reform and opening up 30 years later, still on this issue we are still under discussion, which I think is full of regrets. Many countries do not waste time on this, but our country on this issue including economists want to waste a lot of time, generally I believe that progress is still very big. I have two sentence description of your historical records has almost 1000 gold to live with a mayor, if you have 10,000 Gold and the Duke, we have only one table can be better than a King, that is, the leftmost Guo Fan. I think the changes are significant, the most important private enterprises have difficulty growing in recent years, legal freedoms more and more, but deep objective becomes increasingly difficult to survive, yesterday we had a material, Hebei iron and steel industry consolidation. Bao Yujun: Hebei iron and steel industry consolidation the last two years, employees declined by 24%, which is that provided survey data, private enterprise number in each province to rise in employment, but the 24% drop in Hebei province in China, a large proportion. This is the integration of resources fall under the slogan has serious consequences. Zhang weiying: Do you not sell him what to do, is not willing to sell it off, but his basis, makes me think we are in State-owned enterprises of private enterprise, often encounter is not a market logic, the robbers used logic, like Mao yushi teacher talked about a lot of things it was plundered, these are visits to the US, finally, we hope we are sharing a few words, Mao yushi teacher stands about microblogging Mao yushi instructor rose nearly 40 82 minutes very hard. Bao Yujun: basic views changes development way must to reform for premise, is not several aspects do real of reform, changes development way is difficult to, on has so years, from 82 open years to now, is because system deep problem, how modified several has told has, I does not repeat has, second is must vigorously development, private economic, seriously implementing last year May State publishing a new 36 section, expanded Association investment, unfortunately to now State hair 36 section to now no what-static, new 36 section with old 36 section, new 36 section on civil capital release engage financial, allows civil capital credit into, past is does not allows, now is allows civil capital credit, towns and villages Bank release ratio, to now implementation rules also no out, other monopoly enterprise not only no in also extrusion to. I think it is a question of ideology, and the other is a vested interest in obstacle and the third is the private enterprises ' own weaknesses, and ideological obstacles, that the capital for the time from every pore of the feet have left something dirty, but we are all parts of the country in attracting investment, but the private ownership of private property information is exploited, with these things it is from the primary school. In this case the development of private enterprises, private sector of the economy are helpless, is a last resort, our private economic development today is forced out. Private enterprise 82-87, has hired more than a few people caught up in private enterprises, employees now look like is the exploitation, boss top employees is to help the two words, now called job, same thing, different perspectives to understand. Class struggle is the exploitation, production point of view is the credit for being forced out, 82-87, 5 years, the central leadership speaking workers must not exceed 7, Central leader said: take a look at say, 5 years, the last 88 years of constitutional amendment, now in private enterprises, private enterprises what, no real solution, we still are from his useful to me, who are also avoided. To resolve this issue cannot be avoided, I think that more than 30 years of reform and opening up, true emancipation, actually is the problem, people themselves to create wealth to the national wage, work for the solution of their own forms of wage employment is the masses, after private enterprises, to take away your wealth, or 16 reports cannot be resolved at a later time, the protection of private property, or unfounded, violations of legitimate rights and interests of private enterprises are not other persons, mainly the right sector rights holders. I think that people create wealth solution of their own trade unions, and second, interest groups, because monopoly, monopoly is less likely to appear at real prices later, why are our largest monopolies prices higher, he has the final say, and how much is the cost of his who can make it clear that only after entering private enterprises, formed the competitive landscape, this is a secret, so many ring does not admit, came in later life down. But no such signal is to maintain economic security, 05, private capital release 10 has been still won't be able to get out of the file, this is not reform. Third, private enterprises of their own problems, 8.18 million of private capital, the registered capital is 17 trillion, enterprises of less than 2 million per household, each enterprise strength thin, advantages are established ownership of private enterprises, but also thin, family history management is difficult to meet the coming in and how much capital, joint restructuring private enterprises in this process, breaking their own property rights closed now 8.18 million private enterprise company limited less than 20,000 households, most of them are wholly-owned enterprises, this is their weakness, several areas caused by a combination of factors, reform, government reform, business innovation, I think it's that the two words. Zhang weiying: China has a lot of strange things, obviously things we would also like to proof theory, read a story, a person buying train tickets with disabilities persons