Cao Dewang went to the United States and compared the cost of manufacturing in China and the United States, pushing the real problems of China's real economy to the forefront.
From 1978 to 2008, China's average GDP growth was nearly 10 percentage points. In 2009, it became the world's second largest economy, surpassing Japan. In 2010, it became the world's largest exporter and in 2013 it became the world's largest trading country.
1. Reform has reduced institutional costs, which is the key to China’s economic rise.
The economy will develop and will grow at a high speed. The key to breaking down its factors is three things:
First, long-term poverty forms a huge amount of cheap labor.
I used to study agriculture. What do I often do with so much surplus labor? Who will hire them? What power can bring them to the market? How to calculate it is not a good idea.
As soon as we change our opening up, we find that the method has come. Foreign capital has the technology and can be combined with your most productive elements of poverty. This is an important element of the Chinese economy.
Second, reform has reduced China's institutional costs.
The cost of light is low, the manpower is cheap, and it cannot be automatically turned into a product. If there are many solidified things in the brain, the hands and feet are tied, the mind is not liberated, and the system is not reformed, it will not be done, and it cannot be done.
So the second important experience that the Chinese economy can rise up is reform. The so-called reform is to use practice to check which practices, which policies, which laws, and which red-headed documents are binding productivity.
Unraveling these things that bind productivity, the institutional costs of all economic organizations are also drastically reduced.
We used to learn the Soviet model in the past, people are cheap, but the system is expensive. We have seen a lot of things in the market, but we can't react, we don't build a state-owned system, and no one moves.
This set of things was solved step by step after the Third Plenary Session of the 11th CPC Central Committee in 1978. The state is this national strength, and if it is to tie its hands and feet, it will never develop.
After the Third Plenary Session of the Eleventh Central Committee, gradually unraveling the hands and feet, mobilizing everyone to do it together, having money to make money, and making a strong contribution, with a private economy and small and medium-sized enterprises. This is the second key factor that China can get.
The third is very important, that is, the Chinese are good at learning.
The low cost of the system, coupled with the low cost of labor factors, can this economy develop? If your workforce does not have a certain quality, it still doesn't work.
What is the quality of this? Learn by.
This doesn't let it dry, it doesn't let it dry, so I won't do it. Like I used a large kettle from a young age, the iron shell that has remained unchanged for decades, there is no innovation or change that we are talking about today. You don't improve, how can things get better and better?
I worked with Mr. Du Runsheng in the 1980s. Although he is an old cadre, his thoughts are very open. He took the lead to go to Guangdong to see it. Guangdong was just opened at that time. It was close to Hong Kong and many things came in.
Such an old veteran cadre saw an electric fan. When I came back, I said that this electric fan can be blown in the mosquito net, and the foot will stop when it kicks.
What is behind this? Human curiosity and learning heart.
Chinese poor are poor, but they are willing to learn, come to good things, there are many people wondering what is going on, pondering and pondering, just beginning to copy, many countries in the world say that we do not pay attention to intellectual property, but every country will Experience a stage of imitation.
Learning ability is a very important point in the future of a national economy.
Therefore, China relies on these three factors. It has been too poor to look back. As long as it is open, there is information, technology is available, there is opportunity to come, there is a market, and the economy is rapidly taking off.
2. The institutional cost of the reforms that fell in the past year has risen again.
Why is the market coming? Very simple, inexpensive, cost competitive. This talks about the characteristics of the Chinese economy. As of today, we rely mainly on cost advantages to establish a foothold in this world. Good or bad, this is a feature.
If you look at the scale of 30 years, the life of our generation has undergone unimaginable changes. Per capita disposable income has grown from $200 to $8,000 today. The closer we are to the developed countries, the closer we are.
But we also have problems internally. In the past 30 years, although the income of knowledge-intensive industries has grown rapidly, the faster growth is the income of power. In our current system, the power of the government is greater than that of other countries, and there is a lack of supervision.
The most terrible thing is that the institutional costs that we reduced through reforms have risen again.
