NEWS: China's economy has entered a stage of high cost development

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China's economy has entered a stage of high cost development, and further cost reduction is facing many challenges, such as the superposition of internal and external risk factors, the sharp narrowing of policy space for "reducing burden" and the rising trend of factor cost, according to the cost reduction report released by the Chinese Academy of financial Sciences recently.
Liu Shangxi, President of the Academy of finance, expounded the main contents and basic viewpoints of the general investigation report and pointed out that due to the lack of stability and coordination of policy based cost reduction, and the limited ways and effects of load reduction, it is easy for enterprises to form policy dependence and weaken the endogenous power of cost reduction.
Therefore, the cost reduction should be changed from "mainly relying on reducing burden" to "mainly relying on innovation". The cost reduction should be integrated into the national innovation driven development strategy. By comprehensively deepening the reform, the government's institutional innovation should be used to drive enterprise innovation and form a cost reduction force.
Liu Shangxi put forward a series of concrete countermeasures and suggestions, mainly including: the system innovation should combine the cost reduction with the comprehensive deepening of reform; the system transaction cost reduction should be combined with the continuous optimization of business environment; the tax burden reduction should be combined with the improvement of the financial and tax system reform; the unreasonable labor cost reduction should be combined with the reform in the social field; the financing cost reduction should be combined with the deepening of Finance Supply side reform should be combined; reducing energy consumption and logistics costs of enterprises should be combined with promoting energy and transportation system reform; enterprises should effectively hedge high cost challenges by increasing cost conversion rate and added value.
The report points out that since 2016, the cost reduction policy has restrained the rapid rise of enterprise cost, alleviated the difficulties in the transformation and upgrading of enterprises, cooperated with the macro-control policy, and to a certain extent supported the stable operation of the macro-economy. The sense of gain of enterprise burden reduction has been enhanced, the institutional transaction cost has been declining, the business environment has been greatly improved, and the cost reduction policy has basically achieved the level. Segment goal. However, there are structural differences in the degree of enterprise cost reduction, so it is difficult to fundamentally solve the problem of high cost of enterprise development.


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