with disabilities get, he brought disabled permits, steward for him, your disability do you have a disability certificate, he said no, but his obvious disabilities, short legs, but the crew said no, he says you are not a person, he said: How do you swear you please. Human rights are not simple, we want to survive, people want to do things right, innovation right here becomes a problem, you just said article 36 cannot be implemented at an early stage when the State Department issued a document quickly and resolute manner do, but now twice under article 36 of the State Council, why did you push the old fixed this issue. Zhang w k: members see has West tour set, Yang Jian has 36 variable, 36 no, must has 72, Monkey has 72 variable, we has old 36 section, no at most is Yang Jian, engage a people funded 36 section plus up 72 section becomes monkey, we statistics has about first a 36 section supporting files over 36 a, supporting than 36 also more, but also is does not works, why West tour set has to has answers, also is jump but Buddha Palm, this is large system, you wanted to jump has impossible, but has Buddha in Monkey on inaction I does not so think, you to promote Buddha and agent, including Kwan-yin, Sang Ton liberation thought, transformation upgrade, China economists, scholars with abroad is a bit strange is not full as, many things is do these work, is not do academic demonstration, or built die work, so this I wanted to also to do, this told of first a. Second-I wish to Mao yushi teacher members on the private economy at this years pessimistic, Guo Jinmin back how I use some number reported may not as pessimistic as we imagine, our media friends are some of the story is strong stuff, or the story really exciting things, including the circumstances are bad, there are indeed such a thing. Guo Jinmin retreat, but from the perspective of large financial institutions throughout the country, is a private enterprise step by step, expand private enterprise, tells me a simple number 03 to 08 of this century this round of high-speed development period, the period of five years as we all know, Mao yushi tellsState-owned enterprise makes a lot of money, but you need to see inside the 03 to 08 of private enterprises, State-owned assets 1 time really is in each of the 16%, growth is our Commission national economic growthwrongful death attorneys florida is good, but growth in 1 time and 4 times the assets inside the five-year growth of private enterprises, private enterprises from the assets faster than the State-owned enterprises. We will all say what about profit, State-owned enterprise makes more money, more private enterprises profit, growth rate of profit in 08 03 is 1.5 times of State-owned enterprises, private enterprises is 8.7 times times, so this is a big one. Everyone said that sales of State-owned enterprises, State-owned enterprises increased 1.4 times times for five years, and private enterprises increased 5.7 times times, they are much faster than award-winning State-owned enterprises. Zhang weiying: you 03-08 data we 08 special interest data. Bao Yujun: life easier 33% 08, besides 08 decline in investments of private enterprises, not increased unabated perseverance is 49%, 09 years a little better, investment growth, 33%, 18% decline in investment, others remain still. One-third businesses carrying the financial crisis, two-thirds of the enterprise is dead, the big picture. Zhang w k: impact of financial crisis on China, quarter of 09 begins to recover. From net assets margins, 08 private is 25%, 09 26%, State enterprise has been in maintain 11% points more, 08, and 09 is far than State-owned enterprises, private enterprise itself is has is strong of tension, 02, and 03 grab up placed out also to do, is has is strong of tension, growth extended I is does not worry, worry is we on private property and human rights protection, this things may is a maximum of worries, 83 to now this things and no is large of changed, we told this country into people back, 09 country into people back if is market fair competition to some State Enterprise assumes that this State enterprise efficiency is than private enterprise through market way acquisition this also can accept no relationship, fair competition, fittest. in large environment does not excluded excellent State Enterprise engage was good, through market method recombinant mergers and acquisitions is no problem, but problem vital is not country into people back, is for private enterprise, private home property and human rights protection this is very worth concerns, members know Hunan Chenzhou discipline inspection, Secretary of shot has, even private enterprise boss are can double Board, this situation Xia we private enterprise do, we private enterprise on to to makes how can human rights get protection on looking for umbrella, last is what system is rich system, Fu Hegui combination up, your is not noble is bigwigs, members see film let bullet fly yellow's Wolf, no approach property human rights was does not to protection, was does not to protection found umbrella, so words on makes China property protection human rights protection is a public products, protection each personal, on becomes private products, I pays I on can get this private products, and this private products may will transition protection or distorted protection will image so a situation, China private development I think itself expansion, accounted for national economy ratio is decline of, but you to worry China is became Indonesia so of national. Social unrest, is now expanding State-owned enterprises, is a lot of difficulties and net assets of rate of return is lower than the previous, in order to promote fair competition in the market, in order to promote the rational preparation, our 35 