E. S. BAZHENOVA

Doctor of Economics

Keywords: results of the 11th five - year plan (2006-2010) of the People's Republic of China, plan for the 12th five-year plan (2011-2015), China in the world, agriculture, industry and transport

The annual scientific conference of the Center for Economic and Social Research (CESIC)was devoted to the results of socio-economic development during the last, 11th five-year plan (2006-2010) and prospects for the country for the next, 12th five-year plan IDV RAS.

The conference was opened by the head of the Central Economic Research Institute of the Russian Academy of Sciences, Doctor of Economics, Professor A.V. Ostrovsky, who in his introductory report noted that the experience of Chinese reforms is the experience of a painless transition from a planned to a market economy, entering the trajectory of high economic growth, which has been going on for more than 30 years.

Socio-economic indicators of China's development during the 11th five-year plan (2006-2010) demonstrated all the advantages and disadvantages of the Chinese model of economic reforms, the so-called Beijing consensus, as opposed to the Western model of reforms (the"Washington consensus"*).

Preliminary results of the Chinese experience of overcoming the crisis in the context of the transition from a planned to a market economy once again showed us the attractiveness of the Chinese reform model, which is based on the principle of a gradual transition from a plan to a market, during which the state plays an active role.

At the 4th session of the National People's Congress (NPC) of the 11th convocation (March 2011), reports on the work of the Government of the People's Republic of China, on the country's economic development plan in 2011, and the main provisions of the plan for the 12th five-year plan (2011-2015) were discussed. and the draft of the 12th five-year plan for Socio-economic development of the People's Republic of China was discussed at a meeting of the Politburo of the CPC Central Committee. The leaders of the Communist Party of China noted the growth of the country's productive forces and state power in general, the improvement of the living standards of the population and the strengthening of China's international influence on the world stage.

After the meeting of the Politburo of the CPC Central Committee, Premier Wen Jiabao held an interactive conversation with the public to identify public opinion on the progress and results of the reform. During this conversation, he emphasized that "the main task of society's development for the 12th five-year plan is to increase the standard of living of the population, improve the quality of life so that the population feels confident in the future." To solve this problem, it is planned to accelerate the transformation of the economic development model, move from an export-oriented approach to boosting domestic demand, and more actively attract private investment in the development of the economy.

Based on the results of the socio-economic development of the People's Republic of China in the 11th five-year plan, the following conclusion can be drawn:

China emerged from the global financial crisis with the smallest losses compared to most other countries in the world, which is due to the specifics of the country's model of economic reform of the transition to the market.

This Chinese model of transition to the market is aimed more at the development of the real economy, i.e. the 2nd sphere (industry and capital construction), rather than the 3rd sphere, which means the creation of a large number of financial instruments (stocks, bonds, bills of exchange and other derivatives**), which are largely disconnected from the development of production.

When analyzing the current state of the Chinese economy, three main questions should be raised::

- how the dynamics of GDP growth and key economic indicators are changing;

- what is the impact of the global economy on the Chinese financial market (banks and equity markets) and the domestic market (consumer demand and prices)?;

- what changes are taking place in China's foreign economic relations?

The average annual GDP growth rate over the years of the 11th five-year plan was high, and the PRC ranked 1st in the world in terms of GDP growth: in 2006-12.7% (21.6

* "Washington Consensus" - a set of neoliberal recipes for economic development: liberalization of financial markets and foreign trade, free exchange rate, regulation of the economy, etc. (editor's note).

** Derivatives - financial securities that are derived from the value and characteristics of another security (the underlying asset).

in 2007 - 14.2% (26.6), in 2008 - 9.6% (31.4), in 2009 - 9.2% (33.5), in 2010-10.3% (39.8). During the reform years from 1978 to 2010, GDP grew tenfold. At the same time, production of almost all types of industrial and agricultural products continued to grow steadily.

A set of measures to control the formation of a market economy during the transition from a planned economy has yielded concrete results over 30 years of reform, expressed in high average growth rates of gross domestic product, a decrease in the share of state budget expenditures in GDP, a significant increase in investment in fixed production assets and a constant increase in their share in GDP, while maintaining low inflation.

