Lang Xianping, a famous economist and professor of the Chinese University of Hong Kong, attended the 4th Taiwan Merchant (Huai’an) Forum.
Since 2006 stock and real estate foam, I have recognized this is not a simple issue of excess liquidity, said Prof. Lang, deterioration of manufacture industry business and operation environment is the fundamental reason.
Years of merchant inviting and investment introducing and waves of export and earning foreign exchange have brought serious overplus of production capacity, while savings of residents are low and purchasing power is weak, as a result, consumption only accounts for about 35% of GDP. On one hand, capacity is overplus; on the other hand, consumption is not enough, plus public investment expenditure expands excessively and inconstantly, causing hardships faced by enterprises and insufficient driving force for growth of economy.
Of course, Prof. Lang did not deny significance of investment introducing for regional development. It is be out fashion to invite merchants by preferential measures, now the way of differentiation should be taken for regional competition, said Lang Xianping, because similar preferential policies have been provided by all places, and environmental depravation and capacity overmuch have become the largest hardships for enterprises. So the government should go to the “basic roots”, address real hardships for enterprises and benefit them, only in this way, differentiation could be formed in competition and new advantages could be obtained.
“Taiwan Merchant (Huai’an) Forum is a good way to communicate information”, Lang pointed out, and he said the forum plays roles in settling problems for enterprises and attracting more Taiwan merchants to Huai’an.