State-owned enterprises, privatization of vigorously, so our generation of economists, a very important mission that is if it is to follow, let the bullets fly Jiang Wen said xiantaiye, we need to do three things, the first privatization, privatization of the second, and third is privatization, Bao Yujun: the problem is that we speak our truth, people are being detained is giving us a hat, bourgeois liberalization problem is this. Zhang weiying: private business owners, you feel in your own management of private enterprises in these two years what's important about changing economic environment. Guo Fansheng: what is the core of the economic, not financial, not the stock market, nor the real estate business. No Enterprise do was good who are buy does not up House, who are does not loan these monopoly enterprise on no market, this years private enterprise operating General, began from accept system challenge, to accept themselves of challenge, told private, we of reform and opening up early this industry as long as private on can earn, clothing, shoes, appliances, and we today face is United States of private ownership enterprise, Germany private enterprise, European private enterprise, they with we Zhijian of competition, I think this is to from a new of way considering, I special agree front several economists talked about, China to protection private enterprise of right, first a concept who is China economic of leadership forces. The past 20 years, 30 years of reform and opening up, our entire capital investment for the private enterprise social 20% not, but today we 70% GDP,90% per cent of employment in private business, 65% over taxes, State-owned enterprises ten dollars can't do things that we did a dollar. China's economic leadership for private enterprises, there is a set of data in the most typical of listed companies in Shanghai and Shenzhen 400 private enterprise and public enterprises, revenue growth, private enterprise is 17.2% State cent, net profits of private 36.1%, State-owned enterprises is a long-term negative, return on assets sent three times, poor return on net assets is also 3 times, shows hope for rejuvenation of the Chinese nation has been transferred out of State-owned enterprises to private companies, yet our society is going to give it in order to promote economic and political system. If we really understand it, why don't we also with Guo Fansheng companies adding non-public enterprises, non-public derogatory words, non-public are bad, but I think all of us entrepreneurs, we don't care about this, because we have such private enterprises in the private sector, is not in the national policy of inspired, is continuously do a good job on its own, national policies, do a good job, after the policy, we never desire a policy first, after the dry. There is also one of the biggest problems, we talked about the most original sin problem, good discussion on the original sin, I at the we the people's University lectures, a teacher asked you so good how do you explain the original sin of private enterprises, convergence time of original sin from 90 to 10, 20, nothing more than 20 I Feng Lun, we ratchet is bloody, between 20 and there is another35 million employees laid off from State-owned enterprises, and my kids go to College after soldier comrades were laid off not afford himself, but more than 35 million people survived very well, is to continue to work in companies like us, do not understand China's economic and political reforms is not defined, we the development of private enterprise, has never been under policy calling out, do have to give your policy over the next 20 years, 30 is still to this logic. We have always been the protection of private ownership, it is important to protect private ownership, but everyone thought no, India, Pakistan, the Philippines has never engaged in a public-owned them better than we do today, United States of private ownership of private enterprises and enterprises in China, Pakistan and China, we have a kind of comparison. We often say we were bullied a lot of private enterprises do not humiliate you can do? Chinese household electrical appliance enterprises do not say anything else, household appliances clothing enterprises, labour-intensive enterprises, 1 time wage increase for workers who can survive, why do people pay 10 times higher than I also live quite well, China's private economy is built today must be entered from the original state science and technology industry, for example, like Microsoft, Wal-Mart's company, Pfizer, logic of accumulation of private enterprises and we have business logic is not the same. China's next stage of reform to the system of private enterprise which, unfortunately, economic circles in addition to Zhang weiying, China today there are very few people, we discuss enterprise issues, managing assets management responsibility contract stock system has been discussed, today China's private enterprises the how to change your system down no one discussion, really become a totally private, national state you will be able to do all, well, not such a thing. Because I 20 years Qian sea, do today I from a dozen a people to 3,000 people listed company, I told these words didn't was called I, economists told on playing they, says they shouldn't says so, actually private enterprise itself face inherent challenge is very grim, manufacturing and created problem, we on has number we understands what is created did? here I do not want to told theory, China has a industry, China all private enterprise are do here strong, we to all industry will to we, Internet industry, is this years funds, technology, talent most intensive industry, China all industry playing but Americans, this industry we thoroughly defeated Americans, NetEase, SINA