Over the years of reforms in China, we have managed to meet 3 important challenges in curbing the growth of inflation in the country:

- keep the share of cash in circulation to GDP at the level of 13-15%, and further reduce to 11-12%;

- maintain the share of state budget expenditures in GDP at the level of 20-22% (with a forced anti-crisis growth in the share of public expenditures in 2008-2009).;

- to increase the share of investments in fixed production assets from 24.2% of GDP in 1990 to 57.3% in 2008 and to almost 70% of GDP in the following years-2009-2010-as part of the anti-crisis measures taken.

According to statistics on income and expenses of financial institutions for 2009-2010, the determining factor in the stability of the financial system of the People's Republic of China is the presence of a huge mass of deposits of individuals and enterprises on bank deposits - 73.3 trillion yuan (over 75% of all cash income of financial organizations and institutions), of which the balance of funds on RMB3. 7 trillion, and household deposits - RMB3. 7 trillion*. At the same time, the balance for all types of loans issued for 2010 The total loan turnover was 50.9 trillion yuan, of which 17.1 trillion were short - term loans, and 30.5 trillion were medium - and long-term loans. Thus, the country has developed a fairly stable financial system, which, as the global financial crisis of 2008 showed, turned out to be immune to the situation in the global financial system, both due to the incomplete convertibility of the yuan, and due to huge savings on the accounts of enterprises and the population.

The main goal of the Chinese economic reform was not to liberalize the economy as an end in itself, but to raise the living standards of the country's ever-growing population based on the comprehensive development of production. Although the state released itself from constant control over the activities of economic agents, this was done gradually, in stages, over many years. At the same time, the state used various economic levers to maintain control over the main sectors of the economy (fuel and energy, transport, banking). At the first stages of the reform, due to fixed prices for the products of these industries, it created conditions for the creation of enterprises of various forms of ownership and market competition between them. Only after a competitive environment was formed in a particular branch of the economy, the state began to exempt prices for fixed assets of production.

One of the main tasks of the reform was the formation of a market infrastructure. To address this issue, the Chinese leadership paid special attention to the three main components of the market infrastructure-investment demand, the domestic market and the pricing system.

China's experience in the field of market transition and price liberalization shows that the main thing in market conditions is the formation of a pricing mechanism, as well as state control over prices in the presence of a buyer's monopoly (state purchases of agricultural products).

At the same time, it turned out to be necessary to maintain a "two-track" system of prices for means of production for a rather long period of time, and to eliminate this system as the institutional foundations for the functioning of the market pricing mechanism were formed.

The Chinese leadership's current policy of fully expanding domestic demand is largely driven by the need to create favorable conditions for the implementation of the tasks set at the 4th session of the National People's Congress. China's relatively low income level and underdeveloped social security system, especially in rural areas, lead to the fact that the population is used to limiting their spending. At the same time, the share of household savings in GDP is extremely high, currently amounting to about 75%. As for the expansion of the domestic market with limited export opportunities in the context of the crisis that has not been fully overcome, it is possible only by increasing the income of the population and increasing the share of consumption in the national income of the country.

China will use both economic and legislative levers to regulate prices in the 12th five-year plan, as well as direct administrative measures to regulate and control prices. In general, the country remains socially stable, which is determined by the rapid growth of production, the stability of the financial system due to large amounts of bank deposits and the relatively small dependence of the Chinese economy on the external market.

Moreover, in the years of the 12th five-year plan, a further departure from the orientation of products to export is envisaged, a transition to the expansion of the domestic market and the growth of domestic demand. It means that the constant growth of incomes of the huge population of the country may well provide a certain independence-

* As of 20.04.2011, the official exchange rate was: 10 yuan - $1,5308 (editor's note).

dependence of the Chinese economy on market fluctuations in the global market.

In the course of reforms since the late 1970s, China's foreign trade has gone through three successive stages of transformation, which have had a certain impact on the export structure, and entered the fourth phase associated with joining the World Trade Organization (WTO). Preparations for WTO accession led to the development of appropriate measures in the internal economic mechanism, which provided an accessible level of foreign trade liberalization for the PRC, and contributed to the formation of an open economy integrated into the world economy. An important aspect of the socio-economic development of the Chinese economy at the beginning of the XXI century was the course of "going outside" (zouchuqu), which was proclaimed at the 2000 session of the National People's Congress in the field of foreign economic relations.

