Discussion about new normal and macro—control policies towards Chinese economy

Abstract：As Chinese economic development come into the high speed range， the Chinese economy has entered a new norm， which requires good practical grasp of mutual relations between the increment of the total， to ensure a smooth transition the new normal， which is one of the main task of macro-control policies current.Chinese economy under the new normal encounters a number of risks and challenges， while also facing new development opportunities.This requires that our idea of macro-control should be adjusted according to the changes of： full use of market reforms to stimulate infinite vitality， enhance the driving force of development for the sustainable development of economy and society create good conditions.In this article we outlines the main characteristics of the new normal economic operation， it analyzes the challenges under Chinneses economy and discusses the adjustment strategy under the new normal， Chinese macro-control policies.

Key words：Economy；New normal； Macro-control policy

Since the outbreak of the international financial crisis sweeping the globe rate of Chinese economic development in the twists and turns constantly reduced. Although since 2012 the growth rate downward trend appeared to ease， but the economy slowed down， it is an indisputable fact. China's GDP growth in 2015 has been reduced to 6.9%. Due to sustained reductions in GDP growth， China's economic structure has also had a very big change. Reduce exports from the average growth rate of over 20% before the crisis to less than 10%， the contribution of consumption to GDP growth has exceeded investment. These have proved that China's economic emergence of a new stage of major changes， GDP enhance begin to stabilize above， the high speed development platform. May 2014， the first General Secretary Xi Jinping put forward a new normal in Henan investigation. November 9 the same year， President Xi Jinping delivered a speech， the system describes the main characteristics of the Chinese economy and its New Normal brings new opportunities when attending the 2014 APEC （APEC） CEO Summit. Thereafter， the new economic normal formulation more and more into people's field of vision. The essence of the new normal is to prove that our country is entering a period of rapid growth in the previous period of rapid growth and has a great difference. After the new normal economy is in line with national economic development to catch up with the universal law， it is the product of more high catch into the stage later. Economic development under the new normal will stabilize， which requires constant breakthroughs hinder aspects of institutional mechanisms， the use of deepening the reform measures in order to obtain a new driving force for economic development.

1. The Main Features Of The New Country Under Normal Economic Operation

In the process of transition， Chinese economy has produced a new change， when Chinese economic operation features have been initially demonstrated. Change from current and future trends have emerged to observe， Chinese economic operation will reflect the following characteristics：

（1） economic growth rates remain at around 7% once they begin to enter into under the new economic normality， increase in power there will be two important changes

one is from must rely on factor inputs and productivity of the various elements Switch to upgrade is mainly dependent on the contribution of the latter； on the other hand is total factor productivity gains from the transfer of the main elements of the changes by sector as by internal departments of survival of the fittest. The growth rate of investment in the future there may be a downward trend， while the growth rate of total factor although more for enhancing the contribution of the share， but its growth rate will be reduced， then affected economic growth rate will be higher than the high-speed growth period considerable decrease.

（2） the contribution of domestic demand， especially consumption growth has been increasing.

To observe the total， China's manufacturing capacity to enhance the speed significantly higher than the rate of increase of global consumption， external demand will certainly continue to fall role in boosting China's economy has. Meanwhile， the Western developed countries， the implementation of remanufacturing as well as emerging economies increasingly committed to the implementation of export-oriented strategy， which greatly squeezed to our global market amount. Domestic factors of production price increase will also reduce the country's global competitiveness. After entering into the new normal economy， in order to better maintain high-speed growth， China's economy is bound to rely more on domestic demand to enhance the promotion. As China and Western countries continue to narrow the economic level， reducing the speed of technological advances in reducing the marginal benefit of capital will lead to decreased ability to hedge， thus promoting investment income continue to reduce the growth rate of investment will continue to decrease， while consumption relative position in domestic demand will continue to enhance the promotion of the middle class and middle-class people to enhance the consumer continues to expand， the growth of the economy will play a greater and greater force.

（3） share and contribute to the growth of the service sector in GDP among rising.

In view of the continued slowdown in the total expansion rate， more and more manufacturers will permeabilities development from the beginning and the development of key production services to enhance the competitiveness and profitability of the economy. Only in the urban and rural masses effectively meet the food， clothing， shelter， after the various needs of the line， all kinds of high-end type of life services demand cultural industry， entertainment industry， health and leisure industries for more and more bound to release， thereby lead to continued opening up of the service industry， not only to the promotion of domestic services， and the gradual maturity of the business model and the development， but also to promote our country to further develop the advantages of human capital， and thus to undertake more and more outsourced business.

（4） the operation of macroeconomic stability is quite high.

Compared with the investment， consumption growth is quite stable， and increase the consumption share will increase in the course of running into macroeconomic stability. Because the service industry production chain is very short， intermediate inputs caused by fluctuations in demand products appear large fluctuations in the degree of decline， most of the service sector consumption should be timely， so as to help stabilize fluctuations in production systems.

2. Challenges Of Chinese Economy Under The New Normal

（1） considerable risks and hazards in finance.

