Ge Honglin, Member of the Standing Committee of the CPPCC National Committee: Beware of the “de-Chineseization” of the global industrial chain after the epidemic
“It cannot be naive to believe that the achievements of China’s national defense epidemic control and rapid resumption of production will lead to the shift of the center of the world’s industrial chain to China.It should be rationally realized that after the epidemic, and after painstaking thoughts on various industrial chains at the same time, they will quickly improve and perfect their respective or regional complete industrial chains, and some even reshape ‘desinicization’.Ge Honglin, former member of the National Committee of the Chinese People’s Political Consultative Conference and former chairman of the Aluminum Corporation of China, accepted an interview with Sauna and Yewang recently and expressed his views on the changes in the global industrial chain after the epidemic.He believes that after the epidemic, we should accelerate the formation of four regionally complete industrial chain centers with global competitiveness through regional vertical integration.Ge Honglin also said that at present, governments of various countries have released a variety of resources to accelerate injection into the market, but there are many uncertain markets that can accept and meet the needs of returns. However, China ‘s continuous achievements in epidemic prevention and control and resumption of production will have obviousThe comparative advantage of low investment risk and high return rate is expected to become the preferred market.He suggested, “As we look forward to the inflow of overseas funds into the Chinese stock market, it is better to guide the inflow of overseas funds into China’s real economy.Ge Honglin, member of the Standing Committee of the Chinese People’s Political Consultative Conference and former chairman of the Aluminum Corporation of China.”We are gradually improving and perfecting our respective or regional complete industrial chains” Sauna Yewang: How do you view the impact of the epidemic on the global industrial chain?Ge Honglin: The sudden epidemic will have a major impact on the reshaping of the world industrial chain. However, it cannot be naive to believe that the epidemic situation of China ‘s national defense and rapid resumption of production will lead to the shift of the center of the world industrial chain to China.However, it should be rationally recognized that after the epidemic, after global painstaking efforts on various industrial chains, they will quickly restore and improve their respective or regional complete industrial chains, forming a center of competition, and some even reshaping “desinicization”.In the previous period, the epidemic has not yet experienced a large-scale outbreak in the United States. A US minister told the media that the new coronavirus outbreak in China will prompt the manufacturing industry to speed up the refund of the United States.What’s more, the current epidemic has severely impacted the US economy, and it is not difficult to imagine that their sense of return will be even stronger.We must be fully ideologically prepared, and we must never assume that foreign resources will be centered on China and flood in one after another.From the perspective of the global economic development, the formation of multiple complete industrial chain centers is the objective development trend in the future, not based on our will. We both follow the trend and actively participate, including encouraging progressive enterprises to “go out”Participate and stick to the initiative.Sauna Night: How to deal with the impact of the epidemic in China’s industrial chain?Ge Honglin: The core of the current stabilization of China’s economic growth fundamentals is to stabilize the industrial chain.Once the industrial chain is impacted, it will take a long time to recover and it will be expensive. It will even affect the fundamentals of economic development.At present, the pace of resuming production and production has been continuously accelerated, but resuming production has not reached production. Among them, the capital chain and supply chain are still not smooth, and some focus problems have shifted. New problems need to be resolved in a timely manner according to new situations.For example, the focus of the enterprise capital chain has gradually shifted to the settlement of funds by upstream and downstream companies. The upstream companies have continuously accumulated inventory and continue to increase funds. Downstream companies cannot afford to pay upstream companies because of reduced funds, and even have their own resumption of production.It also affects the resumption of production and production of upstream enterprises.I think that it is difficult to resolve this contradiction by the efforts of enterprises alone. The role of industry associations through financial institutions, especially those directly managed by the SASAC of the State Council, can be effectively and effectively alleviated.Financial institutions make full use of the influence, credibility and coordination of industry associations. In current emergencies, they transfer and entrust industry associations, recommend upstream enterprise lists, and propose downstream enterprises based on their long-term