China: Economic Growth And Systems Innovation

The more than 20 years of carrying out the open and reform policy in China is just the process of system innovation.lt is the most fundamentally basic experience during the past more than 20 years because China's economy has been developed sustainedly and fast. Today, it is even more necessary to study the relationship between economic growth and system innovation because China is now in the process of economic transition and system reform.It is through the property right, the country and the ideology that system can promote economic growth. Economic growth depends on not only the investment and the technology innovation but also the systematic environment of the economic activities. System innovation change the motivation mechanism of the investment which change matters whether the nvestment can get the positive returns,i.e., the source of economic growth. Technology, in other words, the creativity and the innovation in the treasure house of human's knowledge, can be used effectively and correctly only if the system and ideology can spur the economic growth.System is the endogenous variable in the economic growth. This can be verified by the practice of the countries of all of the world. We can even more clearly realize this through the practice of China's reform: Since 1978,sytem has played an important role in China's economic growth. On the one hand, the achievements derive from the great energy let out from the incentives of the economic system to the overall economy; on the other hand, the problems China are facing now due to the incomplete old economic system or the conflict between the old and the new system. However, not only the process of China's economic growth takes on a market feature but also the creating of the basis of the economic operation mechanism which is different from the old planned mode helped the country to come true the aim of the macroscopic regulation policy. All of the achievements mentioned above attribute to the deep and crucial change in China's ownership structure reform. We may draw the conclusion that there exists a close linkage between China's economic growth andsystem safely innovation.In the days to come, China will have more chances and greater potentialities in economic growth. To make our national economy grow in a stable and healthy way, we must further make an overall and deep system innovation. How to construct the configuration of our system innovation? This paper gives some feasible advice: To pull the investment and create the demand through reform. To promote our state-owned enterprise to reform and develop actively through setting up the modern enterprise system; In addition, share system is an inevitable tendency of enterprise reform. To speed the adjustment and the reform of the ownership system in order to set up a system which include many ownerships circling on the public ownership. To open market further, build and better market system into a unifying, fairly competitive and orderly standard way. To strengthen and improve macroscopic regulation. In order to perform well in the WTO, we must set up economic trade system in correspondence with world rules and fragile macroscopic economic management. Only by doing these can we promote our economic growth in a sustainable, fast and healthy way.