In the past， economic development and ascent， the demand of the whole society will continue to enhance its natural asset prices will increase rapidly. Under extensive economic model in the traditional sense， the market economy has inherent contradictions and their internal potential risks is not easy to see. However， once the economy has entered into a new norm among the overall speed increase of China's economy produced a decline in the number， and reasonable economic growth has entered a period of adjustment and optimization， gradually revealing the inherent risk under today's market economy come out. Ultimately， upgrade the root causes of the above contradiction is formed due to the potential risks for the financial loss of power and control policies appear， so that would be an obstacle to the smooth development of the economy.

（2） the problem will produce macroeconomic imbalances， so that it will affect the long-term economic development.

Economic development in China has entered a new normal in the new situation， China's economic structure has entered a period of adjustment， macroeconomic operating environment there is a clear change. However， once the difficulty of macro-control has increased， if regulatory policy can not be put in place， there will be an imbalance because the regulation affects the long-term stable development of the economy.

（3） achieve great difficulty stable society.

Social stability can be said to be an important foundation for promoting long-term sustainable economic development. At the beginning of the development of socialism， it should be to address the fundamental issues as the main body， so as to better alleviate the social contradictions. However， in view of the further development of socialism with Chinese characteristics economy， people's living standards have continued to improve， so to will the political， legal and social so new and higher requirements， these contradictions and problems resolved will directly affect the stability of society， the long run will affect our economy better and faster development.

3. Adjustment Strategy Under Chinese Macro-control Policies

（1） Economic growth target move from pursuing speed to be varied focus on quality

After Chinese economy come into the new normal， to enhance the economy began to enter into a new stage of the pursuit of quality， quantity inherent to the use of expansion can not continue the way down. From the current development goals to consider， we are entering our country to the level of income from a middle to high income levels to promote an important period of economic growth in the resistance encountered by the continuous improvement of the economic and social development goals become more comprehensive and pluralistic of. On the Settings economic development objectives should be the transition from quantity to quality. Today， China's economy is moving to a new normal development， but economic development have been a lot of good signs. First， China's economic impact for downstream employment generated enough significant. Given the continuing changes in the structure of China's population， the total amount of additional pressure on the labor force has decreased significantly. Second， the effectiveness of various types of basic indicators remain stable. Previous overall efficiency indicators having high elasticity characteristics， that is， once the higher growth rate， which will benefit the better； if the growth rate down， then efficiency index usually appears a greater decline. However， on the basis of industrial production slowed significantly on the effectiveness of the index remains substantially stable. Third， prices should remain steady run， CPI growth will generally remain above 2%. Fourth， increase the speed of people's income urban and rural residents will be higher than the increase in GDP. In addition to growth has downward outside the economy in general， more stable operation. Entering into a new economy under normal， functioning reasonably clear economic growth must be more and more-effective use of indexes， only employment， income and corporate profits can effectively maintain a reasonable increase， the price can be maintained in a stable state ， as long as the risks will not be cumulative， it can be considered in the above potential growth level.

（2） According to the reforms to stimulate the vitality of the market to enhance growth

First， based on the reforms to stimulate the vitality of the market as well as endogenous motivation. Today， China has abundant private capital as well as the high quality of human resources advantages， especially the potential for private investment and entrepreneurship is very large， the initiative is very high， even more important to use the potential for the release of the creation of the Reform better conditions. To effectively deepen the comprehensive reform of monopoly industries as well as national economic sectors， effectively breaking field inherent fact of having administrative monopoly and state-owned monopoly， resulting in more and more areas were among the competition in the market， so the development of China's private capital provide more room for development. Meanwhile， we must continue to promote streamline administration and decentralization of government departments， it is not effective in reducing all kinds of necessary that part of the administrative examination and approval， and then be a greater rationality to investment and entrepreneurship. The third is to better clean up and inspection fees and other business activities， thereby enhancing transparency and scientific， effectively reduce the discretion of the government has， so that it is possible for the development of enterprises create a more favorable environment for development .

The second is the creation of an innovative environment. Not only in-depth study of continuous improvement and the use of government funds to support research and development of methods and ways to improve the effectiveness of the use of funds， but should also continue to improve the protection of intellectual property has the strength to truly respect highly effective social legal knowledge and talent situations， but also for the majority of enterprises should create a fair and just competition environment from the introduction of technical standards and national industrial policy and other aspects.

Third， the implementation of more stringent environmental， quality and social security regulations. The use of environmental， quality and safety standards to develop technical social regulation， thereby effectively protect the interests of the majority of the public， not only is the main duty of the government， but also an important channel to promote the transformation and upgrading of related industries. Face various problems existing in the current phase requires not only the relevant government departments in accordance with the desired situation， completely revised and perfect the relevant technical standards. On this basis， we should further improve the local governments and their cadre appraisal system and improve law enforcement efforts and， thus， the transformation Forced system.

