What is China’s economic development model?

Four models of regional economic development in China

That is, the four models of the Yangtze River Delta, the Pearl River Delta, Wenzhou, and Southern Jiangsu

Since entering the 21st century, in the reform In Mainland China, which has been open to the public for nearly 30 years, the vitality of the regional economy in the Yangtze River Delta, Pearl River Delta, Zhejiang and Fujian coastal areas is no weaker than that of any small "dragon" or "tiger". Has Wenzhou entered the "Keynesian" era? The "Wenzhou Model" that was once a textbook model for China's private economic development is quietly changing. Wenzhou, an amazing place, produces 10% of the national market share of clothing, 20% of shoes, 60% of razors, 65% of locks, 80% of glasses, 90% of metal shell lighters and 90% of the national market share. % of watercolor pens. Electrical appliances, pumps, zippers, hardware products, automobile and motorcycle accessories, stationery and other industries also play a very important role in the country. In 1986, the famous sociologist Professor Fei Xiaotong summarized the "Wenzhou Model" in six words: "small commodities, big market", saying that its significance lies in activating a large market that is spontaneous among the people and spreads across the country, and directly promotes the production of goods among producers. A distribution network has been established with consumers. In recent years, Wenzhou's reputation has been difficult to live up to. "The pacesetters in front are getting further and further away, and the pursuers behind are aggressive." The low technology content and low added value of traditional industries have become important factors affecting Wenzhou's competitiveness and growth. The three "sharp tools" that have made the "Wenzhou Model" famous around the world are also showing signs of blunting: First, Wenzhou's cheap and high-quality light industrial products frequently encounter international trade barriers and their exports are blocked; second, Wenzhou's capital has difficulty finding a way out; third, Wenzhou's The market spirit of the first generation of entrepreneurs is hard to find in the second generation of successors. The governance philosophy of the Wenzhou Municipal Government in the early stages of economic development opened the way for the free development of Wenzhou's private economy, but the government's public service functions were weakened under the banner of "inaction". After 2005, Wenzhou has experienced a huge change in government functions, from "doing nothing" to "doing something", from "nothing" to "strong management", and attracting investment has become the "No. 1 project" of this prefecture-level city. . Wang Jianman, Secretary of the Wenzhou Municipal Party Committee, said: "Without the investment of external funds, the introduction of advanced equipment, and the introduction of advanced intelligence, it will be very difficult for Wenzhou to achieve rapid and good development." The emergence of Keynesianism marks the laissez-faire movement of the West The end of the economic era. After more than 20 years of free development, has Wenzhou also entered a certain sense of the "Keynesian" era? How will a strong government lead the "Wenzhou Model"? Does the Suzhou model only grow bones but not meat? "It only grows bones but not meat" may be the most controversial comment for Suzhou, China's most dazzling urban economic star for many years. The so-called "Suzhou model" is actually an economic development model similar to the "government-led" model of Japan and South Korea in the early years, but it has its own characteristics. In addition to providing an institutional and policy environment, the government also attracts foreign investment by formulating very clear development plans and strategies. Some foreign businessmen joked, "When doing business in Suzhou, it is useless to go to the factory director or manager. You have to go to the director or secretary." In Suzhou's economy, foreign investment has always been the main force in development. Driven by the demonstration of the Suzhou Singapore Development Park, Suzhou has set off a boom in the park economy. There is a widely circulated local joke that in Shenzhen, a falling coconut will hit four general managers, but in Suzhou, if you look around, every place is a development zone. In the process of "dancing with wolves", Suzhou people's wings gradually hardened. Today, China has obtained a controlling stake in Sino-Singapore Suzhou Industrial Park Development Co., Ltd. and has learned basic experience in urban construction and public administration. Suzhou's industry has also rapidly expanded its strength. According to statistics, Suzhou's GDP reached 402.6 billion yuan in 2005, ranking fifth in the country. However, in sharp contrast to these high indicators that highlight political achievements, it is in a relatively embarrassing state of lagging behind in many indicators that reflect the affluence of the people. As a result, some people began to question the "Suzhou model." In response to various doubts from the outside world, Gu Weidong, director of the Economic Research Institute of the Jiangsu Provincial Development and Reform Commission, said that the large influx of foreign capital has played a very important role in Suzhou's economic growth, popularity accumulation, management concepts and technological level improvement. Suzhou's economic development The technological content is significantly higher than that of many cities. It would be unfair to say that Suzhou has "only bones but not meat", but it must be noted that there are also "short legs" behind the "myth" of Suzhou: First, the self-employed private economy is obviously lagging behind compared with Zhejiang and other places.