As a result of the openness policy implemented in the course of the reforms, within the framework of which the "go outside" strategy is being implemented, there was a sharp increase in the volume of foreign trade - from $20.6 billion in 1978 to $2972.8 billion in 2010 (144 times). Both exports and imports have grown significantly over the years. China has moved from exporting primary processed goods (raw materials) to primarily exporting machine-building products, new and high technologies. Various factors played a significant role in this, starting from the expansion of the rights of enterprises in the sphere of foreign economic activity at the first stage of the reform and ending with China's accession to the WTO.

As a result, the dependence of the Chinese economy on foreign trade has significantly increased in recent years. If in 2001 (the year of joining the WTO) the share of foreign trade in GDP was 38.5%, then in 2006 it was already 66.5%, and as a result of the factors of the global financial crisis, by 2009 it had fallen to about 44%. However, in the following year, the share of foreign trade in GDP increased again to 49.5%, but more due to an increase in imports.

In recent years, China has significantly reduced its foreign trade with the United States and the European Union. At the same time, it actively develops trade with the countries of the Association of Southeast Asian Nations (ASEAN) and economically developed countries and territories of the Asia-Pacific region - the Republic of Korea, Taiwan and Hong Kong, which were less affected by the global financial crisis, as well as with African countries, India and Brazil. In early 2010, after the establishment of the ASEAN + China Free Trade Area, China's foreign trade orientation towards the ASEAN countries became even more pronounced. In our opinion, under certain conditions, China may be able to get rid of the dependence of the Chinese yuan on the US dollar, and after switching to full convertibility of the yuan and expanding exports to Southeast Asian countries, eventually turn the yuan into a reserve currency in the Asian part of the world - in the countries of Southeast and Northeast Asia.

Foreign direct investment in the Chinese economy continued to grow, reaching $105.7 billion in 2010. At the same time, most of the foreign investment went to the manufacturing industry - $49.6 billion (46.9% of the total volume) and in real estate - $24.0 billion (22.7%). At the same time, China continued to implement the policy of "going outside" by increasing the volume of direct investment abroad - $59 billion. in the same year, 2010, which significantly exceeded the figures of 2008 - $41 billion and 2009 -$43.3 billion.

According to Chinese statistics, the majority of direct investment from China went to Asian countries - 71.4%, as well as to Latin American countries-13.4%. Due to the global financial crisis, China has had problems selling its export products, especially to the most affected countries of the EU, the United States and Japan. Under these conditions, the PRC managed to partially reorient its exports to the ASEAN and BRIC countries, as well as direct some of the goods intended for export to the domestic market.

Summing up, the speaker concludes that the opinion of the group of experts who believed that China would be one of the first to overcome the negative impact of the global crisis and with the best economic performance was fully justified.

* * *

The reports of other participants of the conference were grouped by the following topics: general problems, China in the world, agriculture, industry and transport.

As part of the discussion of general problems, reports were given by Y. M. Berger, V. Ya. Portyakov, A. I. Salitsky, O. N. Borokh, V. V. Zhiguleva, L. I. Kondrashova, I. V. Bakhrushin, V. V. Karlusov, and V. V. Chuvankova.

In his report "Long-term Strategy of Russia and China: results of implementation", Deputy Director of the Institute of Economic Development of the Russian Academy of Sciences, Doctor of Economics V. Ya. Portyakov compared the directions of socio-economic development of the two countries and the methods of implementing their reforms. The author cited statistical data confirming the upward trend of China's development. In the 1990s and at the beginning of this century, GDP increased 2.7 times; foreign trade increased 6 times; China became the world's factory for the production of many types of industrial products. According to the speaker, the development of the PRC is not free from some shortcomings and vices: the pursuit of high growth rates generates many negative consequences; the presence of an investment bubble; the trend of using someone else's intellectual property has not been reversed.

As for the Russian Federation, the author draws attention to the fact that in the course of ill-conceived reforms, a significant part of the old industry was lost, but new sectors of the economy were not created. Russia has lost many foreign markets and its own

domestic market, a lot of imported goods are purchased. As a result of the global financial crisis, the country suffered almost the greatest damage among emerging market countries. The Concept of Development of the Russian Federation until 2020 provides for establishing cooperation with the PRC, but currently the share of the Russian Federation in China's foreign trade is only 2%, and in the current situation, the question arises: will this be co-development or drawing Russia into the Chinese economic space, which may lead to an increase in Russia's dependence on the PRC?

