Current domestic and international economic situation and supply-side structural reform

In order to let the vast number of abrasives and abrasives enterprises further understand and grasp the current domestic and international economic situation, understand the connotation of the supply-side structural reform proposed by the state, and promote the transformation, upgrading and innovation of the enterprise, the Abrasives and Abrasives Branch invited the Institute of Economics of the Chinese Academy of Social Sciences. Chang, "Editor of Economic Research", famous economist Dr. Yan Changhong made "The current domestic and international economic situation and supply side structure" in the 2016 National Abrasives Industry Information Exchange and the 64th China Corundum Silicon Carbide Fair. Special report on sexual reform. The following content is organized according to live recordings.         Abrasives and abrasives are a highly professional industry. Next, I will analyze the current domestic and international economic situation and the supply-side structural reforms that the country is now pursuing for your reference.

The world economy is climbing hard
        First of all, we talk about the world economy. Everyone knows that we have just opened the G20 summit in Hangzhou not long ago. The world's 20 largest economies have held a summit every year since 2009. China is the chairman of this year. This is a very important dialogue platform that proposes solutions for the current world economy. The current world economy is very weak after the international financial crisis. In recent years, especially in the past two or three years, the economic situation is not optimistic. This year's world economic growth can only be similar to last year's forecast according to international organizations. According to the International Monetary Fund, it is 3.1. %. International Monetary Fund President Lagarde said that the world economy is in a new and mediocre growth. If the Brexit event continues to ferment, the growth rate may also decrease. In addition to the International Monetary Fund, international authorities such as the World Bank also believe that the world economy this year is the same as last year. The forecast for the Chinese economy has not changed. It is still quite confident, but the forecasts for other countries and regions have changed. It will be lower again. Because China’s target for this year is 6.5 to 7%, China’s economy grew by 6.7% in the first half of the year, and the world ranked second (India is higher than us), so although everyone feels that the situation is not good, we are not bad at the international level. .
        The three largest economies in the United States, the Eurozone, and Japan are all slightly better in the first quarter of this year, and they are no longer in the second quarter. The United States increased by 1.6% in the first quarter at an annualized rate, but fell to 1.2% in the second quarter. The euro zone is slightly better. This is slightly better based on the low base in the past (usually a few percentage points in the past). It was hard to reach 1.7% in the first quarter of this year and 1.6% in the second quarter. Japan is even worse, and Japan’s first quarter growth 1.2% fell to 0.2% in the second quarter; emerging economies, including China, have an average annual growth rate of 5.5% over the past decade, and accounted for 75% of the world economic growth after the international financial crisis, only China It has contributed 26%, but international organizations predict that the economic growth rate of emerging economies in the next decade will also drop below 5.5%, so now from the world, the economic recovery is in a difficult climb process. . The international oil price is now basically staying at around US$45 in a barrel. At the highest point in 2014, it reached US$115, indicating that the world has little demand for oil and energy. Of course, how to set the price of oil is complicated. Economic vitality, in addition to political factors, regional security factors, such as the United States, Russia on the Ukrainian issue, the Middle East issue and many other issues of conflicts and conflicts affect international oil prices. Of course, the price of oil also depends on other influences such as the US dollar exchange rate. The Fed added a single interest rate in December last year, and it will not be able to raise interest rates for the second time due to internal differences in September this year. Nowadays, the countries in the world, whether developed or developing, the basic measures for maintaining the economy are loose fiscal and monetary policies, and the government spends a lot of money and borrows. There are six central banks in the world that are implementing negative interest rate policies, such as the European Central Bank and the Bank of Japan. This means that if a commercial bank wants to deposit money in the central bank, you have to give me money. This negative interest rate policy has been around the world. Very popular, the general hope is to spend money, do not want you to save money. Eventually, the global debt ratio continues to rise. Whether it is developed or developing countries, public debt is now rising all the way.
