The issue of regulating the economic structure is an important part of China's development strategy at the beginning of the 21st century. The" Program of the 10th five-year Plan", adopted by the National People's Congress, considers this direction to be the "main line" at this stage. Why is such importance attached to the reform of the economic structure today?

Let's start with the fact that the global economy is experiencing an increase in trends towards globalization - an unprecedented deepening of economic ties between states and an extreme tightening of competition. No country can be excluded from this process of increasing interdependence. Scientific and technological progress-the main engine of economic globalization-is developing at an unprecedented pace, creating opportunities and inevitable challenges for the economic development of different countries of the world. Scientific and technological progress and globalization have led to a significant restructuring of the structure of the economy on a planetary scale. In the developed countries of the world, computer science and new high technologies are intensively developing, and the countries that have taken the lead have developed a strong and long-term progressive trend.

After the financial crisis, developing countries in East and South-East Asia quickly realized the importance of adjusting and improving their economic structure. Under such circumstances, the PRC cannot but pay special attention to the regulation and improvement of its economic structure.

From the point of view of internal economic development, our country has also entered a new stage. This is expressed in three aspects. First, great changes have taken place in the development of the productive forces and in the relation between supply and demand. The deficit economy has largely disappeared, and economic development is shifting to market demand-driven development. At the same time, as the standard of living of the population increases, the supply of ordinary goods exceeds its demand, but there is a clear shortage of knowledge-intensive goods with a high degree of processing and added value. Second, with the development of productive forces, there is a transition from an extensive growth method to an intensive one, with an emphasis on improving the efficiency of investment and improving product quality.

Finally, after more than twenty years of reforms, there have also been significant changes in foreign economic relations, mainly comprehensive, multilevel and multisectoral openness to the outside world. With our accession to the World Trade Organization (WTO), our economy will be even more involved in the process of globalization, which, on the one hand, will allow us to actively use the international market and material resources, and on the other, will put great pressure on China.

SPECIFICS OF THE PRESENT MOMENT

This is not the first time China has faced such a problem. The economic structure has already been regulated several times in the country. However, the current process has some specific features.

First of all, this settlement is not a temporary measure, but is of a strategic nature. Previously, structural adjustment took place against the background of a deficit economy, and the transformation of the structure was actually reduced to eliminating the deficit. It was about passive regulation, and now it is taking place in conditions of comparative abundance of goods based on a new technological revolution, in close dynamic relationship with the development of the world economy. Such a settlement is naturally active and strategic.

The current streamlining is being implemented in the process of development. So far, structural adjustment has been limited to finding ways of extensive growth. Due to the one-sided emphasis on accelerating the pace of development and increasing quantitative indicators, it led to economic overheating and increased imbalances caused by excessive capital investment. In such circumstances, there was a need to reduce the volume of capital investments and slow down their growth rates.

Today, the settlement is based on scientific and technological progress and the renewal of many systems that give an impetus to the further development of the economy. Thus, it is necessary to correctly decide the relationship between development and regulation. We persistently promote structural settlement in the development process, and structural settlement contributes to economic growth.

In addition, the current adjustment of the economy means its development in depth, and not in breadth, as it was before, when insufficient supply was the main drag, and the main goal of structural changes was to increase the number of goods. Reproduction was carried out at a low level, since there was no mechanism for selecting the strongest enterprises and screening out the weak ones.

The current settlement addresses the economic impact of-

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productivity as an important link, and the ultimate goal is to increase production, technical level and competitiveness. It is impossible to keep reproduction at a low level, we need to get rid of backward productive forces, gradually set goals for new economic growth, and improve the mechanism for bankruptcy of unprofitable enterprises.

Finally, the current structural changes differ from the past in the economic system and the use of other levers and methods. Previously, the planned economy occupied a leading place, and settlement was based mainly on administrative and command methods. And now the settlement is taking place within the framework of the socialist market and economic system, in the conditions of joining the WTO. In the course of structural settlement, it is necessary to apply market levers and observe the rules of the market game recognized by the whole world. This is another specific trait that is different from the past.

In the course of economic reforms and opening up the country to the outside world, the economic structure was continuously improved and became optimal. In 1980-2000, the ratio of the three sectors of the economy - mining, industrial and service - to GDP changed from 30: 49: 21 to 16: 51: 33.

The supply of goods has improved markedly. The level of technical armament has increased, the production of new and high technologies has developed rapidly, service and maintenance have improved, and the standard of living of the city and village population has constantly increased.

At the same time, many problems remain in the economic structure, which seriously hinder further economic development.

First, the structure of productive forces is inharmoniously developed. Although the share of the secondary-manufacturing-sector is relatively high, the share of the tertiary division - the service sector-remains too low, losing 28 percent to the global average. In the structure of the labor force, the share of extractive industries is very high, almost half of the workers are employed in them (48.67%).

Second, productivity levels are still low in each sector. In agriculture, the share of high-quality products is small. In mechanical engineering, the capacity to produce low-quality products is excessive. Many key products are provided by imports. In the tertiary sector, modern services and services, machinery and technology, currency and financial work and intermediation are not sufficiently developed.

Third, the level of technological innovation remains low, and investment in research and development is insufficient. The share of economic growth achieved due to scientific and technological progress does not exceed 30 percent.

Fourth, the low level of small businesses contributed to the backward economic structure. We say this: large enterprises are not productive enough, and small ones are not specialized. In general, specialization and cooperation are still at a low level. In recent years, as market mechanisms have been introduced, competition and administrative monopoly have gone beyond reasonable limits.

