Chinese Economics Thread


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2021 Work Report & 14th 5-Year Plan Goals, Summarized:

2020 work review
  • Annual GDP growth rate of 2.3%;
  • Over the whole year, the burden of market entities has been reduced by more than 2.6 trillion yuan, of which 1.7 trillion yuan has been reduced or exempted from social insurance premiums;
  • The remaining 5.51 million rural poor people were lifted out of poverty at the beginning of the year, and all 52 impoverished counties took off their hats;
  • All treatment costs for patients with COVID-19 are borne by the state.
Major achievements during the “13th Five-Year Plan” period
  • The GDP has increased from less than 70 trillion yuan to more than 100 trillion yuan;
  • A number of major scientific and technological achievements have been made in the fields of manned spaceflight, lunar exploration, deep-sea engineering, supercomputing, and quantum information;
  • Eliminate absolute poverty; 100 million agricultural migrants and other permanent residents settle in cities and towns; build the world’s largest social security system.
Main goals during the “14th Five-Year Plan” period
  • The economic operation is maintained within a reasonable range, and the expected economic growth target is proposed according to the actual situation in each year;
  • The urban surveyed unemployment rate is controlled within 5.5%;
  • The R&D expenditure of the whole society has increased by more than 7% annually
  • Increase the urbanization rate of permanent residents to 65%;
  • Forest coverage rate reached 24.1%;
  • Basically eliminate heavily polluted weather and urban black and smelly water bodies;
  • The growth of residents’ per capita disposable income is basically synchronized with the growth of GDP;
  • The average life expectancy will increase by 1 year;
  • The basic pension insurance participation rate has been increased to 95%.
2021 development goals and key tasks
  • GDP growth of more than 6%; economic growth rate is a comprehensive indicator, this year’s expected target is set at more than 6%, taking into account the recovery of economic operations, which is conducive to guiding all parties to focus on promoting reform and innovation and promoting high-quality development . Expected targets for economic growth, employment, and prices reflect the requirements for keeping the economy operating within a reasonable range, and smoothly link up with future targets, which are conducive to achieving sustainable and healthy development.
  • Adhere to the organic combination of normalized prevention and control and local emergency response, strictly prevent the spread of clustered epidemics and sporadic cases, and promote the development of vaccines and free vaccination in an orderly manner.
  • More than 11 million new jobs in cities and towns;
  • This year’s deficit rate is planned to be around 3.2%, and no special anti-epidemic treasury bonds will be issued;
  • Increase the VAT threshold for small-scale taxpayers from monthly sales of 100,000 yuan to 150,000 yuan;
  • For small and micro enterprises and individual industrial and commercial households whose annual taxable income is less than 1 million yuan, on the basis of the current preferential policies, the income tax will be halved;
  • Guide banks to expand credit loans, continue to increase first-lending customers, and promote loan-on-demand loans;
  • Reduce or abolish the working life requirements of some vocational qualification examinations for admission;
  • Promote the liberalization of household registration restrictions for participating in social insurance in the place of employment;
  • All administrative licensing items are included in the list management;
  • Matters frequently handled by enterprises and the masses, this year will basically achieve “trans-provincial administration”;
  • The average rate of broadband and dedicated lines for SMEs will be reduced by another 10%;
  • Cancel port construction fees, and reduce the civil aviation development fund airline collection standard by 20%;
  • Basic research expenditures at the central level increased by 10.6%;
  • Strengthen the construction of 5G network and gigabit optical network;
  • Steady increase in bulk consumption of automobiles, home appliances, etc., and remove unreasonable restrictions on second-hand car transactions;
  • Increase parking lots, charging piles, power stations and other facilities to speed up the construction of a power battery recycling system;
  • Newly started reconstruction of 53,000 old communities in cities and towns;
  • Incorporate more chronic disease, common disease drugs and high-value medical consumables into centralized procurement;
  • Reduce the burden of renting housing taxes and fees, and try our best to help new citizens and young people alleviate housing difficulties;
  • Raise the standard of basic pensions for retirees, pensions for special care recipients, and living allowances.


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More billionaires is not something to celebrate. It indicates widening inequality between the upper and lower classes of Chinese society.
No worries, there is no high or low class people in China, only rich, poor and middle income Chinese. The absolute poor has been eradicated with their lives uplifted in 2020 according to Xi and he seem to be the poster boy of the poor.
It's also OK to get rich, being wealthy is glorious according to Deng but he probably didn't expect his policy could have generate a single billionaire.
Hi, even US has very rich and poor populace and the gap is even wider and growing.
Wealth inequality is a natural part of growth unless everyone agrees to remain stagnant. It's up to the government competence in regulating it.


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China needs to start buying some MC-21s. They don't need to spend a lot of money. Just three or four would send Boeing/Airbus into a panic. In the future the competition will be Comac vs. Irkut for the Chinese market. The sooner they get there the better.
I could be wrong, within the Chinese civilian aviation service industry, there is still a worshipping attitude toward Boeing and Airbus, as well as disdain for domestic and Russian airliners. After flying China Eastern and China Southern Airlines for more than 10 years across the Pacific, that's the impression I have when I talked to Chinese cabin crew, pilots, and engineers. Therefore, I hypothesis that Chinese airliners would not be very comfortable receiving MC-21s, as Russian airliners do not have the best safety records.


They're afraid of China buying their own airliner. That's what it's all about because China is the biggest buyer of new airliners in the world for the foreseeable future. You don't have a strong hand against China when you're accusing the EU of subsidizing Airbus when their strategy to prevent China from buying their own airliner is to accuse China of subsidizing theirs. Typical hypocrites where they think they can force China to buy their planes when China can easily label Boeing and Airbus as unreliable for national security reasons.


Registered Member
Even in Russia proper it has taken direct government intervention for the carriers to start buying Russian aircraft in quantity.
I can understand the carriers point of view though. Even relatively reliable and modern aircraft like the Tu-204 or Il-96 had less automation and required a 3 man crew vs a 2 man crew in Western aircraft. This made the Russian aircraft less competitive. There was also a lot of corruption leading to Western aircraft sales in the 1990s.
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