        International trade, in the past, international trade was called the engine and locomotive of economic growth, but it has not been done for a few years. In recent years, the increase in international trade has been lower than the increase in world GDP. There are two kinds of calculations for international trade. One is calculated by quantity, such as how many tons, how many barrels, and how many containers. This quantity is still growing; but the amount of money in a barrel is reduced. Last year, the world’s dollar-denominated trade volume declined, and it fell by double digits. Last year, China’s foreign trade also fell by 7%, and it began to recover in August this year. This situation is the first time since World War II that such a negative increase in the amount of international trade (calculated every decade), the growth of trade volume is lower than the growth of the world economy. International trade has stalled as an engine of the economy.
        The flow of international capital is also very unsatisfactory. From the years after the international financial crisis, the flow of international capital was basically negative growth. Last year, there was a rebound. However, last year's rebound in foreign capital was mainly engaged in mergers and acquisitions, not greenfield investment. Greenfield investment means that there is no enterprise in this place. Now it has invested in new investment, which has increased production and business activities. But the actual situation is not the case, but this place has a business, bought its assets, bought shares, bought it. After that, its production and management may not increase, and it may maintain the status quo. However, the ownership structure has changed, the financial situation has changed, and even the production and operation may be reduced. Because foreign mergers and acquisitions are likely to make you not produce and produce less, so its operation Activities, employment, and taxes do not necessarily increase. In the past two or three years, there has been such a situation in foreign capital, which also reflects the phenomenon of overcapacity in the world. Multinational companies do not know what to vote for in their hands. Therefore, it appears to be maintained through capital market operations.
        In general, the current world economy is in the midst of a difficult climb, and China's economic growth rate is relatively good compared with neighboring countries and most of the world's economies. At this G20 summit, President Xi Jinping issued a Chinese prescription for the development of the world economy, and offered to liberalize trade and investment, infrastructure construction, and green finance as major issues. Regarding the development of the world economy, President Xi proposed: The first is to establish an innovative world economy. Now that the global economy is not good, what about the future? The future depends mainly on innovation. Countries around the world rely on money as a way to rely on technological innovation and innovation in business models. The second is to establish an open world economy. The world should not engage in protectionism in trade and investment. In the current situation, it is necessary to expand openness and open up to each other. Especially in countries like China, industrial production capacity is very large. In fact, many countries in the world need our excess capacity. However, industrialization in many places has just started. As Africa needs industrialization, but how these funds, technologies and personnel go in, it needs to be open. Countries need to develop open measures, including infrastructure, especially in developing countries. Establish an open economic system; the third is to establish a linked world economy. The so-called linked world economy is that everyone is in step, don't make a set of things, I do a set, of course, just a suggestion, whether people can listen or not, because the G20 is only a platform for dialogue among leaders of various countries. There is no legal binding, but it must require countries to coordinate policies and linkages; the fourth is to build an inclusive world economy. The meaning is to be mutually beneficial and win-win, not to be a neighbor, but to show that your own life is better, no matter others, tolerate poor and rich countries, the poor and the rich, can benefit from economic development, can have a sense of gain, so the world economy Will be sustainable. Brexit is because some British people feel that they have not benefited from joining the EU. Because Britain will accept refugees and accept labor mobility after joining the European Union, some jobs will be occupied by foreigners. There are many people from Central and Eastern Europe to the UK. Many of these people are willing to go to low-end positions, such as sanitation and other service labor, so these jobs are occupied by outsiders, and local people feel that their wages are falling and they have fewer jobs, so they feel that Joining the EU has no advantage, and it has set off a wave of Brexit in the country. But the problem is that the world economy is already interconnected, so it needs a question of mutual tolerance. How to solve it becomes an important issue for governments to coordinate policies. On the G20, the Chinese government's prescription for the world economy will not work, and we must continue to observe.

