Liu Zhiqin, a senior fellow at the Chongyang Institute for Financial Studies of Renmin University of China, was interviewed by CCTV Global business programme on excess capacity and eWTP on Aug.19th.
Q. Do you think China will reach its target by the rest of the year?
A. This is a very interesting question for the foreigners as well. In the past 30 years what them know is that the central government always achieve their goal in advance and never delayed. In fact there are lots of serious conflicts between local government and the companies. The interest groups always influence the labor market and the living standard of the local people. That is why we sometimes find that local governments are not very active to accomplish such targets. The interest groups want the last chance to make money from the miners. That is why they are delaying. They are waiting for the central government to change the policy. But I think in the next months China will achieve its goal because in the long run these are heavy burdens for local governments. The local government will do their best.
Q. What about the problems about jobs?
A. This is a tough task for the government, even, tougher than the problem of over-capacity. My suggestion is that the local government do not over trade the over capacity, or they would have social problems. We have to find jobs in new sections such as service industry, education industry or aging industry. The labor would find good chances if the government provide skill training.
Q. When do you think China can use market force to treat the economic factors?
A. Chinese government is always trying to find a way between market force and the dominating power, trying to find a balance or a compromise. Applying government policy to help the economy could be seen in other nations as well. Pure market force does not exist. We need to combine the two forces to get the best result.
Q. What do you think of the role of some Chinese officials?
A. In the market and in the economy they are making some negative effects. Anti corruption is very important for any society, any nation. But corruption exists all the time along with business. Anti corruption will make a fair condition and a clean environment for all the business and all the officials. That would also force the local officials to fulfill their duty to maintain their position.
Q. What do you think of the eWTP?
A. The precondition for this idea is whether it could be recognized and accepted by the international community. If the goal would be realized it would do good to China even all the Chinese enterprises. I think Jack Ma should connect with the international community to get the idea recognized.