Macroeconomic regulation and control

Last updated

Macroeconomic regulation and control (simplified Chinese :宏观调控; traditional Chinese :宏觀調控; pinyin :Hóngguān tiáokòng) often abbreviated Macro-control (simplified Chinese :宏调; traditional Chinese :宏調; pinyin :Hóngtiáo) refers to the use of direct government intervention by the central government of the People's Republic of China to cool down the overheated economy. The policy was first introduced in 1993 by Zhu Rongji, Premier of the People's Republic of China and Governor of the People's Bank of China at the time. His policies included collective measures to constrain monetary policy, suppress real estate and stock markets, control inflation, lower supplies of raw materials and reduce domestic consumption. The purpose was to achieve a so-called soft landing of an economy that was growing too fast.

Simplified Chinese characters standardized Chinese characters developed in mainland China

Simplified Chinese characters are standardized Chinese characters prescribed in the Table of General Standard Chinese Characters for use in mainland China. Along with traditional Chinese characters, they are one of the two standard character sets of the contemporary Chinese written language. The government of the People's Republic of China in mainland China has promoted them for use in printing since the 1950s and 1960s to encourage literacy. They are officially used in the People's Republic of China and Singapore.

Traditional Chinese characters Traditional Chinese characters

Traditional Chinese characters are Chinese characters in any character set that does not contain newly created characters or character substitutions performed after 1946. They are most commonly the characters in the standardized character sets of Taiwan, of Hong Kong and Macau, and in the Kangxi Dictionary. The modern shapes of traditional Chinese characters first appeared with the emergence of the clerical script during the Han Dynasty, and have been more or less stable since the 5th century.

Hanyu Pinyin, often abbreviated to pinyin, is the official romanization system for Standard Chinese in mainland China and to some extent in Taiwan. It is often used to teach Standard Mandarin Chinese, which is normally written using Chinese characters. The system includes four diacritics denoting tones. Pinyin without tone marks is used to spell Chinese names and words in languages written with the Latin alphabet, and also in certain computer input methods to enter Chinese characters.

As all these measures can vastly affect the economy and political stability, macro-control has become a hot topic to economic and political observers of the People's Republic of China.

See also

Economy of China economy of the Peoples Republic of China

The socialist market economy of the People's Republic of China is the world's second largest economy by nominal GDP and the world's largest economy by purchasing power parity. Until 2015, China was the world's fastest-growing major economy, with growth rates averaging 6% over 30 years. Due to historical and political facts of China's developing economy, China's public sector accounts for a bigger share of the national economy than the burgeoning private sector. According to the IMF, on a per capita income basis China ranked 71st by GDP (nominal) and 78th by GDP (PPP) per capita in 2016. The country has an estimated $23 trillion worth of natural resources, 90% of which are coal and rare earth metals. China also has the world's largest total banking sector assets of $39.9 trillion with $26.54 trillion in total deposits.

A mixed economy is variously defined as an economic system blending elements of market economies with elements of planned economies, free markets with state interventionism, or private enterprise with public enterprise. There is no single definition of a mixed economy, but rather two major definitions. The first of these definitions refers to a mixture of markets with state interventionism, referring to capitalist market economies with strong regulatory oversight, interventionist policies and governmental provision of public services. The second definition is apolitical in nature and strictly refers to an economy containing a mixture of private enterprise with public enterprise.

Socialist economics comprises the economic theories, practices, and norms of hypothetical and existing socialist economic systems.


Related Research Articles

Economic interventionism economic policy perspective favoring government intervention in the market process

Economic interventionism is an economic policy perspective favoring government intervention in the market process to correct the market failures and promote the general welfare of the people. An economic intervention is an action taken by a government or international institution in a market economy in an effort to impact the economy beyond the basic regulation of fraud and enforcement of contracts and provision of public goods. Economic intervention can be aimed at a variety of political or economic objectives, such as promoting economic growth, increasing employment, raising wages, raising or reducing prices, promoting income equality, managing the money supply and interest rates, increasing profits, or addressing market failures.

Ministry of Finance of the Peoples Republic of China Chinese government agency managing finance

The Ministry of Finance of the Government of the People's Republic of China is the national executive agency of the Central People's Government which administers macroeconomic policies and the national annual budget. It also handles fiscal policy, economic regulations and government expenditure for the state.

A transition economy or transitional economy is an economy which is changing from a centrally planned economy to a market economy. Transition economies undergo a set of structural transformations intended to develop market-based institutions. These include economic liberalization, where prices are set by market forces rather than by a central planning organization. In addition to this trade barriers are removed, there is a push to privatize state-owned enterprises and resources, state and collectively run enterprises are restructured as businesses, and a financial sector is created to facilitate macroeconomic stabilization and the movement of private capital. The process has been applied in China, the former Soviet Union and Eastern bloc countries of Europe and some Third world countries, and detailed work has been undertaken on its economic and social effects.

Microeconomic reform comprises policies directed to achieve improvements in economic efficiency, either by eliminating or reducing distortions in individual sectors of the economy or by reforming economy-wide policies such as tax policy and competition policy with an emphasis on economic efficiency, rather than other goals such as equity or employment growth.

