Wu Jinglian: Ten Years Arguing Gives Answers. The Market Will Play A Decisive Role.

Wu Jinglian: I am very glad to be able to participate in our fifth global. PE Beijing Forum In particular, the topic of the forum is very fascinating and the timing is very good. The discussion of PE, or the expansion of VC and its transformation, innovation and opportunities, is indeed a very good opportunity. Especially in the third Plenary Session of the 18th CPC Central Committee, we made an opportunity to comprehensively deepen reform at the beginning of the new era.

PE and VC for the growth of enterprise groups for us. market economy In the past 10 or 20 years, our PE circles should say that they have done a good job and strive hard to help a group of enterprises stand out and grow stronger. However, we can not deny that we still have many problems, our own weaknesses and external environment problems. This makes some enterprises who have mastered the core technology or core business capabilities well developed and even fail to do well, so they died in their youth. In addition, there are some zombie enterprises, or enterprises that have little effect, but they consume our social capital there.

Why is such a situation caused? On the one hand, of course, it is the problem of our industry itself. But it is very important to say that the environmental problem is decisive. There are many problems in the operating environment, especially in the legal environment and the regulatory environment. Enterprises like PE and VC are like other enterprises. If you have a good system environment, they will be able to develop. If the system environment is not good, it may turn the other way around. Therefore, it is urgent to solve this problem. Under a good environment, good business environment, legal environment and regulatory environment, let the good PE and VC enterprises grow and grow, and promote those backward enterprises to improve them. If they can not be changed, they will be eliminated and the whole industry will flourish. This is a very important task for our industry and also for our entire economy. The necessary institutional arrangements in recent years, including the lack of institutional arrangements for PE and VC, have made our high-tech industries and strategic emerging industries unsatisfactory. Therefore, this is a very difficult and important task before us, and now there is a new situation and an opportunity to emerge. This is the decision made by the third plenary session. According to the decision of the third plenary session, the comprehensive reform will soon be carried out in an all-round way. It will certainly include the reform of our enterprises and its business environment. We need to study how we can do our best in such a historical condition and benefit from it.

I think we have something to do with it. The Third Plenary Session of the 18th CPC Central Committee There are two sentences in this decision, which is the most important. In a word, we should focus on the market and play a decisive role in the allocation of resources to deepen the economic reform in an all-round way. What is the importance of this sentence? It is a great debate that lasted for nearly ten years, and made a clear answer by the Central Committee of the Communist Party of China. It is also a clear answer of the Chinese government. The core of this debate is whether the decisive role of the government or the decisive role of the market in the allocation of resources is the core issue. In the past ten years or so, in the past 7 or 8 years, the government has decided that a strong and strong government should play a decisive role. The voice of this view is getting higher and higher. It has only changed in the first one or two years of the eighteen years. It is believed that the reform can solve all kinds of problems we face, and this view has gradually gained the consensus of people of insight. The eighteen party made a preliminary answer to this question. The third plenary session made it more clear that the market played a decisive role in this process. In fact, many problems in our industry are related to this. The root of our problems is decisive in the fact that the executive authorities have to take the place of the market. Therefore, this article should point out a bright road and the right direction for us. This is also a basic point to solve our own problems and solve various problems of the environment.

I think the second most important thing is that building a unified, open and competitive market is the basis for the market to play a decisive role in the allocation of resources. It not only puts forward a directional request, but also points out what kind of institutional support it needs to achieve this directional demand. If there is no certain institutional foundation, you will finally fail to put forward many good slogans. We have mentioned in the past that the market should play a fundamental role in the allocation of resources, and then we should give full play to the fundamental role of the market in the allocation of resources. Because the institutional foundation has not been established, there are many defects in the market mechanism that we have initially formed. Generally speaking, there are four or five problems. The first problem is that the role of the government is very large. The government is organized according to the rules and blocks. Therefore, it is the first problem to divide the market and divide the market. The second problem is not equality and openness to all market players. It is the government that allows you to do what you can do. This is a market with very limited access. The third problem is the lack of competitiveness, because there are industry protection, regional protection, administrative monopoly, and lack of competitiveness. If the market is not competitive, it is not the market.