The discussion of the report "Dynamics of GDP growth in China in the 12th Five-year plan: Opposing approaches"J. M. Berger, Doctor of Economics, in which the author outlined two positions regarding the economic growth rate in China, aroused great interest.

The first of them is typical for the top party and administrative leadership, it is a line to reduce (from 10% to about 7%), which is necessary to change the model of economic growth. The goals set by local authorities differ from these intentions : in a number of provinces, GDP is planned to double during the 12th five-year plan. This is especially typical for new technology development areas - for example, in Shenzhen, the growth rate is about 10% (development of new economic sectors), in Binhai zone in the vicinity of Tianjin-17%, which is also associated with a high share of new industries, the share of which is 40%. The prospects for the transition to a new model of socio-economic development, which requires consolidating the deceleration trend, largely depend on whether the central authorities will be able to defend their position and convince local leaders of the need to implement a unified policy aimed at slowing down economic growth in order to reorient to an innovative model.

"On the characteristics of the Chinese development model" - this report was made by Doctor of Economics A. I. Salitsky. The author drew attention to the fact that in the first decade of the XXI century. China has achieved a significant acceleration in economic growth on the basis of a high accumulation rate, rapid industrial development and scientific and technological progress, as well as an active foreign economic policy. In general, we managed to increase the efficiency of the economy, maintain financial stability, and maintain a relatively low level of inflation. The systematic actions of the PRC leadership made it possible to ensure the stable development of not only its own economy, but also to create stability zones in the economies of closely cooperating countries and territories. At the same time, Chinese corporations and banks have become world leaders.

A significant contribution to economic development was made by the financial system of the People's Republic of China, in which state-owned banking institutions play a leading role. Almost all of them have completed their rehabilitation and become joint-stock banks. Long-term financing is effectively provided by development banks, which are also actively involved in external expansion. China's credit institutions, while maintaining a moderate loan interest rate, serve as a reliable support for the real sector of the economy, while successfully competing with foreign institutions in the domestic and foreign markets. The stock market has served as an effective tool for well-thought-out privatization programs, and now it is also becoming an instrument of innovative development.

Dr. V. V. Karlusov"Partnership between Government and Business in the PRC" examines the evolution of the PRC's policy towards private entrepreneurship in the 2000s.A comparative analysis of the dynamics of entrepreneurship development during the 10th and 11th five-year plans is presented. In accordance with the general approaches of world economic science and applied to the national specifics of the PRC, the categories of "government-business partnerships" and "public-private partnerships"are considered. The article evaluates the compliance of the emerging Chinese strategy of partnership between government and business and the anti-crisis measures taken by the Chinese leadership in 2008-2010.

V. V. Chuvankova"Development of private entrepreneurship in China during the 11th five-year plan (2006-2010)", which was similar in subject, aroused great interest and lively discussion. The author noted the rapid development of the individual and private sectors of the economy during this period, as a result of which more than 42 million private enterprises and enterprises were created. individual commercial and industrial enterprises, and the number of employees in them exceeded 180 million people. Over the years, the economic potential of private enterprise structures has significantly increased, and their spheres of activity have expanded, including in monopoly and innovative industries.

The individual and private sectors have not only become an important force for stimulating the country's economic growth, increasing tax revenues, expanding exports, and increasing employment, but have also made a significant contribution to overcoming the effects of the global financial crisis and ensuring China's stable socio-economic development.

Over the past five years, the average annual growth in the number of individual commercial and industrial farms amounted to 6.7%, private enterprises-11.7%, tax revenues-22.2%, which is 12.7% higher than the public sector. Compared to the end-2005 figures, the number of individual enterprises and their authorized capital increased by 38% and 124%, respectively, reaching 34 million rubles. farms and 1.3 trillion yuan. The number of private enterprises increased by 95% to 8.4 million, and their authorized capital increased by 210%, exceeding 19 trillion yuan.

It was decided that in the coming years, the country's economic development should be based primarily on such factors as scientific and technological progress, professional development of workers and innovative management. Special offer

During the 12th five-year plan (2011-2015), attention will be paid to the development of innovative potential of private enterprise structures. Private national capital is already actively involved in the implementation of the state's innovation program, the restructuring of the industrial structure, and the process of reforming monopoly industries.

