Talking about Li Keqiang's "decompression" thinking

Summary While there is always, at home and abroad for China's reform strategy very critical level, today, some even blame the obvious policy reform deviation; but it is undeniable, since last year, Prime Minister Li Keqiang led the introduction of a number of economic reform policies, such A good feature and...
Despite the fact that at home and abroad, China’s high-level reform strategies are quite confusing and inconsistent, and even blaming some reform policies for obvious deviations; but it is undeniable that since last year, Premier Li Keqiang’s main export strategy has been such a Good characteristics and trends: Many new reforms at the micro level are getting closer to China's productivity level, so they are recognized and praised by more and more market participants. These commendable reforms are not “strengthening” for enterprises and the public, but “decompression”. They are not a strong push for self-willedness, but a moderate adjustment, and even timely mistakes and corrections, so that the macroeconomic operation and the current level of China’s productivity Adapt as much as possible.
Since the middle of last year, Premier Li Keqiang has paid special attention to three things: First, the characteristics of the domestic and international economic situation; Second, the living conditions and difficulties of Chinese enterprises; Third, the demands of people's livelihood.
The public can clearly see that the pragmatic ruling logic he adopted was: visiting research--expert discussions--careful planning-making reform decisions. The biggest feature of this decision-making thinking is that many policies at the micro level are increasingly “grounded” and are compatible with the level of productivity in China at this stage. It is undeniable that many of the reform decisions made in the past 30 years have caused major mistakes, which have created many incomprehensible “cooked rice” for the subsequent development, because all levels of government have driven the “willfulness” under the pressure of power. As a result, many areas have surpassed the productivity level of “savage growth”, and only a few people shared the opportunities and interests of the public.
On April 13, Premier Li Keqiang presided over the State Council executive meeting and decided to reduce the social security contributions rate and the proportion of housing provident fund contributions in stages, thereby reducing the burden on the market participants and increasing the cash income of employees. The meeting decided that on the basis of reducing the three social security rates for unemployment, work injury and childbirth last year, the provinces that pay more than 20% of the basic endowment insurance units of enterprise employees will pay the proportion within two years from May 1, 2016. Down to 20%, or even 19%; the total unemployment insurance rate will be reduced from the current 2% phase to 1% - 1.5%, of which the personal rate does not exceed 0.5%; the housing accumulation fund contribution ratio is higher than 12% Standardize and adjust. This decision is to clearly reduce the policy and make the policy and productivity level "close".
Just think about it: If the government gives a farmer an imported German-style modern agricultural operation equipment, it is tantamount to giving Chinese farmers a pile of scrap iron, because the productivity level of Chinese farmers is too low to be able to “carry” Such modern productivity; if the government forcibly promotes the so-called new urbanization construction, barbaric introduction of green landscapes and public service projects in large cities, and urban self-generated economic cycle, management and operation capacity, financial resources, systems, experience, etc. cannot be followed up, that is also Labor and people are in a big way, because the productivity level in China is too low and varies greatly; if the city government forces the use of the "urban management force" to suppress the city's "natural" market transactions in order to improve the city's appearance and maintain procedures, it will inevitably cause public anger. Because China's current level of productivity is still not up to the level imagined by the head of the city.
An inevitable rule of the evolution of the global social civilization and economic operation in the past three hundred years is that the national economy's operation, urban construction and management level of a country or region must be based on its level of productivity. The improvement of productivity is a gradual and insurmountable process. It is necessary for the entire country to "coordinate and advance" in the basic political system, education system, and rule of law construction for many years before it can be formed.
Of course, we must see that there are still many decisions in the field and in many aspects from the central to the local level, which clearly exceeds the current level of productivity. The consequences will inevitably result in huge waste of resources and waste of opportunities.

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