Lou Jiaping: Regarding Structural Adjustment, Conversion of New and Old Kinetic Energy, and Effective Risk Prevention and Control

Release time:2017-05-12Author: Lou Jiaping

First of all, with regard to structural adjustment, on the whole, the "capacity" of "structural adjustment" in the hands of the government is obviously excessive, and the government's effect on "structural" improvement has always been poor. Therefore, the government should “cut overcapacity” and make a list of "structures" that allow the government to "adjust": in terms of necessity, those included in the list must be commensurate with the most basic public responsibilities and functions of the government; as far as the possibility is concerned, the less types and quantity of "structures" listed in the list, the better, and more "structural adjustment" should be entrusted to the market and the law.Secondly, with regard to the conversion of new and old kinetic energy, it should be clear what the new and old kinetic energy are, how to identify the old and new kinetic energy, and whether the conversion is to directly replace the old with the new, or to mix and gradually replace the old with the new.Finally, on the effective prevention and control of risk. The risk here mainly refers to financial risk. In order to deal with risks, the government should have a sense of responsibility and strengthen financial supervision.