O. N. Borokh"Main trends in the development of economic science in the PRC in the post-crisis period" reviewed the leading topics of Chinese economic science in 2008-2010: understanding the global economic crisis and analyzing China's success in overcoming its negative consequences. Scientists focused on the lessons of the global crisis, and attempts were made to theoretically comprehend the experience of China and identify elements relevant to the development of modern economic science as a whole. Along with research focused on the standards of Western economics, China has intensified its work on the problems of Marxist political economy. The main topics of political and economic discussions in 2010 were the "Chinese model" of development, the relationship between the state and the private sector, and income distribution. Scientists discussed ways of developing political economy in the post-crisis period, the situation with teaching political economy in China.

Doctor of Economic Sciences L. I. Kondrateva spoke on an important topic-new trends in the field of administrative reform, which boils down to the transition from the "city governs counties" scheme to the "provinces govern counties" scheme, which led to the unification of cities with counties and greater opportunities for cities to dispose of financial resources, which, in the author's opinion,led to the creation of a new system of This is a positive aspect of China's development.

In his report "Results of the development of the securities market of the People's Republic of China in the 11th five-year plan, prospects and development tasks for the 12th five-year plan", Ph. D. I. V. Vakhrushin emphasized that the quantitative indicators of the development of the stock market of the People's Republic of China in 2006-2010 were multidirectional, which is due to a significant speculative component in exchange trading, and the impact of the global financial crisis. The most important achievements in the development of the stock market in the 11th five-year plan are related to the completion of the share capital reform of listed companies (in terms of non-market shares), the successful reorganization and consolidation of the securities sector, the launch of the market for high-tech medium and small companies on the Shenzhen Stock Exchange, as well as the beginning of an experiment to introduce a margin trading regime. The key objectives of the 12th five-year plan are to complete the construction of a multi-level securities market, further diversify financial instruments, and allow foreign companies to list on the stock exchanges of the People's Republic of China.

Ph. D. in Economics V. V. Zhiguleva in the report "Harmonious combination of three types of demand - the main factor of growth of the Chinese economy" emphasized that before 1978 the Chinese national economy was a closed-type economy. In the subsequent period, the country's leadership began to pursue a policy of openness, expanding foreign trade and encouraging the rapid development of foreign economic cooperation and cooperation. The combined impact of domestic and external demand has become the main feature of accelerating the development of the Chinese economy.

4 reports were presented at the section "China in the world". D. V. Gordienko's report was devoted to the analysis of the causes of the global financial and economic crisis and its impact on the economic security of the People's Republic of China.

In accordance with the anti-crisis strategy adopted by the leadership of the People's Republic of China, the primary task was to ensure sustainable and relatively rapid development of the country's economy. The main condition for solving this task was to expand domestic demand; the main direction was to accelerate the transition to a new growth model and regulate the structure, and implement reforms in the "key links". The main driving force was declared to be increasing the level of openness, and the starting point and support was improving the life of the population.

At the same time, the central and local authorities were instructed to strive to fully increase domestic demand, which, in the face of falling Chinese exports, could actually support production growth and employment, ensure the continuation of economic reforms, preserve the country's payment system, mitigate existing social problems and create conditions for subsequent economic growth of the country.

The Chinese government, resorting to rapid, powerful and state influence on the national economy and striving to fully revive domestic investment and consumer demand, does not lose sight of the international aspects of these actions and is already trying to lay the foundations for a significant strengthening of China's position in the post-crisis world, taking appropriate practical steps for this. Thus, the financial and economic crisis certainly made adjustments to the prospects for China's economic development and changed the level of China's economic security in the next decade. At the same time, the impact of the crisis on the country's economic security was not so significant.

Anti-crisis measures of the Chinese government, policy speeches of high officials of the People's Republic of China, and policy materials indicate that China will continue to pursue an active financial policy in order to ensure the development of the economy.-

* Admitted to exchange trading (approx. ed.).

of the country's payment system, purposefully engage in macro-regulation, implementing programs of "unified urban and rural planning" and coordinated development of the country's regions, improving the structure of the economy, "ways of economic development", while paying special attention to innovation, energy saving and environmental protection. China believes that " the global financial and economic crisis creates favorable conditions that need to be skillfully used." In this regard, increasing domestic demand, which guarantees the successful development of the country's economy, will remain among the top priorities in the Chinese government's plans to ensure the state's economic security in the near future.