The All-China Federation of Industry and Commerce is a non-governmental chamber of commerce, established in 1953 as a successor to the chambers of commerce that were first founded during the Qing Dynasty. Today, it consists of Chinese industrialists and business people under the leadership of the United Front Department of the Communist Party of China, as well as being a constituent organization of the National Committee of the Chinese People’s Political Consultative Conference and the holder of a number of seats in the National People's Congress. The organization assists the government in managing China's private economy and acts as a bridge between the private sector and the government.

Northeast Area Revitalization Plan

Revitalize The Old Northeast Industrial Bases, also Revitalize Northeast China or Northeast China Revitalization, is a policy adopted by the People's Republic of China to rejuvenate industrial bases in Northeast China. The areas targeted once functioned as the center of heavy industry in China, first under Japanese-occupation and then under the state-led development of the People's Republic of China. Since the 1980s, the region has been heavily affected by the restructuring of the Chinese economy and the closing and consolidation of many heavy industry State-owned enterprises (SOEs). It covers three provinces: Heilongjiang, Jilin, and Liaoning, collectively referred to as Dongbei, as well as the five eastern prefectures of Inner Mongolia: Xilin Gol, Chifeng, Tongliao, Hinggan and Hulunbuir.

Rise of Central China Plan

The Rise of Central China Plan is a policy adopted by the People's Republic of China to accelerate the development of its central regions. It was announced by Premier Wen Jiabao on 5 March 2004. It covers six provinces: Shanxi, Henan, Anhui, Hubei, Hunan, and Jiangxi.

United States of China is a political concept first devised in the early 1920s by Chen Jiongming of a federalized China modeled closely after the United States of America. Given the political, social and linguistic realities of China in the warlord period, Chen Jiongming believed that a federalist approach was the only feasible way to eventually establish a united, democratic republic. Beginning with Guangdong as a model state, he wanted to organize a "United States of China in the manner of the American experience" through negotiation with federalists from all parts of the country.

Li Kwoh-ting Taiwanese politician

Li Kwoh-ting was a Chinese economist and politician best known as the "Father of Taiwan's Economic Miracle" and referred to by the New York Times as the "Godfather of Technology" in Taiwan for his work in transforming Taiwan's economy from an agrarian-based system into one of the world's leading producers of information and telecommunications technology.

A rural credit cooperative (RCC) or is a cooperative or credit union sanctioned by People's Bank of China to provide credit in the rural areas of the People's Republic of China.

Hangchow University, also known by its Chinese name Zhijiang University, was a Protestant missionary university in Hangzhou (Hangchow), Zhejiang, China. It is now part of Zhejiang University, and its former campus is a major nationally protected historic site of China.

Ma Hong, born in Dingxiang County, Shanxi Province, China, was a well known economist and was chiefly responsible for the reintroduction of market economics to China. He also pioneered Policy Consultation and chaired a government think tank.

Xihaian District & State-level new area in Shandong, Peoples Republic of China

Xihai'an also known as Qingdao West Coast is a district of Qingdao, Shandong, China, located southwest and west of the main urban area of the city on the western shore of Jiaozhou Bay. It was identical to Qingdao Economic and Technological Development Zone (QETDZ) which was launched in 1985 after the zone was merged with Huangdao District and set up the Free Trade Zone in 1992. In December 2012, neighbouring Jiaonan City was merged into Huangdao.

You County County in Hunan, Peoples Republic of China

You County is a county in Hunan Province, China; it is under the administration of Zhuzhou City. Located on the south eastern margin of the province, the county is bordered to the north by Xiangdong District, Pingxiang City of Jiangxi, Liling City and Zhuzhou County, to the west by Hengdong County, to the south by Chaling County, to the east by Lianhua County of Jiangxi. You County covers 2,649 km2 (1,023 sq mi), as of 2015, it had a registered population of 819,845. The county has 13 towns and 4 subdistricts under its jurisdiction, the county seat is at Chunlian Subdistrict (春联街道).

Diaobingshan County-level city in Liaoning, Peoples Republic of China

Diaobingshan is a city in the northeast of Liaoning province in Northeast China. It is under the administration of Tieling City, which lies 30 kilometres (19 mi) to the southeast.

Chinese economic reform Reforms allowing more free markets in China since Deng Xiaoping

The Chinese economic reform refers to the program of economic reforms termed "Socialism with Chinese characteristics" and "socialist market economy" in the People's Republic of China (PRC) which reformists within the Communist Party of China - led by Deng Xiaoping - started in December 1978.

Chen Baihuai is a former Chinese politician from Hubei province. At the height of his career he served as the deputy chairman of the province's political advisory body. He was detained and underwent trial for corruption charges in 2014.

Yang Xin is a former Chinese politician from Heilongjiang Province. He was the Party Secretary and Mayor of Qiqihar, and prior to that Mayor of Daqing. In September 2014 Yang was investigated by the Communist Party's anti-corruption body.