China's economy is mixed and stable
        In terms of the domestic economy, from the situation in the first eight months, there are both joys and sorrows. First of all, the main reason is that the growth rate of investment continues to decline, because in our economic growth of the troika, investment is the fastest. However, from the situation in the first eight months, the growth rate of investment is continuing to decline. In particular, the decline in private investment is faster. The growth rate of national investment has gradually declined from the double digits of last year to the current one. 1~ In August, it was 8.1%; private investment has fallen from a cliff this year, and its growth rate was only 2.1% from January to August, and there was almost no growth compared with last year. Now the growth rate of the entire investment is mainly maintained by the country's infrastructure investment, because the country's infrastructure investment has many projects, and it is easier to control, which supports the growth of the entire investment; real estate investment has only rebounded slightly, this year's Real estate is very special. From the investment situation, it is not high. The growth rate is only 5.4%. It was very low last year. In the first five months of this year, it jumped to 7.0%. In the second quarter, there was some stability, because all localities Some control measures have been taken. Although the investment is reduced, the land price is rising, because the investment to reduce the land purchase is also less, the investment in land purchase is also falling, but the land area is falling, and the investment funds are rising, which indicates that the real estate investment rate is not fast this year, but Land prices have risen relatively high. In addition, the sales area of ​​real estate enterprises has increased substantially. According to the survey data of the National Bureau of Statistics in 70 large and medium-sized cities across the country, sales in January-April increased by 55.9%. Real estate development enterprises have good funds in place this year. Although the area of ​​land purchase is decreasing, the capital supply rate of housing enterprises is very high, and the growth rate is very fast, from less than 1% last year to more than ten percentage points this year. This is a new phenomenon in the investment field and a relatively tangled problem in the investment field.
        Better is the consumption of goods, because the economic growth of the troika is a basic car is consumption, consumption includes commodity consumption (eat, wear, live, travel, etc.) and service consumption (communication, education, health, medical, etc.) In part, in the expenses of each family in China, most of the current consumption is still commodity consumption, but the main part of household spending in Western countries is service consumption, and we will become like this in the future. It is not yet, so commodity consumption is still very important for our economic pull. Commodity consumption is called the total retail sales of social consumer goods in the statistical indicators of the National Bureau of Statistics. Its growth rate is very stable, indicating that the society is stable overall. Although the economy is going down, investment is declining, but what should the people buy? How do you live, how to live, and the growth rate of buying things every year is in double digits, which is not found in the world. With a speed increase of around 10%, this is considered to be an important basis for the stable operation of the economy. In particular, online shopping and e-commerce are double-digit growth, but now Alibaba and Jingdong are basically called grocery stores, mainly selling consumer goods. In fact, raw materials and semi-finished products required by various manufacturers also need e-commerce. There are online transactions, so e-commerce not only needs Alibaba, Jingdong and other platforms, but actually needs a professional platform. Our abrasives industry also needs a national platform to realize online transactions and online settlement.
        Import and export trade is still falling. It is still negative growth in August, and it is estimated that it will turn positive in the next few months, because it was -7% last year and -1.8% in January-August this year. That is to say, the demand of the whole world is insufficient, and the international environment is not very good. Therefore, there is not much space for exporting by large quantities, especially the mechanical and electrical products in the export. Of course, in the future, with the construction of the Belt and Road, the products of the electric power industry and the machinery industry may go out. Of course, this requires hard work. It cannot be said that there is absolutely no, but there is no demand in the current situation.
        In August, industrial production was basically stabilized, and the growth rate of industrial added value above designated size was 6%. Within industrial enterprises, according to the type of economy, joint-stock enterprises and foreign-invested enterprises have a relatively good growth rate, and state-owned and state-controlled enterprises have grown slowly. In various industries, cars, electrical machinery, equipment manufacturing, computers, communications and electronic equipment are growing rapidly. It is also growing fast and slow in different industrial sectors.
        The profits of industrial enterprises have greatly improved compared with last year. Last year, the main business and profits of industrial enterprises above designated size were -1% and -2% respectively, and this year they have rebounded. According to statistics, in July, the national industrial enterprises above designated size Profits increased by 6.9% year-on-year.
        From the perspective of price, first of all, the national consumer price index CPI fell slightly, and by August this year, it increased by 1.3%. This indicator is not high. If it is higher than 3%, the price of consumer goods is rising. This price index is too low. It is not good, too low, the producers are not motivated. Now look at this index is too low, this indicator mainly refers to the field of eating, wearing and using. The National Bureau of Statistics also has an indicator called the industrial producer's ex-factory price index PPI, which has been negative for the past few years. It has been narrowed in August this year, and the intensity is relatively large. This is a good signal. However, the negative growth in the purchase price of industrial products is not too strong, staying at -1.7%. Industrial products are divided into production materials and living materials. The ex-factory price of production materials is narrower than the living materials.
