The Ministry of Commerce plans to "go out" in the "Twelfth Five-Year Plan"

Abstract “The Ministry of Commerce’s 12th Five-Year Plan has been completed, including 12 special plans, and the first draft has already been published.” People familiar with the matter told this newspaper. Before, Minister of Commerce Chen Deming once introduced: Business Leader...

“The Ministry of Commerce’s 12th Five-Year Plan has been completed, including 12 special plans, and the first draft has already been made.” People familiar with the matter told this newspaper.  

Previously, Minister of Commerce Chen Deming once said: The “Twelfth Five-Year Plan” in the business field includes one master plan, three national-level special plans and six special plans within the department. The overall plan is the Outline of the Twelfth Five-Year Plan for Business Development; the national-level special plan is the Domestic Trade Development Plan, the New Advantages for Cultivating International Cooperation and Competition, and the Open Development Plan for the Border Areas.

In the view of Huo Jianguo, dean of the Ministry of Commerce, the first draft of the Ministry of Commerce's 'Twelfth Five-Year Plan' has three major changes compared to previous policies.

Consumption: from rural to urban

“Domestic trade planning was first proposed in the history of the People’s Republic of China.” In December of last year, at the annual National Business Work Conference held by Jingxi Hotel, Minister of Commerce Chen Deming left the lecture at the end of his speech. .

Subsequently, the Ministry of Commerce’s “Twelfth Five-Year” domestic trade plan also rose from the internal planning to the national level planning, which also shows that the top priority of the Ministry of Commerce in the next five years is to expand domestic consumption.

"How to boost the development of domestic trade, the focus is on rural or urban? Should we focus on circulation or consumption?" This is a lot of controversy, and has been hesitant and undecided.

Especially after the financial crisis in 2009, the Ministry of Commerce’s focus on expanding domestic consumption has been in rural areas. Trying to gradually release the potential of the rural consumer market has become an important driving force for economic growth.

Under the situation at that time, the Ministry of Commerce proposed the goal of “guaranteeing growth, expanding domestic demand, and adjusting structure” to accelerate the construction of the rural market system and expand rural consumption as an important task, with “Wancun Qianxiang Market Project” and agricultural products “farming”. Super-docking, "Double-hundred market project", the construction of agricultural products and agricultural resources circulation network as the starting point, further improve the rural consumption environment, improve rural circulation infrastructure, increase farmers' income, and stimulate rural consumption.

“Objectively, the Ministry of Commerce has a certain effect on rural consumption, but 60%~70% of the total consumption is still in the city, and rural consumption accounts for only one-third.” Huo Jianguo said, “Why don’t we go? In the '12th Five-Year Plan', there is obviously an intention to deflect the city. The construction of the network and the construction of the service supporting system have been strengthened. This direction is correct."

Nowadays, urbanization has become the so-called land urbanization. That is to say, it is only the expansion of the "urban face", and the quality of people and the ability to consume have not been supplemented. To improve the process of urbanization, the town's supporting facilities, public services, and sales outlets should all be laid out. This will create a new consumer environment.

"This shows that the focus of our next domestic trade should be on circulation, not consumption." Huo Jianguo said, "Circulation and consumption are complementary. With a formal service system and sales channels, consumption will naturally increase." Nowadays, some small and medium-sized cities and new cities are still very imperfect. These things require the state to invest money first."

"Going out" focuses on the surrounding

Recently, Minister of Commerce Chen Deming said that during the "Twelfth Five-Year Plan" period, the Ministry of Commerce will rely on the top ten plans to focus on promoting the expansion of domestic consumption while accelerating the pace of "going out".

At present, overseas growth is indeed relatively fast, but overseas acquisitions support almost 70% of the proportion, and real productive investment is not very obvious.

"In the 'Twelfth Five-Year Plan', the next step is to focus on Asia," said an official from the Ministry of Commerce.

Expert analysis, increase investment in Asia, that is, investment in emerging markets. This is due to its economic growth potential and market maturity, and the government's burden is also smaller and relatively stable.

In Africa and Latin America, China is mostly a resource-based investment, but the future returns or efficiency of resource investment are not very accurate. “There were more than 10 billion in a year, most of them are in iron ore, but how to evaluate this input and output is still not clear,” Huo Jianguo said.

In addition, African investment is not only risky, it requires relatively more supporting work, and it has to bear some social responsibility. It is understood that mining in Africa cannot be developed as it has in the past. Developers must have a protection for the environment and be good for local employment and economic growth.

In the European and American markets, the investment environment is indeed very good, but it is indeed an obstacle. Huo Jianguo believes that in the next step, the European and American markets should encourage some listed companies to invest.

Strengthening FTA to promote GNP

During the "Twelfth Five-Year Plan" period, it is unavoidable that the external environment facing China's foreign trade will become more severe. According to statistics, China's exports accounted for 9.6% of the world's exports in 2009, but the anti-dumping cases accounted for 40% of the world, the countervailing cases accounted for 75% of the world, and the number of trade investigations encountered accounted for 43% of the total number of global cases in the same period. China has become a major target of trade protectionism. "We can't just accept it passively." The above-mentioned officials of the Ministry of Commerce said that during the "Twelfth Five-Year Plan" period, we should actively promote trade liberalization and create a favorable environment for foreign trade development. "Not only multilateral but also bilateral." In his view, when the multilateral trading system such as the WTO has not made substantial progress, bilateral and regional cooperation can expand the process of globalization and investment liberalization to a certain extent. Promote global trade liberalization under the WTO framework.

Huo Jianguo believes that on the one hand, it is necessary to properly resolve the friction between China and several major traditional trading partners, and stabilize the mutual trade environment and China's market share. On the other hand, on the basis of implementing and expanding the existing free trade zone results, we will explore the signing of free trade agreements with more countries, especially developing countries, actively and steadily promote regional monetary cooperation and promote market diversification strategies. Support more companies to "go out". "The real purpose of strengthening investment and strengthening cooperation in the FTA is to pursue a part of overseas profits." Huo Jianguo said, "We are now aware of the importance of GNP because it is a symbol of wealth sovereignty. Our Overseas capital, what is urgently needed is that it can be transferred back in time. This thing is very mobile and it is within your field of vision."

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