Many private enterprises pledged equity to borrow money

stock or real estate investment, instead of investing in their main business, which is not recommended. What we should encourage is tha

t companies should finance R&D and technology, which is conducive to economic development.

Cai Fang, vice president of the Chinese Academy of Social Sciences

What lies behind the economic slowdown is the disappearance of the demographic dividend, which has ca

used a decline in the potential growth rate, meaning there is no longer a gap between actual growth rat

es and potential rates. Now, the natural unemployment rate has climbed from 4 to 5 percent, indicating there is no cyc

lical unemployment at present and thus excessive strong stimulus is unnecessary.

The government should focus policymaking on public employment services like

training and appropriately use macroeconomic policy tools to regulate the economy.

Lou Jiwei, chairman of the National Council for Social Security Fund

Industrial policy played a certain role in the early economic developmen

t stage, but later, the actual role of industrial policy was not all positive. Take the auto ind

ustry as an example. The current “big three” private car manufa

cturers have basically broken the constraints of industrial policies to grow up.

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