        The biggest feature of the price this year is that house prices have risen. From December last year or even earlier, according to statistics from the National Bureau of Statistics, house prices in 100 cities nationwide have basically risen. By August this year, house prices have risen by a considerable margin. high. Now the real estate market has the following outstanding features: First, the first line and the second line are very hot, the third line and the fourth line are very cold, and the second is that investment has not increased, land prices are rising, sales are increasing, and house prices are rising. Real estate involves all walks of life. For example, the state is taking measures to tighten monetary policy. The purpose is to curb the rise in housing prices, but it will have a significant impact on the abrasives industry. It will be more difficult for companies to find funds and find loans. Therefore, it is necessary to pay attention to the country's policy information, and what policies will be adopted for the funds. For example, it is intended to raise interest rates and further increase the deposit reserve ratio. Because it has been reduced several times, if it is necessary to mention the possibility of receiving the money, the cash register. As a result, it is not always possible to control real estate, but it will definitely make the entity unable to stand it.
        Judging from the general situation of the society, employment is still stable and the unemployment rate is not high. This is also a relatively good phenomenon. Although investment is declining and house prices are rising, there is no social unrest and no mass incidents. The unemployment rate survey is divided into two sets. One is the urban registered unemployment rate. This is only for the registered population. This unemployment rate is very low, generally 4.1 to 4.2%, and it has remained for many years and remains basically unchanged. General government agencies and scientific research units have opinions on this set of statistics and believe that they are not allowed to reflect the real situation of the society. Later, the National Bureau of Statistics also conducted a set of statistics. This is called the investigation of the unemployment rate. This includes not only the registered population, but also the resident population. It is currently in the 30 large and medium-sized cities across the country, but this statistical result. It is not announced regularly, it is not announced regularly, and 2014 is the first announcement. Although the unemployment rate in the first eight months of 2016 was slightly rebounded, it was generally stable. From the data, it is still around 5.1%. 5.1% is a very good figure. Now there are not many countries and regions in the world that can achieve this level, including China, South Korea, Japan, the United States, Singapore, and possibly our Taiwan, like the EU is 10%. Above, the outstanding countries like Germany are also 7~8%. The unemployment rate in Latin America and Africa is usually 10% or 20%, and the unemployment rate is very high. Therefore, our social employment situation is very stable. Of course, on the one hand, there are reasons for changes in our demographic structure. The number of working-age people aged 16-59 has decreased by about 3 to 4 million per year in recent years, and the employment pressure itself is decreasing. In recent years, China's economic structure has changed to a service industry. The service industry has a good elasticity of absorbing employment. It is better than industry. It can use more labor. In recent years, the investment and added value of the service industry have grown faster than industrial growth. The trend of labor in the industrial sector is getting less and less. In the future, the industry will have less information after using information and intelligence. It is estimated that the abrasives industry is the trend. The level of refinement and precision required by you is high. That is, intelligence and the popularization of robots will have a greater demand, so the labor force is shifting to the service industry.
        Judging from the situation of financial currency, the basic situation of the country in terms of monetary policy from January to August this year is stable, neither high nor low, but where is the money going in this situation? I went to the mortgage loan of the residents. The country’s monetary policy is not too loose. The broad money growth rate M2 is 9.8%. The country’s target set this year is 13%. If it is 13%, the house price may be higher now. However, at present, the funds are going to the real estate sector. The growth rate of investment and development is not fast, but the money for buying land has increased, and the sales of commercial housing have risen sharply. The money comes from residential mortgage loans. Resident mortgage loans are a prominent feature in this year's credit. This has an impact on various industries.
