查看回信留言

首页>News
'New Keqiang index' highlights income level and environment
国务院新闻办公室网站 www.scio.gov.cn   2015-11-25   来源:China.org.cn
  

Chinese Premier Li Keqiang addresses the China-Malaysia High Level Economic Forum in Kuala Lumpur, Malaysia, Nov. 23, 2015. [Xinhua]

What message has the "new Keqiang index" sent to the world? The question, posed by China Business News, was answered by the newspaper on Tuesday.

In an article published in the Economist magazine on Nov. 2, Chinese Premier Li Keqiang mentioned that the criterion of the three indicators, namely, power consumption, rail-cargo volume and new bank credit known as the "Keqiang Index," which the Chinese government uses to assess its economic performance, has been altered. Li stressed that in the future the government will pay closer attention to employment, residents' income and the continuous improvement of the ecological environment. Therefore, analysts have dubbed these added indicators of employment, residents' income and energy consumption per unit of GDP the "new Keqiang index."

The "Keqiang Index" was first publically mentioned in 2007 when Li was secretary of the Liaoning Provincial Committee of the Communist Party of China. While meeting with visiting foreign guests, Li said that he preferred the three indicators to be used to evaluate the local economy because they could squeeze out the overstatement in statistics. At the end of 2010, the concept was put forward by the Economist magazine and made known to the world.

However, incompleteness is hardly avoidable for any indicator or index. In Liaoning Province, where industry is given the priority, it is appropriate to judge the local economy through the "Keqiang Index." With the constantly changing economic structure, particularly with the continuously increasing proportion of the service industry, and the continuous improvement of energy saving and environmental protection technologies, the local aggregate economy is increasing, while the volume of railway freight and the volume of power consumption may fall instead of rising.

From this perspective, the change of the "Keqiang Index" into the "new Keqiang index" is the product of China's "new normal" economy, and also reflects the decision-makers' viewpoints of keeping pace with the times. More importantly, the "new Keqiang index" has sent a message that the Chinese government has gradually shifted the focus of its work from economic development to coordination of the economy, people's livelihood, employment and the environment. In any case, the "Keqiang Index" is still centered around the GDP, while the three indicators added to the "new Keqiang index" have surpassed the scope of the GDP even though they're still related to it.

It looks as if the "new Keqiang index," added with the three indicators, is not so new, but it contains Li Keqiang's innovative spirit, his thoughts and feelings about the people's livelihood, and his economic strategy. For example, employment cannot be sustainable once imbalance occurs between supply and demand or when there are excess production capacities. According to Li's ideas, employment should be linked with entrepreneurship, and entrepreneurship should be linked with innovation. Significantly, the urge to "encourage the people to do business creatively and drive innovation" under the guidance of the strategy of "Internet plus" is rebuilding China's economic image.

The development of new industries and the transforming and upgrading of traditional industries has eliminated some old jobs. At the same time, it has created many new jobs. Such an economic ecological chain will bring job opportunities endlessly. Over the past few years, Internet businesses have greatly developed in China. The State Council has recently issued a document to promote the development of rural e-commerce, which will undoubtedly produce an impact on the traditional retail industry. However, the development of new industries has created new jobs, and at the same time, it has made life easy for people and stimulated consumption.

Consumption and residents' income are closely related. In the "new Keqiang index," the improvement of residents' income is not only an important part of comprehensively building a moderately prosperous society, but also an important force driving economic growth. Li Keqiang said in his article, "Consumption, already responsible for 60 percent of growth, keeps going strong and up-market. Take outbound tourism for example: Chinese citizens made over 100 million trips overseas in 2014, and the first half of 2015 saw year-on-year growth of 10 percent. In short, despite moderation in growth, the Chinese economy is moving in the desired direction of stronger domestic demand and innovation."

As for the improvement of the ecological environment, strong administrative law enforcement and supervision are essential. Reduction of energy consumption per unit of GDP will become an index of assessment. However, they are relatively passive methods. To regain the initiative, economic means are the clear choice. In June 2013, the State Council issued the Action Plan for Air Pollution Prevention and Control (known as "Atmospheric Ten"), the guide for national air pollution prevention and control in the future, during which an estimated 1.7 trillion yuan (US$266.1 billion) will be invested by the government within the next five years. In April 2015, the State Council unveiled the Action Plan for Water Pollution Prevention and Control (known as "Water Ten"), in which an estimated 2 trillion yuan (US$313 billion) will be invested by the government. It is reported that at the end of this year or by early next year, the "Soil Ten" Plan is expected to be issued, in which an estimated 5.7 trillion yuan (US$892.1 billion) will be invested by the government.

A total of nearly 10 trillion yuan (US$1.56 trillion) are needed for air, water and soil pollution prevention and control. Some of these investments will create GDP, but some will probably not. However, they will create new jobs, raise the income level of residents, and improve the quality of people's lives. More importantly, it will turn the vision of a "beautiful China" into a reality. This is the most important message which the "new Keqiang index" has sent to the world.

[责任编辑:康小兰 ]
相关链接>>
  • Notice of SCIO Policy Briefing on Nov. 26
  • Increased resources to boost education
  • President Xi to attend Paris climate conference, pay state visits to Zimbabwe, South Africa, attend FOCAC in Johannesburg
  • Key points of SCIO briefing on Nov. 20
  • Jing Junhai addresses 1st China-UK Media Forum
  • Huang Kunming expounds on key meeting
  • China, US pledge closer IPR cooperation
  • China and Malaysia Vow to Boost Bilateral Trade and Investment
  • China, US to Deepen Sub-National Economic Cooperation
  • Upcoming summit expected to take Sino-Africa relations to new height: envoy
  • China vows to win battle against poverty
  • China rolls out pro-consumption measures
  • Infographic: Spirit of the Silk Road
  • China offers ASEAN loans, development proposals amid closer ties
  • Premier Li seeks to calm waters in the region