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In the course of more than 70 years of development, China Railway has been constantly reforming, and its basic direction is to move towards market-oriented. But at the same time, the inherent "people's attribute" or "public interest attribute" of railways in socialist countries contradicts the competitiveness of the market, so this is a special problem that China's railway reform needs to face in the future.
(1)Correctly handle the relationship between the market and the government. Whether it is a socialist country or a capitalist country, the relationship between the market and the government is an unavoidable problem in the process of economic development, and "visible hand" and "invisible hand" jointly promote economic development. To properly handle the relationship between the two, there must be basic theoretical support, which is summarized by General Secretary Xi Jinping: "Since the reform and opening-up, we have continued to expand the opening-up to the world, upholding the synergy between the socialist system and the market economy, not only giving full play to the decisive role of the market in the allocation of resources.At the beginning of reform and opening-up, there was a heated debate about whether market competition should be allowed in the socialist economic system. Looking back, this argument is of little significance. Because even according to the basic principles of Marxism, it recognizes the positive role of the market in creating vitality. Marx specifically pointed out the role of market competition: "Free competition is the real development of capital. It makes what conforms to the nature of capital, to the mode of production based on capital, and to the concept of capital, manifest as the external necessity of individual capital." This fully shows that in continuing to advance and deepen the reform of the party and state institutions, strengthening and optimizing the government’s function of maintaining market fair competition and antitrust has become an important direction for China’s new era of deepening reform, a new competitive development model respecting market laws, responding to market demands, and adhering to fair competition has suddenly appeared on the paper and come on stage formally.
Correctly handle the relationship between social public welfare and enterprise, unified transportation command and independent operation of enterprises, and correctly adhere to market-oriented; In the process of marketization, due to the different characteristics of railway transportation, industry, infrastructure, material supply, marketing, and various business enterprises, different policies must be adopted to promote reform. On the whole, the direction of marketization of China's railways will not change in the future, which is the core of reform. At the same time, the government will gradually remove the monopoly barriers in the railway industry. Whether foreign funds can enter the Chinese railway industry still needs time to verify, but at present, under the premise that the investment and financing field has been opened to local and off-road, it is very likely that private capital will be introduced into the railway industry.
(2)Correctly handle the relationship between new line construction and old line reconstruction. Since China's railway reform, an important issue surrounding its development has been how to deal with the construction of new lines and the reconstruction of old lines. The specific ratio between the two or the allocation of funds is a technical proposition, but we can discuss it from a macro perspective. The investment in railway infrastructure is a certain amount. Although the country's financial resources are gradually becoming abundant, the total investment is also continuously increasing. The investment budget for railway infrastructure in 2020 has exceeded 800 billion yuan. But in the long run, this total investment may not be able to maintain for a long time, and this growth rate may not be maintained for a long time, either. China Railway is both an object of macroeconomic regulation and control and a means of macroeconomic regulation and control. When the economy is declining and investment needs to be used to drive economic growth, the total investment in railway capital construction will rise substantially, as in 2008.
The construction of new lines is too fast, which leads to the transformation of existing lines cannot keep up, the function of the road network therefore cannot be fully utilized, and the additional investment will cause waste. On the contrary, railway transportation capacity and rail capacity will restrict the development of the national economy. On the whole, in the railway infrastructure investment in the first 30 years before the founding of New China, the new line construction accounted for 55.8% of the capital, the old line strengthened to 19.3%, locomotive and vehicle purchase and factory construction and others accounts for 24.9%. However, in different periods, the ratio is different. From the beginning of the founding of the People's Republic of China to the end of the Second Five-Year Plan period, the ratio of new line construction funds was 39.2%, while the old line was strengthened to 30.3%, which is 1.29 times as much as before. After the second five-year plan was completed, starting in 1962, the investment ratio of new line construction reached 60.6%, while the old line strengthened by only 16.8 over the same period, and the ratio of new to old reached 3.6:1. By the time of the third five-year plan and the fourth five-year plan, the ratio of new to old reached 6.5:1. In the early 1990s, the "new line construction supplemented" policy made China's railway transportation intensity and density both in the forefront of the world.
