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and I am confident towards a perfect solution of it.
Q: the criticism from the U.S. manufacturing industry towards Sino-U.S. trade deficit
has never stopped and recently they began an anti-dumping act against Chinese
furniture. Could you share your opinion about this with us?
The initial cause of Sino-U.S. trade deficit was the problem laid in their property
structure. According to economic principle, products that require labor-intensified
manufacture should be produced in a location with cheap labor. In this sense, due to
a high price of domestic labor cost, the U.S. has to import furniture from other
countries even though it excludes China from its importing list. There will be no way
out if the furniture manufacturers refuse to make a property reform but only rely on
trade protection. This will also applicable concerning other products manufacturing.
Q: there is famous saying that the ―stocks market is the weather glass of economy‖.
However, the Chinese economy keeps growing while the stock and change market
has stayed in downturn recent three years. why this could happen?
Lin: the key reason is that our enterprises that come into market bear different
characteristics compared with foreign enterprises. Our enterprises have mostly been
through a process of ―make-up‖ before coming into market. According to my own
investigation, there are 69 enterprises in A stock in Shanghai stock market in 1991
but now they all turned into valueless stocks. There are many causes to this, but their
remaining unchanged without any substantial reform should be among the major
ones. Furthermore, such enterprises can hardly reflect the real picture of the
development of every industries. So it is a matter of fact that the stock market did not
reflect the development of economy.
Q: do you think the exaggerations of the stock market have been completely ―shrunk‖
off now?
Lin: I don‘t think so. The profit per each stock is almost 50 times as high as its
original price. Such price is definitely abnormal. If the profit an enterprise wins stays
the same, to reduce in stock price will simply be of no use. In a word, to raise the
fixed asset quality should be the key factor.
Q: flashing back over your 50 years of unusual life, which choice is according to you
the most important one? Do you have anything to share with our overseas students?
Lin: the most important choice is when I finished my study, I chose to come back. I
like what I am doing now. My interests in theoretical research and contemplation
over practical problems helped me to prove my life value. The Chinese Economic
Research Institute of Peking University I directed is among the best research
environment in China. I think now is time for them to come home.
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