performance and credit.According to the two lists, financial institutions organize industry associations, connect upstream and downstream enterprises, mature mergers, lend funds, and designate downstream enterprises to purchase recommended upstream enterprise raw materials or intermediate products, thereby helping the real economy to flow more accuratelyThe capital chain of upstream and downstream enterprises eases the current product backlog of upstream enterprises and the overlapping of downstream funds.As another example, the focus of the smooth supply chain has shifted to the distribution of benefits between logistics companies and cargo owners.Although the state has introduced preferential policies to reduce tolls such as toll road vehicle tolls to reduce logistics costs, many policies are obliterated in the price competition between logistics companies and entrusted companies.In my opinion, the preferential policies granted by the state to logistics enterprises should in principle be enjoyed by logistics enterprises, and should not be a reason for price reduction by cargo owners. They should not be allowed to compete on price competition between logistics enterprises and cargo owners. They should try their best to keep logistics transportation prices reasonableThe price of the level is appropriate.Relevant state departments should intervene on the current logistics price guidance, and should issue guidance prices as soon as possible to stabilize the supply chain and smooth the supply chain through price stabilization.Otherwise, in the near future, once the preferential policies such as exemption are cancelled, the logistics price will undergo another change and will face difficulties for another period.For the layout of the domestic industrial chain, it is also possible to form multiple regionalized and basically complete industrial chain centers instead of one.We must not rely on certain regions in China to form the only complete industrial chain center in the country.However, the construction of multiple centers is by no means a repetitive construction in the past. It not only prevents industry chain risks, but also promotes regional industry chain competition, and develops through regional competition.We must seize another period of strategic opportunity for the reshaping of the global industrial chain after the epidemic, taking the lead in the Guangdong-Hong Kong-Macao Greater Bay Area, the Yangtze River Delta, Beijing-Tianjin-Hebei, Chengdu-Chongqing Shuangcheng Economic Circle and other regions, closely following the country’s nine strategicEmerging industries, through the vertical integration of regions, accelerate the formation of four regional complete industrial chain centers with global competitiveness.”Appropriately guide overseas funds into the real economy in an orderly manner” Sauna Yewang: Some people believe that China will become a safe haven for the current round of global funds by transforming China’s epidemic situation and effectively controlling it.What do you think?Ge Honglin: In the face of the current epidemic, governments in various countries have adopted many financial policies to save the market, including the United States, launched crisis toolkits, and have released a variety of resources to quickly inject (funds) into the market.It is foreseeable that a considerable amount of capital will enter the global market and seek higher returns.However, from a global perspective, there are many uncertain markets that can absorb and satisfy returns. The continuous prevention and control of epidemic disease and the benefits of resumption of production in China will have obvious investment risks and a comparative advantage with a high rate of return.Some people think that such capital inflows will cause China’s stock market to gain more attention from international capital, which will bring international financial support to the development of China’s listed companies and be more conducive to listed companies.In my opinion, as we look forward to the inflow of overseas funds to the Chinese stock market, it is better to guide the inflow of overseas funds into China’s real economy.Undoubtedly, investing 10 billion yuan in the stock market and expanding 10 billion yuan in the manufacturing industry has a far greater effect than the former.Sauna Night Net: How to guide the inflow of overseas capital into the real economy?Ge Honglin: It is a difficult problem to guide the inflow of funds into the real economy, which is a severe test for the existing government investment attraction work.We need to formulate proactive policies to create more effective models; maintain a more tenacious concentration, and encourage physical enterprises to attract more foreign investors through new paths of innovation and mixed reform.It is necessary to improve the list of the real economy as soon as possible and attract more global industry chain-related enterprises to settle in China, especially in the Guangdong-Hong Kong-Macao Greater Bay Area, Beijing-Tianjin-Hebei, Yangtze River Delta, Chengdu-Chongqing Shuangcheng Economic Circle, and speed up the “investment supplement chain”Through the construction of developed industries, we will move towards the construction of industrial chain regional centers.Sauna, Ye Wang Hou Runfang Editor Zhao Ze proofreading Li Shihui