Speaking of China's economy and rising costs, it will be said that labor prices have risen too fast. However, looking at the above table, everyone knows that labor prices are wages, which rises to be similar to nominal GDP.
What is the fastest rise? Taxation, statutory social security contributions, government revenue. After the anti-corruption of General Secretary Xi Jinping at the Third Plenary Session of the 18th CPC Central Committee, we saw how much money was eaten. Those bribes are all the cost of our national economy.
The economic growth is fast, the income growth is fast, and the cost advantage is lost. You used to rely on the cost advantage to eat. The most terrible thing is that our system costs rise too fast.
Therefore, the national economy has gone from such a bad situation to today, and only happens between generations. We are proud of it. What is the way out now? When your unique advantage is not obvious, you have to bet on the cost advantage. The most important thing to reduce costs is to continue the system reform.
Because institutional costs are the decisive variables of the Chinese economy, institutional costs are lower, and the economy is increasing; vice versa.
3. If the regulation is not reformed, the city will have no hope.
There must be rules in places with high population density, and the rules must have the ability to self-regenerate, and this process cannot be separated from the participation of all parties.
The city needs free development space
The connotation of the city is density, where people go to many places, and in a small space everyone is active. This brings up a problem. Everyone's activities are disturbing. My activities will affect you. The higher the density, the bigger the challenge.
There are certain rules for dealing with such problems. Urban society is stricter and more complex than rural society. This rule must have a lag when dealing with problems. With the changes in technology, economy, and ideas, should these rules be changed accordingly?
This question has an impact on whether a city can develop healthily.
There are several different perspectives involved. One is to emphasize strict management so that the city does not have much freedom. Another view is that although the city has strict rules and regulations, it still needs to guarantee freedom. Because urban society faces many problems, no one can know exactly how to deal with it in advance.
If in the development of the city, only the top-down rules, the rule of law, and the emphasis on autonomy, creativity, innovation, and entrepreneurship cannot be found, even if the city has a rule, it is stiff. It is not suitable for long-term development.
I myself prefer the latter view. I think the city still needs freedom. If there is no freedom to move, there is no city. This problem has not been completely solved today. Without land transfer, capital flow, and technical ideas, there will be no urban form. We must recognize that freedom must be based on the premise of not impeding the freedom of others. When dealing with complex issues, we must protect all aspects. We must add a lot of knowledge of past experience.
This semester I visited Columbia University. In 1916, New York City began to implement a zoning system. It passed the first comprehensive zoning regulations in the United States. This year is the first urban planning law to pass a hundred years. During the visit, there were a lot of questions to summarize, review and discuss, as well as to sort out the developments in the city of New York.
There is no regulation of urban development, and there is no control reform.
Today, I am talking about why regulatory reform is very important. Without regulation, it is even worse without regulatory reform.
In 1916, the emerging industries in the United States were developing. New York was an attractive city with dense population and higher buildings. If there is a problem after the building is high, there will be a neighborhood effect in economics. If it is too high, it will affect others, and the neighbors will not see the sun. Finally, this problem may become a social conflict and will challenge the original concept of land ownership.
How to resolve this conflict, the birth system of 1916 was born, which was divided into residential areas and commercial areas. After the partition, there are strict requirements on the construction height of the building. Population agglomeration, how to do if the developer wants to increase the height, and the land price is expensive to share the land price. In 1916, I thought of a way. After the building in the business district reached a certain height, it would shrink. Pull a spire in the direction. The purpose is to let the sun and air spill on the street. Don’t let your neighbors see you forever because you have tall buildings. To the day.
As time goes on, problems will still occur. Technology, elevators, and communications are all changing. This change requires the law passed in 1916 to begin to adjust. Why is it that entrepreneurship is very important, because the rule of law is law-abiding, and what is written is done, and the dynamic structure of future development will be lost. There are always some people who will be exceptional. The legal system is set in the past. Can there be any new circumstances today?
