Demographic Dividend, Double Surplus With China’s Economic Growth

After the founding of new China, the state adopted a pro-natal policy of population,population resulted in a rapid increase in the number of.In the nineteen seventies,Chinese society has significant in young adults, there is a huge potential demographicdividend.After reforming and opening, agricultural management system reform and thecity state-owned enterprise reform to make potential demographic dividend graduallytransformed into real demographic dividend.Demographic dividend makes Chinesehave a high savings rate, but the imperfect financial system and the reform ofstate-owned enterprises has made the Chinese domestic savings in the domesticfinancial sector is difficult to directly through into investment.Finally, the surplussavings only through net export the form to achieve.Compared with the developedcountries of high consumption, low savings and economic development mode forChina’s net exports provided a huge market, so that China’s net exports to the smoothrealization of.The result of this process is China has seen a massive current-accountsurplus.A huge number of labour makes China look from whole capital relative to labormore scarce, and the imperfect financial system but also makes the limited capital forstate-owned enterprises.This situation caused by private enterprise capital more scarce,eventually making Chinese capital in civilian battalion economy is very expensive, thiswill inevitably lead to Chinese folk capital profit rate is very high.High profit rate ofcapital in open economies will attract a lot of foreign capital.At the same time, thedeveloped countries to take a low interest rate policy, the two aspects of the interactionultimately makes the foreign capital inflows to China, it will inevitably lead to China’scapital account is surplus.Of course, in this process, Chinese local government to giveforeign various preferential policies to further improve the foreign investment in China’srate of profit.This further increases the inflow of foreign capital in China’s scale, alsoincreased the capital account surplus scale in china.Double surplus on the surface means China is inefficient use of scarce capital, whichis disadvantageous to China’s economic growth, however, if taking into account thelabor natural resources cannot be deposited, double surpluses reduces the waste of laborforce resources.Secondly, in the double surpluses in China, labor through dry middleschool, have learned a great deal about the production of knowledge, management skills,improve the technical level.In third, double surplus shows China’s marketization policyallows a variety of resources especially labor can flow freely in the market, looking fora better configuration.The above three aspects are the demographic dividend and strongexternal demand under the condition of double surplus is conducive to China’seconomic growth performance.At this point, double surplus is conducive to China’seconomic growth.This is also China’s process of growth of economic high speed longdouble surplus phenomenon.Therefore, China for foreign various preferential policiesalso have its rationality. In2008the global financial crisis, the world economic situation has undergonetremendous and profound changes.The developed countries begin to change the highconsumption, low savings and economic development mode, reducing consumption,increasing savings.This will lead to reduced demand for Chinese exports.At the sametime, China’s population situation has undergone profound changes.China s populationbonus began to appear inflection point.This means that the surplus of labor resourceswaste began to gradually reduce, which previously taken the policy of foreign capitalprivilege will gradually lose rationality, must adjust to its.At the same time, Chinashould also be on the financial sector reform, improve financial efficiency, make itbetter for Chinese economy growth.