        The financial revenue and expenditure pressure is also great. This has something to do with all of us, because this year we are implementing a reform of the battalion in the financial sector. This is good for service-oriented enterprises. After the business tax is changed to value-added tax, the state’s tax revenue has been reduced since June, and the previous months have been Very high, because the business tax is a local tax, the value-added tax is the national tax, our tax is the national tax and the local tax at the same time, at the same time, the business tax should be changed to the national tax, the local tax will be collected, the tax will go up, after June When the national tax is transferred, the tax will be reduced. From January to August, the national general public budget revenue grew by only 6% year-on-year, lower than the GDP growth, and the country's tax revenue is decreasing. This year, the country thinks so. This year, it will reduce taxes, and the gap is about two trillion yuan. The deficit budget, the issuance of national debt, including the national debt issued by the local government. The increase in the camp has also reduced administrative fees and issued a debt subsidy of 500 billion yuan. It is reasonable to say that 500 billion should use these companies. The expenditure is still increasing in this respect, so the contradiction between fiscal revenue and expenditure is still very prominent. China’s deficit and debt are the lowest in the world. This is valid. In addition, the entire fiscal to debt situation of our country is the easiest in the world. This has a lot to do with the political system of our country. In addition, China's economic system is also very different from that of foreign countries. China's basic economic system is based on public ownership and the development of multiple ownership economies. This sentence is not empty. It is a very real sentence. "Real" has a large amount of assets in the hands of the government, including operating assets and non-operating assets. This is different from Western countries, such as the Federal Reserve, the British Central Bank, etc. are not national, and even the US prisons are privately built, not to mention railways and airlines. China’s national assets are far greater than debts. There is no government bankruptcy. Every bank in our country cannot make every bank, so don’t worry, so everyone should not think that the economic situation is very problematic. There is a little worry, but don't worry too much. The country can't stop it. This is a bottom line. Of course, the unevenness of the bitterness in various industries is certain. What about the unevenness of bitterness? This is a problem that the country is currently trying to solve.

Supply side structural reform
        Now, the party Central Committee and the State Council have called for a supply-side structural reform. Of course, there is also a saying that moderate expansion of demand means that monetary policy and fiscal policy means are still used. Water cannot be put at all, but it must be put. It is very moderate, and it is very knowledgeable until it is appropriate. It depends on how the NDRC, the Central People's Bank, and the Ministry of Finance did it. At present, from the government to the enterprise, it is the supply-side structural reform. This is something we have to consider a lot. So what is the supply-side structural reform? What problem is it going to solve? Including the following aspects:
        First, China's demand structure has changed a lot in recent years. In the past, our entire society's needs were mass-type, wave-type consumption, saying that buying a car, buying a house, buying a mobile phone, buying a computer, and buying it all, this situation has changed since the purchase of a house has changed. The current consumption is diversified. Differentiated and personalized, there is not much to buy one or two, or it is outdated. Second, the structure of consumption is upgrading. In terms of daily consumption, more and more people want to buy things with better quality and higher grades. In the past, ordinary people bought big road goods, but they didn’t buy as many people as they used to. Now some Chinese people are going to I went overseas to buy rice cookers and toilet lids, so I said that the consumption structure and demand structure of the Chinese people are upgrading. Third, service consumption has increased significantly in the proportion of consumption. We are still mainly buying things, supplemented by service consumption, but in developed countries, service consumption is the main factor, and commodity consumption is supplemented. Everyone can look at their own household accounts. Compared with previous years, the amount of income used for food and clothing is growing, but the proportion is decreasing. The proportion that is rising is the communication fee, and the education is also There is tourism, and now the Chinese have money, and the proportion of domestic tourism and overseas travel in household consumption has also increased. So what are we missing now? What is lacking is public goods and public services. It consists of two major categories. One is called the municipality of transportation, communication, hydropower, gas and heat in the city. There is also a class called science, education, culture and health. The most lacking is medical care. Education and education are lacking from kindergarten to university. Beijing is the best. Beijing's public kindergartens can't meet the needs, so now the head of a public kindergarten in Beijing is more than the headmaster of the university. When a primary school teacher is a university professor. Also, the top three hospitals are overcrowded, why are they lacking, because these are government investments in the past, so as long as the government investment is lacking, and if the society comes to invest, there will be institutional problems, so the demand for these areas is increasing, but the supply is insufficient; Fourth, the industrial value chain has been upgraded, including the abrasives industry, which has high requirements for production services. In the past, for example, which big factory came to an engineer, a skilled worker might be good for this enterprise, and it might be compensated technically, but now it is not working. Now, higher requirements for R&D, design, and standards are raised. Engage in research and development, not design, no new things come out in the market competition will be unfavorable. If the company's