T. G. Terentyeva"The growth of Chinese investment abroad in the 11th five-year plan" addressed issues related to China's investment activity abroad, which has been in a rapid growth stage since 2006, as a means of integrating China into the world economy. It is noteworthy that investment growth trends exceed the increase in macroeconomic indicators. The volume of investments increased from $17.6 billion in 2006 to $59 billion in 2010 (the volume of accumulated investments increased 3.5 times by 2009, and the PRC ranked 4th in the world in terms of investment); the average annual growth over the five-year period was 38.8%. The plans for the 12th five-year plan provide for a twofold increase in investment, up to $100 billion. Currently, China places its investments in 177 countries and regions of the world, and investment protection agreements have been signed with many countries. This policy has raised China's rating as a global investor.

A. S. Krushinsky"On the post-Soviet aspects of the Chinese 'Economic Miracle '" touched upon the problems of the impact of the collapse of the USSR on the socio-economic development of the PRC.

Tarasyuk summed up the results of Russian-Chinese trade and economic cooperation between the Far Eastern Federal District and China in 2005-2009 and the first half of 2010, which showed that high rates of trade turnover between the two countries are mainly due to the accelerated increase in Chinese exports to Russia.

The commodity structure of Russian exports includes a high proportion (90.52%) of raw materials and primary processing products, such as mineral fuels, wood, fertilizers, fish and seafood, ferrous and non-ferrous metals, pulp, ore, etc. Chinese imports to Russia are more stable and are expanding across a large product range. The first place in terms of supply volumes is still occupied by textile products, and the supply of electronics and machine-technical products from China continues to increase.

The 2009-2018 Program of Cooperation between the Far East and Eastern Siberia Regions of the Russian Federation and the Northeast of the People's Republic of China, adopted in September 2009, is a serious incentive for enhancing Russian-Chinese investment cooperation based on the use of the economic potential of the Russian Far East and the Northeastern provinces of the People's Republic of China. The program is aimed at increasing the volume of bilateral cooperation, stimulating the economic development of the territories of the two countries with an emphasis on the investment component, and can give a new impetus to relations between the two countries.

Speaking in the section on agricultural problems, Doctor of Economics L. D. Boni in her report "Development of China's agricultural economy: results of the 11th five-year plan and prospects" focused on solving the tasks set during the last five-year plan. The author noted that the past five years have been one of the most difficult; the country has experienced a powerful earthquake, severe droughts and floods, and frosts. Agriculture managed to cope with a difficult anti-crisis task: to ensure "maintaining a favorable situation in agriculture, especially in grain production, and an effective supply of agricultural products to the country." Grain production has been growing positively for seven consecutive years.

In 2010, a record-breaking grain harvest of 546 million tons was achieved. Thus, the average annual net income of farmers exceeded 5 thousand yuan, and the average annual income growth rate was 8% (the highest in the last 20 years).

The village also played an important role in reducing social tensions, becoming a shock absorber for the huge additional wave of rural unemployment due to migrant workers (2008-2009). The reform of the forest land ownership system was a great success. However, such positive results are obtained on the basis of an outdated material and technical base that is awaiting modernization.

The years of the 11th five-year plan were a period of accelerating the transformation of the Chinese countryside, the transition from the traditional to the modern model of development. During this transition, in all their complexity and inconsistency, the deep processes of industrialization, urbanization, the construction of a new village, and the modernization of the agro-sphere based on the integration of the city and the village intertwined. The author touched upon the following main points in her report: 1) increased efforts of the state in the development of social and household infrastructure and public services (education, healthcare, etc.) in the village; 2) analysis of factors that ensured the success of socio-economic development of the village; 3) launching new long-term programs: increasing the grain potential by another 10%. 50 million tons, modernization of agriculture and irrigation construction. These programs should set the direction for further development

agrospheres, villages of China in the new, 12th five-year plan.