defeated Yahoo, Baidu defeated Google, Qian two days Francis Chan listed Amazon 300 million $ sells, Francis Chan listed 2 billion USD market Internet industry China Enterprise full beat United States enterprise, why this problem so far no people research, stems from what why this industry Chinese can than Americans strong, talked about we Internet industry, we company staff wage, option income must than Americans good. Zhang weiying: Internet industry is an important feature, is different from traditional industries, the Government there is no set foot in this industry, many government departments do not understand, Guo Fansheng: Government departments do not understand a lot of industries as well. I think that the Internet industry I last October was a lot of financiers on Wall Street, United States Colombia University, discusses why the Chinese Internet industry than the United States better. Zhang w k: whether Sina, NetEase, Sohu, dangdang, Baidu, which is not followed, you are in the local market, you're in the international market and there is no better than him. Guo Fansheng: China industry as long as than in local market do than he powerful on enough has, first in local than he strong, then again out than he strong, most important is we these company is entrepreneurs, dangdang listed we a company produces hundreds of a millionaire, Americans listed confessions produces a large number of millionaire, into China becomes professional sexual company, so Google playing but venture sexual Baidu, professional Amazon playing but dangdang, is system problem, most important is are is private ownership, private ownership with private ownership Zhijian also has difference, this problem I may told was does not, but this problem is must to research, we these Internet company national no to money, we took was is Americans money, we also no original technology, we with Microsoft, Oracle software, Cisco network hardware, they device, technology, they money defeated they by of is what, by of these private venture system. I think this most important, to to simple private, narrow family enterprise through created system becomes Pan system family enterprise this is technology most important, does not go this section Road, I to you loan, to you system shoes factory with 10,000 people expanded 20,000 people national income increased has did, pollution reduced has, you how has design brand, design brand produces company to by let wise men does not money also has shares, only so system China private to real for large, but has a section, government suppressed is do is unlikely to, do does not strong, Government to enlightened, today Government does not enlightened, says does not let you development, NetEase, Baidu development, dang Dang development, Americans in research why United States world most powerful of Internet company, in China all and we no people research, regardless of right, economics territories on this is to has sound of, no sound is does not of. , In turn, see, I in United States, and they several financial learn home discussion, they says you told I a China economic is to today can continues development, also can continues development a reason, I told has population dividend reform, market people says are important I are understands, but no engage has planned also cannot understands, population dividend than you large also no than Hello, causes is what, I suddenly thought may of reform and opening up a knife China entrepreneurs are kill has, 90 is has real significance Shang private home, this batch entrepreneurs passion is pure entrepreneurs, are is entrepreneurs, to United States has 100 ex million one-third is rich II generation, one-third is professional managers, only one-third is entrepreneurs let Ford are resurrection, Bill Gates again young 20 age, United States all enterprise leadership recognition is not rich II generation and professional managers United States economic today will how, they think this is China these years economic development most important of causes, because produces has a support pure of and pure of venture class, managers with managers mentality do company difficult only and difficult this again continued 20 years becomes China economic again active 20 years of causes, Zhang weiying welcomes first research entrepreneurs problem, regrets China now no several economists research entrepreneurs problem, are in on behalf of we talk does not research we of problem, how can talked about ideas Shang thanks. Zhang weiying: including Japan's economyDecline, some analysis one important reason is that saying that generation after the war Japan entrepreneurs have abdicated, 90 's greatest features is not responsible in the future, Samsung, why don't last more than Sony, Sony, Samsung are completely different, Samsung has 10 billion investment will be successful. I emphasize that this is what it means, next China's economy is facing some troubles, we in the 80 's, 90 's pioneering people, grow old, now to Zhejiang rich Basic II is not willing to do, and don't want to be a manufacturing, they want to do real estate, business, manufacturing industry is very small, China faces a major challenge. I wish to Mao yushi (blog) teacher rested for a while, now give you advice, in particular, have any comment on Guo Fansheng speaks. Mao yushi: Chinese entrepreneur is the most difficult situation compared with other countries, responsibilities of the most significant, very easy to grow up in this environment. Because we are a foundation of Marxism as a theory, and his argument is that entrepreneurs are exploiters, and we liberated after 49 years, 30 years of indoctrination, rich people are evil, are exploiters, the idea had until now did not deny that, so entrepreneurs were you misunderstood