Zheng Zhijie: Respect the market and improve the role of government
Excerpts from Zheng Zhijie's presentation at “Collapse and Rebirth” – IFENG Finance 9th Summit, translated by ACCEPT
In his remarks at the IFENG Finance 9th Summit, Zheng Zhijie, Former President of the China Development Bank, pointed out that the 14th Five-Year Plan period is a critical time for China to overcome the middle-income trap. To make full use of this decisive time, the first priority is to comprehensively deepen reforms to promote better integration of effective markets and capable governments.
According to Zheng, most countries that have fallen into the middle-income trap throughout history did not manage their government-market relationships well. China should learn from the lessons of these countries, and through the comprehensive deepening of reforms, fully utilize and combine the advantages of the government and the market.
In this regard, Zheng further stated that on the one hand, China should create a fair and competitive market environment to stimulate all kinds of market players, thus giving full play to the decisive role of the market in resource allocation. On the other hand, China should improve the role of the government, clarify the boundaries of government actions, and use the advantages of government organization and coordination to promote the construction of the market and make up for market failures, all on the basis of respecting the laws of the market.