downstream supply chain management, marketing network, logistics and distribution can not keep up, the company is not competitive. Another problem is that there are too many low-end production capacity, which may exist in various industries. Of course, the most typical ones are steel and coal, because in the past, real estate and infrastructure have pulled them up. Those low-end ineffective production capacity is difficult to maintain, but it is not easy to remove it. One reason is reluctance, and all stakeholders are not willing, but if you don’t go out, there is no way out, so why do the countries say some places now? Pressing capacity will be ordered, and administrative measures will be retired. Because there is no order, it is impossible to rely on the market. For example, the steel plant in Hebei Province, a county's steel plant has a capacity of one million tons, accounting for half of a county's GDP. To make it happen, its business owners are not happy, workers are not happy, banks are not happy, and local governments are even more reluctant. But can this be a long time? This is self-deception, deceiving people, fooling, and in the end, you still get the game. Instead of thinking about ways to do it now, or mergers and acquisitions, or transformation and upgrading, you can find a way to kill. I believe the same is true in the abrasives industry. Nowadays, the so-called supply-side structural reform is to solve this problem. This happens on the supply side. It all happens at the enterprise. This demand has changed. How do you adapt to this change? How to make up for the short supply in the middle and high end. In the past, we Before the demand structure has not changed much, the government often adopts demand management. Demand management is to put some water if the market is sluggish, and spend more money on the finances. The NDRC has more projects, and the banks give more loans to the financing platform. Give the stimulus up. It didn't matter if the stimulus was going up at the time, because it produced something that was needed, but now these methods are not working. There are no more products to be produced by these methods. Therefore, in the past, the demand management was not absolutely impossible to use. To have one thing, the water should be put a little bit, because the enterprise is very complicated, the quality is not good, the difference is good, the industry is also like this, some industries are more optimistic, but the optimistic industry also has poor enterprises, some industries are not Chaoyang industry, but not a good enterprise in the sunrise industry, only bad companies have no bad industry, this is the truth, so the official release of water in the official words is precisely regulation, directional regulation, of course, this level is very It's easy, it's actually very difficult to be precise, it's difficult to orientate, and it's often a little bit of water. So the state thinks that there will be a little bit of demand management in the future macroeconomic regulation, but it is not the main one. The main thing is to carry out structural reforms. It is to let the company have vitality and innovation.
        The main task of China's current supply-side structural reform and the main problem to be solved are “three to one, one reduction and one supplement”, including: de-capacity, de-stocking, deleveraging, cost reduction, and short-boarding. De-capacity is to remove the low-end ineffective capacity. The ex-factory price of industrial products mentioned earlier can be narrowed because the country has been doing this thing for the past year or two, and the production capacity is slowly being digested and directly removed. Of course, not only go, but also develop some new manufacturing industries in accordance with the requirements of industrial development, industrial intelligence, and China Manufacturing 2025. Destocking mainly refers to real estate, but looking at the real estate now, the effect is not very good, and I have not seen the effect. Because the original idea was to let the third- and fourth-tier city houses sell more, let the migrant workers go to buy these houses. The result is not the case now, but the first-line and second-line are selling houses, and the workers who are buying the house are not the migrant workers. The people who bought the house are still the residents of the original city. This problem is different from the original one. The next step in the country is to find a solution to this problem. De-leverage is to reduce the debt ratio of enterprises. Of course, the level of debt is different from the perspective of enterprises. The main reason is that state-owned enterprises have high debts. The reason is that state-owned enterprises are easy to borrow money, banks are willing to lend them money, and private enterprises are now difficult. Is there no problem of de-leveraging? It also has a rapid economic growth in our country. It is largely dependent on leverage. The ratio of free assets to total assets is leverage. The total assets of 2 million free assets are 20 million, so the leverage ratio is 10 times. In the past, our economy was fast and leveraged. If it is 40 million total assets, the leverage ratio is 20 times, including the stock market. By leveraging leverage, the stock market has been hard-pressed. The advantage is that the economy is fast. Everyone looks very happy and earns more money, but it implies a lot of risks. The 2 million free capital enterprises get 40 million assets. If the enterprise's market encounters a little problem, it will not turn. If the bank stops your capital chain and stops, the enterprise will not be able to stand it, and the hidden risks are in the bank, because a large part of the money is from the bank. Borrowed, the bank's money is debt financing, not equity financing. Now the so-called debt-for-equity swap is only in state-owned enterprises. I don't agree with this. How can banks go to be shareholders? Most of it is debt financing, not capital. Gold is used, you have to use it as capital, supplement it with profit, or rely on the company to issue bonds, increase investors to supplement, how do you reduce the leverage, only two ways, one by profit backfill One can increase the leverage by issuing bonds to increase the leverage. You see how difficult it is. Therefore, your company pursues fast and large, and it is inevitable that the debt ratio will be high and the leverage ratio will be high. It is very difficult for you to have such an economic situation now.