some exploitation of people, is something people, this extreme error. We want to think about it, so much wealth was created after the reform, reform of previously poor, our labor what has changed, now labor may be a bit less than in the past, we to do six days a week, for five days, that time is not afraid, tired and go to the countryside is not afraid to sacrifice, then the labour nor wealth, we now easier labor creates a lot of wealth, where the difference. There is now the party's leadership is the same, intellectual contributions, too, the difference is that we do not have entrepreneurs, entrepreneurs have now, why entrepreneurs so important, because he was able to combine various elements of technical resources, capital, labor, combines marketing, manufacture products to meet market needs at the lowest cost. This role is not the workers and peasants, not intellectuals, nor from government officials and entrepreneurs, entrepreneurs can effectively mobilize community resources, and the ability to be someone else can't do. Labour to work effectively, and do not take a lot of work, and therefore must be implemented under the Organization of labor, capital of technology is the same, well it's not a fortune, the key to wealth is its combination of good, this is the contribution of entrepreneurs. But now this knowledge is insufficient, a country's economic strength is not to see how much work you did, but what do you entrepreneurs. Guo Fansheng I heard about the importance of entrepreneurs, it's true, so we have to make to sustainable economic development in China, it must be to entrepreneurs to be kind to entrepreneurs, treat entrepreneurs first you want to protect their lives, property. Human rights in China are not equal, and only a high level of protection for people, not only protection but also to violations of the rights of others, the privilege can be ridden straight into, you can violate the rights of others, our social entrepreneurs are not protected, so they want to be a member to strive for when Congress, join, why this thing is not to do business with, but entrepreneurs to find when the CPPCC, why protect a little better. In fact that protection was also unreliable, says off off, these relationships are the protection of human rights, involving the entire China's economic development in the future, we will deal with the protection, the protection of property, equality, there is no privilege, must be a legal society, leaders speak not a word count, and now wants to fight a leadership of an enterprise is easy, leaders arrested two days, your business will be ruined, such a failure to protect the status, China's future is a worry, today opened the care a little more hope that in this regard. Care entrepreneur's human rights, human rights are not affected by the infringement of the privileges, not just the entrepreneurs, workers, they are either affected by violations of the rights and interests of farmers, thank you very much. To recognize the importance of human rights, no human rights social economy is not up, was no development of our economies can now have a certain amount of the State of human rights on human rights, status of human rights has improved greatly, with Mao's time than, at that time the Government to kill a person is easy, our State of human rights has a lot of improvements. But has the right to life stronger than in the past, and received, a thousand times, but the property was not too guarantee, so to speak out holding high the banner of human rights. Question: I am particularly concerned about the innovation capacity of the Chinese enterprises, Guo teacher particularly excited that the Internet industry, I think you and teacher evaluation of Chinese Enterprise Innovation now how do you see, and would like the United States Japan enterprises through innovation to lead the industry, leading the development of an era, the future Chinese enterprises innovative way in which it is not possible to say no is pirated, really are driving the development of national or global economy. Zhang w k: first innovations was a typical long term behavior, an environment which discourages enterprise long-term behavior of a country, then it is not conducive to innovation. Our nation's institutional environment, to improve, but a lot of long-term behaviour is not very encouraging, State-owned enterprises have the tenure system, we are now tilled land make the next harvest, private economy into a poor human rights protection of property rights is not willing to do it, intellectual property protection not protected is not willing to do. The second is a typical risk behaviors, input must be output. Like systems there is a relationship, may also cultural relations, there is the financial system and capital markets have a great relationship. Third a is innovation is a typical created effect, is not copies others, this things may and education system, research system has is large of relationship, talent has many is backlog in State Research homes by inside, or to awards for guide is does not conducive to innovation, but we also see we past years, five years, ten years, to now China from national to enterprise on innovation Geoscience is very attention, regardless of is oral also is implementation are is has is large of improved, and national in inputs, Enterprise inputs are greatly enhanced, we in United States, abroad innovation is a burning money behavior, members are know United States friends many large, actually rotten tablets many, many repeat labor, Harvard University has many inputs, no benefit but has been do, is a is burning money of behavior, we now inputs are in increased, I see we past years regardless ofAre State-owned enterprises or private enterprises, especially private enterprises do have