Wu Xiaoqiu of Renmin University: Asking about the purpose of withdrawing money from a bank seriously violates the people's right to privacy

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2024-07-20 15:17Posted on the official account of Tencent News in Beijing

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01 Wu Xiaoqiu, a professor at Chinese People's University, said that the use of money withdrawn from banks seriously violates people's right to privacy, and the rule of law is of great significance to improving people's expectations and promoting economic development.

02 He believes that China's economic problems do not arise in the factors of production, but in confidence and expectations, and confidence comes from the rule of law.

03 Wu Xiaoqiu pointed out that the Third Plenary Session of the 20th Central Committee of the Communist Party of China particularly emphasized that China should emphasize the role of the rule of law in the future to solve China's economic problems.

04 He called for attention to the role of external demand, believing that China's huge production capacity needs to be digested by external demand, and at the same time, it can be fully integrated into the international community in order to achieve Chinese-style modernization.

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Tencent News "Frontline"

Written by Feng Biao and edited by Liu Peng

"Go to the bank and deposit money, and the bank will ask you where the money comes from? If you want to withdraw money, you will be asked if you want to withdraw money. Of course, this seriously infringes on the people's right to privacy, and any policy rules are allowed within the framework of the law, and cannot exceed the law. ”

On July 20, at the China and Global Economic Forum, co-sponsored by the China Institute (ICE) of the School of Economics and Management of the University of Hong Kong and the China Macroeconomic Forum (CMF) of the Chinese University, Wu Xiaoqiu, dean of the National Institute of Financial Research of the Chinese University of China, used the example of withdrawing money from banks to deposit money, explaining the importance of the rule of law in improving people's expectations and promoting economic development. Wu Xiaoqiu believes that the source of expectation and confidence is the rule of law.

Regarding the Third Plenary Session of the 20th Central Committee of the Communist Party of China held recently, Wu Xiaoqiu explained that it also emphasized that China should emphasize the role of the rule of law in the future.

The following is the original text of Wu Xiaoqiu's speech:

At present, the most important issue in China's economy comes from the people's confidence and expectations.

There is no shortage of market mechanisms in China, and we have learned it for more than 40 years. China also has an international perspective, and after joining the WTO, we can understand the rules of international economic operation. China is not short of diligence, and the Chinese nation is the most diligent nation. China's economy does not even lack wisdom, the Chinese are very smart and wise, and we learn all good things. More than 40 years ago, China was of course short of capital, and our little foreign exchange reserves, that little bit of residents' savings deposits, could not bring China into modernization. Therefore, at that time, Comrade Xiaoping promoted reform and opening up, set up special economic zones, and attracted foreign investment, technology, and talent. In a sense, we don't lack most of the technologies except for some of the key areas that we lack.

What I want to say is that we are well endowed with these factors of production. Of course, I also saw the data from the National Bureau of Statistics, and from the macro data, it is not so bad. Although 5.3% in the first quarter, 4.7% in the second quarter, and an average of 5%, it is not bad from the average concept, but it is a bit worrying from the concept of trend, and there are other indicators, which will not be expanded here. You will find that it is not too bad, if you look at these data, it is relatively good in the world's major economies. That's a big concept for an economy of $126 trillion, and we're not a small economy in the past.

But there is still a gap with our microscopic feelings. How to balance this "temperature difference" at the macro and micro levels is a task that needs to be explained somewhat. I don't doubt the macro data, and I don't doubt the micro feelings, so China's economic problems do not appear in the factors of production, but must be in confidence and expectations.

Where does faith come from? From the rule of law, when people have a sense of security and a basic bottom line, people will have confidence.

I am glad to see that although the full text of the Third Plenary Session of the 20th CPC Central Committee has not been released, the press release has come out. As we can see from the press release, it also emphasizes that China should emphasize the role of the rule of law in the future, which is the essence of China's economic problems. If the rule of law is not perfect, it will be difficult for our various elements to play a role, and in China's reality, there are indeed many violations of the law and many violations of the law.

In life, everyone can feel it. For example, you can see that the bank that wants to deposit money will ask you where the money comes from. If you want to withdraw money, you will be asked what you want to do with it? This is very frightening, of course, it seriously infringes on people's right to privacy, and any policy rules are allowed under the framework of the law, and cannot go beyond the law. Where does my money come from and what do I withdraw it for? It's not something you can do at all. If he is a corrupt official, has his own Central Commission for Discipline Inspection, and has the law to control him, it is normal for ordinary people to take money from their income to do some normal financial activities. So, in China, it will arise and ask where to get the money and what to do with it? He said, "I'll take it out and put it in the bank across the street." I ask you again, why did you put it in the bank opposite? Because the bank across the street gave me a barrel of oil. Okay, I'll give you a barrel of oil too, can you not take it? Such a strange phenomenon will occur.