（3） Focusing on demand management and supply management of the full application

To fully highlight the important role of demand and supply management in the process of macro-control. Under the new normal economy， structural imbalances have become an obstacle to further economic development of the major bottlenecks. Today， our economy is the presence of the principal contradiction in the medium and long term future of long-term slowdown problems. The focus of macro-control should be gathered to supply management. To relax using birth control， deepen the reform of the household registration system， to reduce capital and financial controls， improve the structure of property rights to land and resources have to promote the state-owned enterprise reform and other initiatives， the potential to enhance the chances of a long economic growth has. On fiscal policy should continue to enhance efforts to implement the various tax aspects of the policy， to enhance the rate of fiscal deficit， and reasonably necessary lift fiscal spending and government investment on the basis of tax cuts to make up with the resulting financial implications Save income， and ensure responsible government should bear up expenses and the like. On the monetary policy should be flexible but moderately， by financing costs continued to control and improve the ratio of direct financing， reform of the credit structure， improve the exchange rate formation system， so as to promote the development of modern agriculture and service industries. To continue to promote the reform measures to the floor， to ensure the good control reform pilot. To effectively hold the bottom line of the development of people's livelihood， so as to better play an important role in the social security and social stability have. To implement the removal of production capacity， reduce inventory， lower costs， and make up the short board， and other work. To be more proactive in resolving out excess capacity， tighter control over the corresponding increment in order to prevent the emergence of new overcapacity situation. To vigorously helps customers control costs， and effectively reduce the cost of the real economy enterprises， continue to reduce the tax burden on enterprises in terms of effectively reducing the cost of logistics. Effectively prevent and resolve all types of financial risk， systemic and go all out to hold the bottom line of regional risks.

（4） continuously improve the social security mechanism for the creation of conditions of economic development

After China has entered a new normal economy， industrial transformation and upgrading process， will surely involve some of the laid-off workers and re-arranged questions and reveal all the details of social policy is an important guarantee for the transformation and upgrading can be fully implemented. To do this， first of all should continue to improve and perfect the social security mechanism， so as to adjust the industrial structure among the companies due to the exit to provide a reasonable living allowance for laid-off persons. The second is to continue and improve staff training mechanism， so as to achieve the majority of laid-off workers re-employment reorientation provide real help. Again is to honestly solve SOE reform is not complete problems， especially state-owned enterprises to continue to clean up the problems do exist in society， so as to enterprises lightly armed participate in the competition increasingly fierce market competition among the creation of a favorable condition. To continue to improve and perfect the social security mechanism， so to speed up the flow of labor to promote and improve the effectiveness of resource allocation. Of course， the new normal economy more dependent on innovation and improve the competitiveness of business， so to be able to effectively reduce the risk of business failure caused.

（5） Implementation of industrial policy shift from functional selectivity

The focus of China's industrial policies from selecting the relevant industries to cultivate a functional market. All along， our country belongs to the selective implementation of the industrial policy， based on investment approval， corporate subsidies and other measures related to a wide range of micro-economic intervention. Although this can play an important function to enhance the economy， but also changed the mechanism of the market. Future means of industrial policy should be from direct intervention in microeconomic steering actively cultivate functional behavior. Although there are still significant subsidies and tax incentives and other aspects of policy support， but support is often the object of cutting-edge technology as well as public infrastructure technology， and focus on research and development as well as technical standards and the simultaneous development of market cultivation， most of the application rather than the prior subsidies Later reward， subsidies in general is not the size， the more important is to play important leading role. Therefore， we must continue the reform process of the elements of the market， we continued to improve elements of the market system. Through ecological improvement and innovation， improve the innovative drive system， and promote China's state-owned economy from the emphasis on the chemical industry and turned to focus on high-end and other public services with operations also gathered from monopolies to natural monopoly industries. Put more state-owned capital to serve the emerging manufacturing， all the way along the collar and other development-related strategies infrastructure. Industrialization should use to create the core competence of our country should be emphasized among its national economic system has the innovative drive functions， from the development of standardization and modularity to the direction of integration into the transformation and upgrading. Services sector should effectively break the monopoly of all types and market regulation， and actively take effective measures to solve the problem on the system and mechanism， inspired role in promoting services for China's economic development.

4. Conclusion

In summary， the development of China's economy entered a new macro-control policies appear normal under a very big change， resulting in a totally different and new characteristics， which the future economic development of China has brought a new revelation. The first is the microcosmic， the business environment is bound to increasingly standardized and relaxed. Followed by the macro-control policy will have continuity and stability， will not be as large-scale economic development cycle against a strong stimulus as in the past， companies would no longer be thought to be more accommodative monetary policy， while is to more and more attention and energy into innovation among primarily covers the content of technological innovation and service innovation. Finally， no longer through the housing， stocks and speculation in mineral resources such as the implementation of profiteering， but rather to invest more effort to innovation in order to get into profit. Under the previous loose monetary environment that is often used for currency speculation to the pursuit of more profit， resulting in a lot of rise in prices of some commodities and lead to price spikes that spawned the speculative mentality， but under the new economic environment of the normal no longer exists， which requires economic actors to completely abandon speculation， really establish a legitimate， new development concept of compliance management.