greatly improved innovation capacity, I still have more confidence. Guo Fansheng: innovation core is not Government is enterprise, Enterprise Innovation now of innovation, gradually from Edison invention becomes team innovation, long-term accumulation sexual of knowledge innovation, this innovation on needs has innovation system, FAI Swiss company has thousands of name scientists, research a drug do has nearly ten years, this drug is United States drug prison Council approved listed they all of these people most in accordance with the company option system arrangements are became has millionaire, this is venture system, you does not too agree we innovation, look at Baidu software, China search must than United States good, Internet than they do was good, China NetEase and SINA we now portal website of resistance pressure degree than United States company technology good morning 10 times times, so Enterprise innovation system, stems from a let knowledge has people can fast to knowledge changes for wealth of process, this process is not by boss facilities to by system is venture capital system, Ding Lei, Li, Francis Chan rich has, we original no money took of is wind cast no wind cast system on impossible innovation. Bao Yujun: there is also a government standards, I know, a lot of new products, and feel good, government sector standard setting is left behind, can put into the market, has a right to government departments, standards Department is falling behind serious constraints on business innovation. Zhang weiying: a lot of standards is the formation of the market, a lot of industry is an industry standard for natural, if sometimes artificially make our Government standards may not be conducive to innovation, I understand that innovation is very wide. In the early development of Chinese enterprises, I think that imitation is the most important, because you own very big difference between technologies and others, to today's times might not be the same, when our technology to the forefront when no does not have its own innovation, now the Internet, we have to build yourself one completely different from the other standards of the Internet is a fool, for example, we can e-commerce competitive, this is not quite the same, including the Chinese Web site features, I remember our DVD, more for competitive because we pirate, all special error correction ability is strong, so Japan DVD sold on the Chinese do not have our good. Question: under the current situation in China, China's economic development so fast, is good coordination environment of China, how much is this explanation, I was doing the work of lawyers. We this by do large activist work, I themselves representative shareholders, representative Jimin with listed company do many struggle company, we lawyers also for human rights do many work,, for example reporter is grab of when, we station out authoritarian, officials is grab we station out for he activist, we in this process among, we of experience China currently told entrepreneurs environment in deterioration, entrepreneurs environment including two a level, first is economic level, second is legal level, China economic level environment does good also can, but China entrepreneurs legal environment is difference also in deterioration, deterioration flag is what, we think China current in protection human rights legislative Shang also can, but in judicial Shang is difference, judicial how difference, public power is everywhere does not into, public power on private right against cannot get effective of sanctions. In I agent large case of when, I for entrepreneurs really of pinch to cold sweat, in do many enterprise behavior of when, they in tightrope rope, they faces China legal environment so bad, they in with public power with yellow died Wolf playing playing with fire game, very risk, many entrepreneurs in was world smug, out know, politicians words most does not trusted, key moments must is a victims, as entrepreneurs to concern good of environment, we needs concern human rights, concern human rights, concern property, just Guo Zong says many people says entrepreneurs has original crime, does many people so references, we solution State-owned enterprises 35 million Danang we original crime paid off has, you says paid off, this is public power breakthrough please you protection good themselves. Guo Fansheng: I special agree you of is, but China is first has human rights, also is first has has reform, is first has private enterprises development, I from Enterprise angle I is deep this road, first has private is private protection system, has private is good development only will was human rights protection, so has has 8 million private we now appeal is not has has that you of enterprise bad, corruption, India everywhere are is, we says they of problem everywhere can says out, he has which with we as, corruption problem is not total system unique, private ownership also has corruption, if says corruption we on cannot development has, we private development is because corruption and I cannot development, I does not so think, also corruption environment why has do was good, bad of, I as entrepreneurs so told members may understands I, I as economists I can't so told, academic is so, you says individual examples has, I asked you why has Taiwan and Hong Kong, Hong Kong, entrepreneurs willing to to China to, I answer can't thanks. Zhang weiying: entrepreneur talking generally softer, you rather intense, the next question. Question: good teachers, I am personally concerned about the difficult problem of financing for private enterprises, my questions with regard to financing for private enterprises, what are the biggest problems we encountered, and is financed in the course of our own does have some issues