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CPPCC Member Guo Guangchang: Enhance Total Factor Productivity through the Establishment of the “Intelligent Economy”

 

Xinhua News Agency, Beijing, March 11 (reporter An Bei) – The draft of the “13th Five-Year Plan” makes clear provisions for the expansion of network economy space. In the 13th Five-Year Plan, a strategy to become a strong Internet-based nation, nationwide big data strategy, as well as a number of major projects related to informatization are proposed.

 

 

CPPCC member and Chairman of Fosun Group Mr. Guo Guangchang noted recently that promoting supply-side structural reforms and improving total factor productivity need to achieve breakthroughs. In other words, it is necessary to reduce production capacity as well as inventories. At the same time, it is necessary to “building up” by integrating national advantages and various leading industries to form China’s new global competitiveness driven by customer demand. “In view of the current global economic trends, creating an “intelligent economy” covering society as a whole will be an important starting point for breakthroughs and building up.”

 

 

The “intelligent economy” is to structure social organizations, economic development and business operations on modern means of information such as mobile Internet, with the aim of opening direct and low-cost information transmission channels between supply and demand while enhancing the precision of products and services with the help of big data. Creating the “intelligent economy” will effectively enhance the efficiency of various departments, reduce inventories, avoid process waste, promote information symmetry, and meet individual and quality needs, thus achieving improvements to total factor productivity.

 

 

Mr. Guo Guangchang has proposed to comprehensively accelerate the construction of the “intelligent economy”, with management of supply-side structural reforms to incorporate the complete industry chain and all of society. Under this plane, the state should present more support to businesses, especially conventional enterprises, so as to facilitate the transformation toward the “intelligent economy”. China should engage in in-depth streamlined administration and decentralization of power, with further promotion of fiscal and tax reform. In this way, a more convenient business environment for the innovative development of Chinese businesses can be achieved.

 

 

Mr. Guo Guangchang likewise suggested that the state should further encourage Chinese enterprises, especially private enterprises, to take proactive steps to integrate global resources. By doing so, introduction of overseas advanced technology can be supported, with special attention and support given to technologies, brands and channel resources associated with the “intelligent economy”