BIZCHINA> Review & Analysis
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BIZCHINA> Review & Analysis
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Time to revise old ideas of economic security
(China Daily)
Updated: 2008-07-01 11:20 When implemented in the concrete economic structure, another picture arises: manufacturing industry is controlled by circulation industry, which, however, is under the control of financial industry. Getting down to China, the situation is that the monopolistic market status of foreign capital is squeezing the profit of its manufacturing industry. The international economic order and competition configurations fully manifest that financial industry is the core of the modern economy. And thus financial security has evolved into the core security of a country as financial competition has become the core of competitions between countries in the world. Financial strength decides a country's strength. Currently, China's reform and opening-up process and social development have entered a crucial period, with its domestic economic and social contradictions mainly focusing on the financial industry. The country's financial industry, although appearing vigorous because of reforms, is still a problems-fraught sector. As the subjects of the market, the enterprise and individual are also key to economic security. As far as enterprises are concerned, it mainly refers to their ability to participate in international division of labors and international competition. Due to the control of intellectual property right (IPR), key technologies and sale channels by the foreign-funded enterprises, many Chinese-funded enterprises have to succumb to trans-national companies and, as a result, only become a link in their international production and supply chains. The significance of individuals to economic security mainly centers on their consciousness of economic security and their ability to safeguard economic security in relevant fields. Misled by economic prosperity over some time, many in the Chinese intelligentsia harbor a weak understanding of international competition and crises. Since the reform and opening-up, China's economy has witnessed rapid development, and its comprehensive national strength remarkably improved. Its international competitiveness has also been on the steady rise. But compared with developed countries, China is still lagging behind in many aspects. Due to complicated changes in international circumstances, uncertain factors that influence the world's peace and development has been on the increase. The situation in which developed countries enjoy advantages in economy and science and technology will not change for a long period in the future, and unbalanced development in the world's economy will further deteriorate. The competition involving resources, the market, technology and talents will become even harsher. Trade protectionism has embodied some new tendencies. All these factors such as, to be specific, the US economic hegemony, the turbulence in international financial market and the impact of international idle funds, ever-aggravating conflicts in trade and IPR, the struggle for world resources and fluctuation of their prices and cross-border crimes, will directly or indirectly affect the external environment of China's economic security. How to improve economic security has posed to the country a pressing challenge to examine and tackle. (For more biz stories, please visit Industries)
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