in need of improvement. Guo Fansheng: we never loan, I knew you better loan sooner or later have been stuck by him. The future is to loan until the banking system reform in a good, not to give me money, I'm cheaper than financing financing when refinancing. Bao Yujun: SME financing is an eternal question that China is a system problem, unified financial system on diversified business enterprise, the basic contradiction in this place, no bank for private enterprises in China, listed banks are not intended for private enterprises were State-owned enterprises, local governments, is impossible to expect him to give you credit, about 10 trillion in new loans last year, Hu Jintao, General Secretary in 17 major report very clearly, speeding up the financial system, form a diversified forms and multi-level, agency reasonable operating safety of the financial system. Monetary financing must be approved, now more than more than 2000 public companies private enterprises account for about one-third, the best approach is to develop grassroots Bank, village banks now rules fail to come out, so now the issue came out, loan sharking a lot, many investment and financing company loan sharks, private enterprises themselves enough credit, under such circumstances the private, restructuring, private enterprise is not necessarily from the banksLoan, we can assets between private enterprise, through the solution, not a road, a variety of channels. Zhang weiying: financing problems are common problems financing difficulty of any State, the other problem is unique to China, we call this concept of illegal funds, this concept is not illegal fund-raising in foreign countries, fraud, and so on. Go any further we have an extracorporeal circulation, all banks are in the loop, this concept seems to be gone now, might have allowed the in vitro, the concept of illegal fund-raising is serious, Sun Dawu because this was sentenced to four years, has also a similar case in Anhui province recently, these similar case does not mean that pay people deceived, rather than to offend Government officials would get you in trouble, said illegal fund-raising concepts when can I cancel out what is what, fraud, fraud, and so on, I think, on the financing environment is a major improvement. The last question. Question: there are two problems, the first question to ask Teacher Zhang Weiying, you talked about in his speech this morning on economic transition issues, put forward a number of years, we have 35 to accelerate economic restructuring, I would like to invite you to analyse when can we this transition to full, 45 will be made the transition, what was the full, the second would like to invite teachers to 35 private economic planning planning have any suggestions. Zhang weiying welcomes: including reform we annual are in references, but you says of mean past made many things no is large of changes, I think no is large of changes, has a is important of causes, is actually we national leading investment leading development sometimes hinder has transformation, like we originally Qian two years economic probability adjustment has, results Government see financial crisis to has, large invoice child placed credit, decline to hate, release to fast, this when no people thought transformation, also has a causes we state enterprise words, we many resources sexual enterprise, to he transformation also does not too easy, so we also has many other of system, I in other local told has, entire national told State Enterprise accounted for proportion so of large words, is difficult to becomes people income, constantly by investment, State Enterprise make money so more State enterprise is not people income, are is becomes Foundation investment. And I think one aspect we are innovative, creative is one of long-term investments, do it today, not next year, the year after a five-year look at the results of this year, ten years from now if you are unsure about the future, long-term concerns over the future no one wants to do things, so many companies in China is something short of enthusiasm, but long term there would be no, wait, cause is very large, loose monetary policy is never true transformation may occur, that is why we developed policies need to take into account issues. Bao Yujun: 35 period between, to real changes economic increased way development direction must by private, 21 a objective Shang also forced we Government had to considering civil, bank credit choujin, financial policy, financial took money engage investment impossible, financial space is small, local government financing platform deficiency so more, financial took money impossible, under to development only absorption civil investment, this is trend real to do consciously is difficult to, do process Guo Fansheng told themselves found good themselves of development direction, through system innovation and management innovation operating system innovation, now Guo Fansheng told of reason is on, China private enterprise is not call out, is themselves dry out of, dry out yihou, also does not recognized you, think this guy is a monster what, see a see again, see you also decent last approved you has, don't, with to you please to impossible only themselves do out. Zhang weiying: last thank you, I don't think this discussion forever finished, we discussed some issues are old, some new way of thinking, Guo always get there are always new ideas, but we also several experts have some new way of thinking, we ourselves honestly just tired, spoke of the number of times. But white said, to say White said, finally thank the experts, thanked all those involved in thanks. Moderator: thank you to attend this forum, this afternoon, we have to this end. (This article source: NetEase finance) on page 1 2 next page