(1)Correctly handle the relationship between the market and the government. Whether it is a socialist country or a capitalist country, the relationship between the market and the government is an unavoidable problem in the process of economic development, and "visible hand" and "invisible hand" jointly promote economic development. To properly handle the relationship between the two, there must be basic theoretical support, which is summarized by General Secretary Xi Jinping: "Since the reform and opening-up, we have continued to expand the opening-up to the world, upholding the synergy between the socialist system and the market economy, not only giving full play to the decisive role of the market in the allocation of resources.At the beginning of reform and opening-up, there was a heated debate about whether market competition should be allowed in the socialist economic system. Looking back, this argument is of little significance. Because even according to the basic principles of Marxism, it recognizes the positive role of the market in creating vitality. Marx specifically pointed out the role of market competition: "Free competition is the real development of capital. It makes what conforms to the nature of capital, to the mode of production based on capital, and to the concept of capital, manifest as the external necessity of individual capital." This fully shows that in continuing to advance and deepen the reform of the party and state institutions, strengthening and optimizing the government’s function of maintaining market fair competition and antitrust has become an important direction for China’s new era of deepening reform, a new competitive development model respecting market laws, responding to market demands, and adhering to fair competition has suddenly appeared on the paper and come on stage formally.
Correctly handle the relationship between social public welfare and enterprise, unified transportation command and independent operation of enterprises, and correctly adhere to market-oriented; In the process of marketization, due to the different characteristics of railway transportation, industry, infrastructure, material supply, marketing, and various business enterprises, different policies must be adopted to promote reform. On the whole, the direction of marketization of China's railways will not change in the future, which is the core of reform. At the same time, the government will gradually remove the monopoly barriers in the railway industry. Whether foreign funds can enter the Chinese railway industry still needs time to verify, but at present, under the premise that the investment and financing field has been opened to local and off-road, it is very likely that private capital will be introduced into the railway industry.
(2)Correctly handle the relationship between new line construction and old line reconstruction. Since China's railway reform, an important issue surrounding its development has been how to deal with the construction of new lines and the reconstruction of old lines. The specific ratio between the two or the allocation of funds is a technical proposition, but we can discuss it from a macro perspective. The investment in railway infrastructure is a certain amount. Although the country's financial resources are gradually becoming abundant, the total investment is also continuously increasing. The investment budget for railway infrastructure in 2020 has exceeded 800 billion yuan. But in the long run, this total investment may not be able to maintain for a long time, and this growth rate may not be maintained for a long time, either. China Railway is both an object of macroeconomic regulation and control and a means of macroeconomic regulation and control. When the economy is declining and investment needs to be used to drive economic growth, the total investment in railway capital construction will rise substantially, as in 2008.
The construction of new lines is too fast, which leads to the transformation of existing lines cannot keep up, the function of the road network therefore cannot be fully utilized, and the additional investment will cause waste. On the contrary, railway transportation capacity and rail capacity will restrict the development of the national economy. On the whole, in the railway infrastructure investment in the first 30 years before the founding of New China, the new line construction accounted for 55.8% of the capital, the old line strengthened to 19.3%, locomotive and vehicle purchase and factory construction and others accounts for 24.9%. However, in different periods, the ratio is different. From the beginning of the founding of the People's Republic of China to the end of the Second Five-Year Plan period, the ratio of new line construction funds was 39.2%, while the old line was strengthened to 30.3%, which is 1.29 times as much as before. After the second five-year plan was completed, starting in 1962, the investment ratio of new line construction reached 60.6%, while the old line strengthened by only 16.8 over the same period, and the ratio of new to old reached 3.6:1. By the time of the third five-year plan and the fourth five-year plan, the ratio of new to old reached 6.5:1. In the early 1990s, the "new line construction supplemented" policy made China's railway transportation intensity and density both in the forefront of the world.