But where there is a strangeness, there must be a demon. Because this behavior does not conform to the basic characteristics of modern society, we want to ask what is the reason behind this. There is also a need to sign at the police station to withdraw money, which is also very strange. This phenomenon is everywhere. Therefore, a perfect rule of law is the standard of modern society and the symbol of civilized society. If we want to modernize our country, we must start with the rule of law.

Sometimes, I think that a country will prosper if it has a good rule of law, a basic social order, a low-cost tax burden, and a system that inspires people to move forward. You can rest assured, it's not the people sitting in the office who are there to point fingers, you have done these four well, you have to consider that everyone is very rational. Everyone is rationally working hard to increase their income, which is not bad, and increasing their income is also in line with our original intention. It's very good for companies to increase their profits, to make money. Adam · Smith said that it may be a poisonous flower, but it bears a beautiful fruit. Therefore, we still need to have a deep understanding of the basic principles of the market economy.

We sometimes take it for granted, and we always think that people's subjective will is very strong and can manipulate the economy, but I never think so. I have always believed that the source of China's sustained economic prosperity comes from the sound rule of law and the institutional platform that conforms to the principles of modern market economy, which are very important. I don't think it's due to frequent policy adjustments.

In my underlying thinking, I attach great importance to the role of the rule of law and institutions, and policies only play a fine-tuning role under the framework of the rule of law and institutions. Anyone who has studied economics knows that it cannot determine everything, and if a country's economy is affected by frequent policy adjustments, in fact, the country's economy will be in fluctuation, and this fluctuation is not cyclical, not caused by cyclical factors.

I have said on many occasions that a large part of China's economy does not depend entirely on the economic cycle, and this is the profound reason why our economic policies and frequent adjustments are difficult to achieve. You can't help but say how hard we have worked in the recent period, including the National Development and Reform Commission, working overtime every day, introducing policies, stimulating consumption, stimulating real estate, you will find how to stimulate just like that, do you think that people will buy houses when the down payment drops to 15%? It's not like that, it has an expectation. Leverage comes into play only when there is anticipation. When there is no expectation, when the expectation is weak, the effectiveness of leverage will be greatly reduced. This is the basic principle of the modern economy, which is to respect the role of laws and institutions. Don't take the policy so seriously, the role of respecting the law and the system is actually respecting the role of the market, that is, believing in the power of people's rationality, we must believe that people are rational, with this people will make scientific decisions, for the future, on risks, he will make a good judgment. Therefore, the system and the law are the forces of the market and the forces of reason.

The role of policy, I can't say that it doesn't work, of course it works, in modern society, because from the perspective of the big cycle, it will have some imbalances, so there will be some necessary macroeconomic control policies, to give some macro guidance, which is very important, the achievements of China's economic development have this factor. But let's not be superstitious about it, thinking that it can solve all problems, so we go back to the track of the rule of law and the market, and China's economy will be rejuvenated.

This includes the role that we attach importance to external demand, China has a huge production capacity, production capacity can not be removed passively, but also gradually expand all the demand including external demand, internal demand is important, the expansion of internal demand needs to increase employment, income growth and stock wealth appreciation, these three factors are important factors for the growth of internal demand. Even one of them will do. You say that my income has not increased, which is fine, but the increase in the stock of wealth can also drive demand. If there is no increase in the stock of wealth, incomes are shrinking, employment is very difficult, and consumption cannot grow. This is all common sense in economics.

For China, external demand is particularly important, and we must not think that China's economy can consume on its own as it expands, and it will not be able to complete the balance of these excess supply capacity, and China is still a country where investment plays a very important role in promoting economic growth. So, it needs external demand to be a very important aspect of digesting a strong supply capacity. Therefore, I particularly emphasize the importance of external roles. Although internal demand is important, it does not mean that it can replace external demand, which is not only an expansion of total demand, but also provides a new standard.

In fact, we have not formed international standards in many fields, and many fields still have to operate according to international standards, so it is very important to expand opening up in accordance with standards. At the same time, only continuous integration into the international community can play a better role in the international community. Sometimes I am also very worried, many people think that China is okay, the outside is not important, this is not to see how important opening up is to the future of China, opening up is the greatest reform, the most profound reform, only when Chinese society is fully integrated into the international community, can we effectively and smoothly achieve Chinese-style modernization.

This is what I understand as the importance of the rule of law, institutions and openness. Thank you.

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