Fifth, the uneven development of different regions, especially the gap between the south-eastern coastal region and the west, continues to grow. Back in 1988, the ratio of GDP per capita between the eastern, central and western regions was 100: 55, 4: 42.6. At the same time, each region, with approximately the same industrial structure, has its own independent development program, the links between them are weak, and the markets are very disconnected from each other.

Sixth, the country is slowly undergoing an urbanisation process, with the share of the urban population at 36.9 per cent, noticeably lagging behind the global average.

OVERCOMING STRUCTURAL CONTRADICTIONS

The elimination of structural contradictions will require solving a number of problems in the coming period.

First of all, it is necessary to improve the structure of the three production divisions. According to the development program of the 10th five-year plan, their ratio in GDP will be adjusted from 16:51:33 in 2000 to 13: 51: 36 in 2005.

In the field of agriculture, the task is to improve the range and quality of products and increase efficiency, including crop production, development of cattle breeding, fishing, boosting the industrial development of the agricultural sector, improving the service sector in villages, and rational use of surplus rural labor in other areas of production. In the field of industry, it is meant to actively introduce high and new technologies, advanced equipment in order to accelerate the reconstruction of such traditional industries as textiles, petrochemicals, and metallurgy. It is planned to increase the technical armament of the manufacturing industry, reduce and displace backward productive forces, and speed up the reconstruction of enterprises.

We also consider the development of the service sector, in particular, information services, currency insurance, consulting and other modern services, as an important link in the structural settlement.

Today, the country is actively developing a computer network, structural transformations of the economy are combined with computer science. On the one hand, we need to intensively develop such high technologies as electronic informatics, bioengineering, production of new materials and energy sources, aviation and cosmonautics, and environmental protection tools in order to increase the share of high-tech production in GDP. On the other hand, this process contributes to the adjustment of the economic structure as a whole, allowing traditional industry to raise the technical level and improve the structure through the widespread use of information technology. Computer science promotes industrialization. All this makes it possible to realize the "spasmodic" development of the productive forces of society.

Regulation of the distribution of productive forces contributes to the harmonious development of the regional economy. As the gap between them in development has widened, we have adopted a strategy of extensive development of the western region and accelerated development of the central territories. At the same time, the leading role of the Eastern Partnership is being strengthened.-

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the role of the marine area in the renewal of economic systems, technology innovation, and the implementation of an openness policy. The development strategy of the West provides for accelerated construction of infrastructure - transport, communications, irrigation-strengthening environmental protection, and the predominant development of industries with a good market perspective. This will take quite a long period of time, as the process of reducing the gap between the regions of China is just beginning. We will try to achieve a breakthrough in the creation of infrastructure and environmental protection in the central - western region, in the serious development of science, technology and education within 5-10 years.

PRIORITY TASKS

An important task is to increase the level of urbanization, since the lag in this process prevents the absorption of excess labor in the countryside, affects the development of the service sector, and the expansion of domestic demand.

All these issues are now becoming key points of structural contradictions. At the beginning of the twenty-first century, we need to accelerate the construction of cities in order to achieve the growth of urbanization to the level of countries with a GDP per capita corresponding to China. It is also planned to selectively develop small towns, actively develop medium and small cities, improve the functions of central cities, and expand the leading role of megacities. Based on the realities of our country, experts believe that the development of small settlements is a very urgent task. The prosperity of small-town economies, especially through the concentration of rural enterprise management, contributes to the development of the secondary and tertiary sectors of the economy in the GDP system and improves the market system of cities and villages, thereby gradually forming a rational demographic distribution and economic structure of cities and villages. The aim is to gradually eliminate all obstacles on this path, including improving the right to choose a place of residence, removing unjustified restrictions on the flow of labor from villages to towns, and resolving the issue of land use in cities and towns.

Demographic pressures and employment problems continue to worry Chinese society. Therefore, we need to address the issues of structural ordering and rational use of labor resources. We need to find the right combination of labor-intensive, capital-intensive, technology-intensive and science-intensive industries. On the one hand, it is necessary to raise the technical level of various branches of the national economy, to increase the share of economic growth achieved due to technological progress. On the other hand, it is important to develop the service sector, privatized medium and small enterprises, actively promote urbanization, in short, do everything necessary to increase employment opportunities. According to the plans of the 10th five-year plan, 40 million jobs will be created in cities and villages.

Strategic adjustment of the economic structure is not a partial and isolated measure, but is the most important task that permeates the entire process of economic development of the country. We need to use technical re-equipment and system renewal as the most important support, steadily implement the strategy of recovery through the development of science, technology and education, accelerate scientific and technological progress and train qualified personnel. We will continue to carry out strategic reorganization of state property. We need an effective combination of streamlining the economic structure and ownership. In addition to strengthening the decisive role of State ownership in sectors related to security and vital functions, it is intended to develop various forms of ownership - collective, individual and mixed.

In accordance with the WTO requirements, we will have to strengthen external and internal openness. It is necessary to properly establish relations between the Government, enterprises and the market in terms of structural adjustment and economic development. The enterprise is the subject, the market is the basis, and the government is improving its management forms, working out its coordination and service functions. The Government should quickly develop and implement appropriate laws and regulations for structural adjustment.

provide legal guarantees, and create a favorable political climate for the renewal of various systems. Macro-regulation and the development of necessary rules can ensure a consistent transformation of the economic structure. Production functions are performed by the enterprise itself and the market, and the government should not interfere in them. It is only responsible for functions that do not fall within the competence of the individual enterprise and market.

Only in this way will we be able to follow the path of a socialist market economy, improve structural regulation, ensure continuous and healthy development of the country's economy in the new century, promote the construction of a middle-class society and implement socialist modernization.

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