For many years, Suzhou has been a model of the collective economy in southern Jiangsu. It has been under greater pressure to "protect the red flag" than other places. For a long time, it lacked the necessary nutrients and living space for the development of the private economy. Second, the development of the tertiary industry lags significantly behind its industrialization process. The shortcomings of the "Suzhou model" are unavoidable and change is imperative. In 2003, Suzhou established the "three pillars" policy: export-oriented economy, private economy and economies of scale with independent intellectual property rights. In the past two years, Suzhou's economic development has seen a new situation driven by both foreign investment and private investment. According to statistics from the Suzhou Municipal Bureau of Statistics, individual and private investment in Suzhou reached 35.412 billion yuan in the first half of this year, surpassing foreign investment for the first time and ranking first among various investment types. Technological innovation has also made great progress in Suzhou. Suzhou Industrial Park has invested tens of billions of yuan in recent years to build scientific and technological innovation carriers such as the International Science and Technology Park, Dushu Lake Higher Education Zone, and venture capital funds. I believe it will have good results. From "Made in Dongguan" to "Created in Dongguan" "No matter where the order is placed in the world, it will be made in Dongguan". This image used to make Dongguan people quite proud. Over the past 20 years, Dongguan has developed into a "global processing and manufacturing center" with an annual output value of over 200 billion yuan. Its total foreign trade volume ranks third among large and medium-sized cities in the country and first among prefecture-level cities in the country. It has become the fastest growing economy in China. one of the regions. Dongguan's success is the best version of the saying "the right time, the right location, and the right people". Dongguan is adjacent to Hong Kong, Macao, Guangzhou and Shenzhen. It is also a famous hometown of overseas Chinese, with nearly one million compatriots from Hong Kong and Macao and overseas Chinese. The 1980s and 1990s were the first wave of labor-intensive industries from Hong Kong and Taiwan moving to coastal areas of the mainland that enjoyed preferential investment policies. Dongguan became the first choice for foreign businessmen in the Pearl River Delta. Dongguan's success stems from the "three to one supplement": Dongguan provides land and factories, Sichuan, Hunan and other provinces in mainland China provide cheap labor, and foreign capital provides funds, equipment, technology and management to carry out international industrial transfer. Undertake. This model promoted the great development of Dongguan's economy under specific historical conditions, but now the growth energy released by this development model is approaching its limit. The vast majority of Dongguan's external economy is in the processing and manufacturing sector, which is at the downstream and end of the international vertical division of labor. The added value of products is very limited, and only a meager profit share can be obtained. For example, if a mouse sells for US$24 in the US market, the channel dealer can earn US$8, the brand owner can earn US$10, and the OEM manufacturer can only earn US$0.3. According to estimates, for every 1 percentage point increase in Dongguan's GDP since the reform and opening up, about 1,200 acres of land will be consumed. If calculated at this rate, Dongguan's land reserve resources will be exhausted within a dozen years. Dongguan's predicament is a common problem faced by the Pearl River Delta and even the first-mover regions across the country, and its transformation has undoubtedly attracted much attention. Jiang Ling, a member of the Standing Committee of the Dongguan Municipal Party Committee, said that in the past 20 years, foreign capital chose Dongguan and Dongguan seized the opportunity. Now Dongguan has to choose foreign capital on its own. The difference between "attracting investment" and "selecting investment" reflects that Dongguan now attaches great importance to improving the level and quality of utilizing foreign investment. Dongguan also proposed innovative ways to utilize foreign capital. At the same time, technology is accelerating to replace capital and land and become the primary resource supporting economic development. The Gaobao Group, located in Changping Town, Dongguan, established the country's first town-level postdoctoral workstation and spent nearly 100 million yuan to build a first-class laboratory in the country. Starting from this year, Dongguan City's finance will invest no less than 1 billion yuan every year, and more than 5 billion yuan for five consecutive years, to fund and guide companies to establish R&D institutions, etc., to build a technological Dongguan. Jinjiang bids farewell to the simple cluster model. In 1994, at the China Rural Development Road Seminar, when Jinjiang, Wenzhou and the Pearl River Delta were listed as a model for China's township economic development, many people disagreed: What is the significance of a "specimen" for the economic development of a county-level city? How old? Twelve years later, Jinjiang has delivered a satisfactory answer. The key enterprises in a cluster are likened to the first tree seeds. Once planted in the ground, a forest may grow. Xunxing Zipper is such a "tree species". Twenty years ago, Xunxing Zipper started from 16,000 yuan. In 1995, it established a group. In 2002, it established SBS Xunxing Zipper Technology Co., Ltd., becoming a professional zipper company integrating mold development, zipper production, electroplating and dyeing. More than 200 enterprises have provided supporting facilities, forming an industrial cluster, and now the output value has reached 1 billion yuan. The way to realize industrialization and promote urbanization by developing industrial clusters is today’s modern version of the “Jinjiang Model” based on regional economic development.

In Jinjiang, these clusters have gathered more than 6,000 enterprises, with an annual output value of more than 60 billion yuan, accounting for more than 90% of the city's total industrial output value. The driving effect of the "Jinjiang Model" made the industrial cluster trend once popular in eastern China. The "Jinjiang Model" is undoubtedly successful, but it is not perfect. Jinjiang's economy today mainly relies on private enterprises, and most private enterprises here still face three "weaknesses": family-run operations, weak technological competitiveness, and lack of awareness of brand protection. Moreover, when the industry develops to a certain scale, product quality and market size will enter a stable period, which means that growth will stop. This is the problem faced by Jinjiang people today. As a result, the shrewd Jinjiang people began to take another path. Jinjiang entrepreneurs understand the power of brand. From sample processing to OEM production, and then to launching its own brand, Jinjiang has gradually created the prototype of a "brand city". Jinjiang currently has 37 well-known Chinese trademarks, 24 Chinese famous brand products, and 63 national brands. Jinjiang companies are good at building brands through celebrity endorsements and media advertising. In recent years, their annual advertising investment has reached more than 700 million yuan. Some people jokingly call CCTV Sports Channel the "Jinjiang Channel". At the same time, the government is also trying to promote new changes in the "Jinjiang Model". Yang Yimin, Secretary of the Jinjiang Municipal Party Committee, said that a considerable number of industrial clusters have bid farewell to the simple "gathering" stage and have begun to introduce new business models relying on their own advantageous brands. The government will also vigorously promote enterprises to move from family systems to joint-stock cooperative systems and form new clusters through capital ties.