Wen Jiabao Talks to Implement the “New 36″
Chinese prime minister Wen Jiabao stated in two economic forums on 9th and 10th July to implement the “new 36″ to encourage and guide private investment. Economists commented that to stimulate the economy with private capital in China is difficult since the regime only views GDP development as the guideline.
The “new 36″ was stated in the “State Council’s numerous suggestions concerning encouraging and guiding the healthy development of private investment" issued in June. At the forum, Wen Jiabao instructed to ensure the implementation of the “new 36″ in details, especially in railway, municipal administration, energy,
telecommunications, health, and education to boost investor confidence.
Wen Jiabao also stressed to encourage investment, it is critical to pay attention to orientation, structure, quality and efficiency to benefit people’s livelihood and scientific development.
New Tang Dynasty Television special commentator Jason Ma believes the CCP is trying to stimulate the economy via governmental funding once again due to the declining development of the Chinese economy.
NTDTV special commentator Jason Ma: “Government projects in such matters will only gain low future return and even create debts for the government. The social environment is not encouraging to any activity that enhances the economic power,
such as the small and medium-sized enterprises, innovation, and spontaneous economic growth. Simply relying on the government to invest on low-return
infrastructure projects will have a very small effect on long-term economic development."
Jason commented that the CCP has engaged in many superficial projects, claiming to improve people’s living standards,but in fact only for the development of GDP.
None of these projects are for the people or operated with all aspects considered.
Take the railway construction Wen Jiabao mentioned at the forum as an example.
Beijing-Shanghai High Speed Rail Construction was discussed 20 years ago. The construction started at the end of 2008. However, ordinary people can not afford to enjoy this rail that connects three municipalities and four provinces.
German Daily Newspaper (die tageszeitung) reported that China’s high-speed rail is ambitious in wanting to connect coastal and poor inlanders, but, the poor can not afford this “Harmony Train." “The VIP compartment is empty." Many people can’t even afford the 2nd class ticket. Not to mention the frequent failures and delays this High-speed rail line has experienced since it commenced service.
Cheng, a Chinese economist indicated that there is no government will, policy orientation, national economic guidance or control policies in China.
Economist Mr. Cheng: “China is a party-state, national will is the will of the party. Our policies are for the interests, position and standpoint of the CCP.
We all know that in China the decision, policy, and final discretion are in the hands of the party and the party secretary."
Cheng commented that it is not easy for Wen Jiabao to make such a decision at this time. In China, the problem is not about investment, but how to make the people believe that the CCP will first change.
Economist Mr. Cheng: “The CCP system has lured and hijacked all the money.
Now, they have no money to go after, no money to support their corruption, and that is why private capital is being thought of."
Recently sacked Ministry of Railways Minister Liu Zhijun was alleged in high-speed rail corruption in as much as ten billion Yuan. Additionally, the CCP Ministry of Railways also faces liabilities of up to 2.4 trillion which forced the Ministry of Railways to reform. However, the many problems in debts, power distribution and liquidation within the Ministry of Railways have made the reform impossible. Experts believe any investment from either government or
private enterprise under such a system is useless.