"Problems of implementing the concept of sustainable development of the Chinese agrosphere in the 11th (2006-2010) and 12th five-year plans (2011-2015)" was the topic of the report delivered by E. I. Krapina, Ph. D. in Economics. The author noted that modern agricultural production in China is developing in difficult environmental, man-made and social conditions. An insufficiently high level of natural resource security becomes a strategic obstacle to its successful development in the medium and long term. China today is the country with the highest level of soil degradation in the world. Despite the fact that the grain harvest has been growing over the past seven years (according to the State Statistical Office of the People's Republic of China, the total volume of grain production in 2010 was 546.41 million tons, and thus set a new historical record), deterioration of soil quality in the future may lead to a decrease in crop yields.

Candidate of Economic Sciences L. A. Volkova in her speech "On land contracts in the Chinese countryside at the beginning of the XXI century: delineation of collective land use rights" emphasized that the legislative consolidation of land ownership rights in the countryside was confirmed in three versions of the " Law of the People's Republic of China on Land Management "(1986, 1988 and 2004), which were approved by Standing Committee of the National People's Congress of the corresponding convocations. The main task of implementing the " Law " in practice was assigned to local authorities and, as can be assumed, was not carried out clearly enough and with violations of the interests of peasant users. The document of the CPC Central Committee and the State Council of the People's Republic of China No. 1 (2010) set the task to provide farmers with four indicators: the location of the contract site, its area, the contract for the use of the contract site and the certificate certifying the right to use. The author paid special attention to improving the management of land contracts.

Tsung Ping, a graduate student of the Institute of Economics at the Russian Academy of Sciences, emphasized the relevance of environmental protection and the development of low-carbon technologies, showing how important this is from the point of view of changing the model of economic development.

In the section devoted to industry and transport issues, 5 reports were heard.

Z. A. Muromtseva, Ph. D. in Economics, devoted her speech to" Strategic goals of Industrial development of the People's Republic of China: results of the 12th five-year Plan and plans for the future". The author considered the main results and prospects of industrial development of the PRC in the light of the strategic goals set for transforming the entire economic and social system of the country.

S. L. Sazonova"Transport of the People's Republic of China in the period of the 11th Five-year plan", expressed the opinion that large-scale transport construction has become the main means of bringing the country out of the crisis. Currently, China is investing heavily in the construction of transport infrastructure, which should ensure both the necessary supplies of raw materials from abroad and the development of the country's economy as a whole.

N. N. Koledenkova"China's ferrous metallurgy: results of development in the 11th five-year plan and tasks for the 12th five-year plan" emphasized that the development of industrial production, including ferrous metallurgy, is one of the main tasks set for the Chinese economy. During the 11th five-year plan, ferrous metallurgy was ranked among the priority sectors of economic development, and during this time, China has made significant progress in this area: there was not only a significant increase in metal production, but also an increase in the technological level of production. But this increase was not enough, which led to a significant lag in a number of basic technical and economic indicators from the metallurgy of developed countries. In these circumstances, the state's task is to create conditions for the transition of the metallurgical industry to an innovative path of development.

The report of K. Polit was devoted to the modernization of defense in accordance with global trends and specific features of the country.N. P. B. Kamennova"Military-industrial complex of the People's Republic of China". The author noted that, according to the "Law of the People's Republic of China on State Defense" of 1997, the state, while focusing on economic construction, simultaneously strengthens defense construction, thus implementing a policy of coordinated development of the military and economic spheres.

In the 11th five-year plan (2006-2010), the development of the military - industrial complex followed the path of creating an innovative system of science and technology in the country, integrating military and civilian scientific and technological resources, including basic scientific research, R & D, design and production of military and civilian products. The ultimate goal was to create an effective structure that allows the free use of high technologies for military and civilian purposes in the interests of both the defense and civilian sectors. One of the measures taken in this direction was to combine the functions of industrial management and informatization within the State Council of the People's Republic of China. For this purpose, in 2008, the Ministry of Industry and Informatization was created, which, in particular, is subordinate to the newly formed Department of Defense Science, Technology and Industry. The military-industrial complex is characterized by the predominance of the production of civilian conversion products and the simultaneous modernization of the scientific, technical and production base, the development of foreign (including licensed) technologies for the production of modern weapons. In 2006 the ratio of production volumes of military and civilian products at the enterprises of the industry was 36% to 64%.

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