        One drop refers to cost reduction, and it is actually a management problem for enterprises to reduce costs. Cost reduction is to save money. First, relying on technological transformation to reduce labor costs and improve efficiency; others include reducing management costs, but private enterprises rely on management fees to reduce costs, because the management of private enterprises is quite fine. There are also many ways to reduce costs. In addition to the production process, there are circulation links and new business models, such as e-commerce, the most obvious is to reduce transaction costs. The cost reduction is for everyone. Some of the policies proposed by the state are for the government, but most of them are for enterprises. What the government can do for enterprises is only limited means such as reducing taxes and reducing administrative fees. Therefore, it is up to the enterprises themselves to really reduce the operating costs of enterprises.
        A supplement is a short-board, and there is a lot of content here. We have too many things missing. From the abrasives industry, the shortcomings involved in research and development, technological innovation, talent cultivation and back-end supply chain management, logistics and distribution. From the national level, it is necessary to supplement the shortcomings such as transportation, communication, hydropower, gas and heat, science, education, culture and health, but it is not easy to make up the short board.
        At present, China's product standards are low. Most industry standards are not in line with international standards. Our own standards adapt to the Chinese market, and it is relatively adapted to the needs of the past. There are two types of standards in the AQSIQ, one is mandatory and the other is recommended. For example, the standardization of the abrasives industry, if this standard is relatively low, it is equivalent to taking care of domestic manufacturers, in the Chinese market called "bad money to drive out good money", foreign countries can not compete with you, their things are good but the price High, most of our Chinese companies recognize cost and low price, and beauty is not secondary. A large proportion of consumer groups only recognize low prices, which is why we have a large number of manufacturers to survive. If the country raises this standard, a considerable number of companies will go out, and the government will be strict. If the management is not strict, the products with low standards will also get the market, even better than the good products, because it is cheap. . However, this does not last long, because the overall service standard of the product will be higher and higher, and if it is still at the original level, it will eventually be eliminated. The precision requirements for abrasives and abrasive products are relatively high. There must be industry standards and national standards, but they must be close to international standards. In this way, it takes a lot of effort to make a lot of efforts from innovation and technology research and development. This historical trend is also unstoppable. As long as someone takes the lead, everyone will consciously follow. The recommendation standard will often become a common practice in the industry. If you do not follow this standard, it is likely to go out. In the future, the government's management and guidance in this area will certainly become more and more important and stricter. Like some products have government procurement behavior, the government only purchases domestic products, those enterprises have a good life at the moment, but not long-term, government procurement in the future must be changed; another is that the norms of the domestic market depend largely on the development of standards. The formulation of technical standards, quality indicators, etc., is supervised by the government and the industrial and commercial departments. If you do not do foreigners, you will be forced to do so. Now that the state advocates the establishment of an open world economy, then the domestic market must also be open. You will not be supervised by others, so our government is also dealing with these issues, but in the end it depends on the company itself.
        From the overall situation, our country's economy will not have problems. We don't have to worry. The goal of achieving a 6.5% economic growth in the 13th Five-Year Plan is certainly no problem. Don't believe those rumors that sing the bad China, it is unfounded.总的来说，我们的经济垮不了，但是各个行业苦乐不均、有好有坏的现状是真实的，在这种情况下就要看谁能够顺应形势勇于创新，谁就能在行业里有更大的发展。

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