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Why should we respect economic laws?

The efficiency and role of the market in resource allocation far exceeds imagination. Since the reform and opening up, China has experienced this personally. On the other hand, if you don't follow the market rules, you will be punished more than expected. In the past, during the period of rapid growth, there were many ways of extensive economic's development that violated economic laws and suppressed market competition. Its formation has historical reasons and brought growth, but now it has become an obstacle to China's transition to high-quality development. We must clean it up thoroughly with the determination to cure the poison before we can move on.

Let the market play a decisive role and respect economic laws, which is not only the voice of academic circles, but also the principle repeatedly emphasized by policy makers in recent years. This year, "respecting economic laws" was first written into the government work report. This is a statement: we must persist in abandoning some path dependence that does not conform to economic laws and walk on the road of respecting the market.

If you don't follow the market rules, there will be uncontrollable results that exceed expectations. There are several typical examples that have affected the economic development trend and are still affecting the economic development trend.

A very typical overcapacity phenomenon that dragged down the economy in previous years. Overcapacity is largely the result of the interest game between local governments and manufacturing industries, especially resource-based industries such as coal and steel, under the industrial support policy. The government wants GD P, political achievements, enterprises want profits, and they hit it off and strive for preferential policies for industrial support. The blind obsession with production capacity wastes a lot of resources and funds on backward production capacity that is not competitive in the market but has not been eliminated for administrative reasons. The market competition is the survival of the fittest. If these surplus production capacities are eliminated according to economic laws, there is no chance of production. When the cake grows bigger, the resources with effective production capacity are squeezed out, which is equivalent to the achievements of enterprises and some officials who use financial subsidies to produce products that are not needed in the market. The opportunity brought by the third technological revolution has opened another world for China, but it is necessary to clear up the drag of excess capacity on the overall economy as soon as possible and be alert to repeating the same mistakes.

At present, zombie enterprises, which are more headaches, are also typical of violating economic laws. The so-called zombie enterprise refers to an enterprise that has lost money for a long time and has no hope of turning losses, but has not successfully withdrawn and lives entirely on government subsidies. It is the sequela of the state-owned enterprise model in the planned economy era and the by-product of overcapacity. Basically, industries with concentrated overcapacity are also the hardest hit areas for zombie enterprises. Since 20 13, efforts have been made to clean up zombie enterprises and certain results have been achieved. In the future, in addition to increasing the intensity of sorting and cleaning up, we must also eradicate the soil where zombie enterprises exist.