The sign event was that a company in the United States had to build a building at the time. The designer was a German and the director of the Bauhaus school. The Bauhaus school is characterized by simplicity and practicality, not to be arrogant. This kind of requirement is in conflict with the zoning regulations of 1916. If the building is more than 2.5 times and then the height is high, it will be shrinking. After shrinking, it is ornamental and has no function.
If there is no function, it is unacceptable to the Bauhaus school. Because of the long-term war, the buildings that are square and clear in the other side feel that they are practical. In addition, after the war, a large number of people need to live in permanent buildings, and it is a trend to remove the flowers and embroidered legs and decorations.
How to resolve this contradiction? The owner of the house found a compromise. When the house was retracted, the sun was coming in. It was possible to let the sun shine in by other means. The land is only half covered, and the remaining half is open to the public in New York as a public square, but the house to be built is higher.
The building was built in 1958. The negotiations were very hard. Later, this building became a landmark in New York, because there is a small park at the door open to all New Yorkers. Because of this small park, the entire Park Avenue has changed. At this time, a large number of new technologies, new ideas, and new changes have been generated. The New York City authorities revised the 1916 regulations based on this case. This planning method is very important, and it is worth learning as an economist.
The builders will open a square meter to the public, and the above building will be able to add 10 square meters of buildings to the public for a higher development space. In this way, the floor area ratio is well controlled, the market demand, the interests of the owners, and the interests of the public have found a balance point.
Let me summarize my opinion. There must be rules in places with high population density. This rule must be serious. However, with the changes of technology, ecology and concepts, the rules must have the ability to self-regenerate. The ability to regenerate cannot be separated from the participation of all parties in the world. A source of information sets things up, and it must be multi-party interaction.
When I visited the New York Museum, I found that many citizens participated in the construction of the city and made suggestions and suggestions. The rules for citizens to participate in urban design are generally easier and conscious to comply with. This will find a better balance between order and motivation, vitality and order.
(The author of this article: Professor, Ph.D., Dean of the National Development Research Institute of Peking University.)
AlNiCo material is comprised of aluminum,nickel,cobalt and iron with varying additions of other elements. There are two different manufacturing processes for AlNiCo:Cast and sintered. Cast AlNiCo can be made into many sizes and shapes,whereas Sintered AlNiCo is usually restricted to smaller sizes. However,both processes lead themselves to complex geometries and configurations. Standard Sintered AlNiCo has tighter dimensional tolerances due to its processing. It also has slighty lower magnetic properties,but better mechanical strength than Cast AlNiCo products. They are most suitable for small sizes that are less than 1 oz. It also results in parts that are structurally stronger than the cast Alnico Magnets. With the sintering process, one can achieve relatively close tolerances without any grinding.
Production: costing and powder metallurgy
Constitution: Al-Ni-Fe-Co
Performance: well performance in temperature stability
Processing: various sizes and shapes.
Application: Applied in instruments and other like fields..
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1. solid and breakable
AiNiCo magnets
In the 1930s, early permanent AlNiCo magnets came into being and predominated over the permanent magnetic material due to its excellent properties. AlNiCo Magnet is a kind of alloy formed by Al, Ni, Co and other trace elements. Its function and magnetic performance vary because of different compositions of metals. There are two kinds of production, costing and sintered. Through costing, magnets can be manufactured into various sizes and shapes. But sintered is suitable for making small size of magnets. The dimensional tolerance of blanks by sintered is better and more workable than that by costing, but the magnetic properties are slightly lower than costing products. Among the magnetic materials, AlNiCo magnets have the lowest reversible temperature coefficient, and its working temperature is up to 600 ℃. AlNiCo magnets are commonly applied in all kinds of instrumentations and other fields.
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Process flow sheet
sintered AlNiCo
Raw materials → ingredients → magnetic powdering → pressing →sintered → heating → magnets test → → products test → packing
Costing AlNiCo
Raw materials → ingredients → melting → costing → heating → magnets test → → products test → packing
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