What Is a National CPI?

National economy refers to the autonomy of a country's domestic economy that supports that country's economy. The part or combination of industries (commonly referred to as the strategic industrial portfolio) that has a significant impact on the country's international economic status and national economic security.

The national economy

PPI is the English abbreviation of Producer Price Index. It is a price index that observes the price changes of goods and services in different periods from the perspective of the producer. It reflects the price level of the production link and is also the basis for formulating relevant economic policies and national prices. An important basis for economic accounting. In China, PPI generally refers to the ex-factory price index of industrial products announced by the Bureau of Statistics. There are more than 4,000 products surveyed in China's PPI, including various production and living materials, involving 186 survey types. Among them, the prices of energy raw materials account for a large proportion of the composition of PPI. ^[1]

Comparing the economies of various countries in the stage of internationalization of national economy and the stage of economic globalization, it is not difficult to see the difference between national economy and domestic economy: In the stage of internationalization of national economy, a country can carry out statistics of national economy, because it is as The carrier of international economic relations is compatible, that is, only when the economies of different countries are distinguished by national economies, economic statistics in the sense of national economy (such as statistics of gross national product) may have practical significance. At the stage of economic globalization, the economic statistics of a country are more and more inclined to the statistics of the domestic economy (such as the statistics of GDP). Because at this time, the internationalization of the domestic market and the multinationalization of domestic enterprises and investment entities have made it very difficult to define domestic and foreign economies, and national economic statistics are increasingly difficult to achieve in this situation. Do not give way to domestic economic statistics based on geographical concepts. In this sense, at the stage of economic globalization, the carrier of international economic relations is no longer the national economy, but is based on the domestic economy of a country. When this domestic economy has just entered the stage of economic globalization, it may still have a relatively large proportion of the national economic content. However, in the subsequent stage of economic globalization, this domestic economy has become more and more multinational in terms of economic content and internationalization. keep improving. In this sense, the concept of domestic economy is more inclusive than the concept of national economy. ^[2]

However, as far as the whole stage of economic globalization is concerned, regardless of the degree of internationalization of the domestic economy, if regional economic integration is not considered, the autonomy of each country's economy always exists, and the domestic economy of a country must be subject to the country's This economic autonomy. Here, we need to further compare the differences in the autonomy of countries' economies in the stages of economic globalization and the internationalization of national economies.

In the stage of internationalization of national economy, the autonomy of a country's economy is based on and based on the behavior of the national economy; while in the stage of economic globalization, the autonomy of a country's economy is based on the domestic economy. And it is embodied through actions that may involve domestic multinational economies. For the former, the autonomy of a country s economy is consistent with the behavior of the national economy, so there is no problem regardless of its coverage; but for the latter, the autonomy of a country s economy and the domestic economy s The behavior of the domestic economic part may be inconsistent. If it covers the domestic economy in a comprehensive manner, it may cause a greater conflict of interest between the autonomy of a country's economy and the economy of a foreign country.

At the current stage of world economic development, to contrast economic globalization with the autonomy of a country's economy, we must still observe the trend of economic globalization from the perspective of the national economy, or tailor the economy to the global economic integration standard. The realities of globalization are all caused by ways of thinking that do not conform to the objective practice of world economic development at the stage of economic globalization, and they are not conducive to the healthy development of a country's economy at the stage of economic globalization. It is in this sense that I believe that the traditional concept of national economy should be gradually downplayed, and from the perspective of economic globalization and the autonomous coexistence of a country's economy, the concept of "national economy" should be replaced by it.

The so-called "national economy" refers to the part or industrial combination (commonly referred to as the strategic industrial combination) of the domestic economy that supports the autonomy of the country's economy and has a significant impact on the country's international economic status and national economic security. It differs from the national economy in that its economic composition or industry mix can include economic components from abroad, as long as the existence and expansion of these economic components do not harm the economic autonomy of the host country; it is different from domestic The economic point is that its economic composition or industrial combination not only involves only a part of the domestic economy, but also this part of the domestic economy (whether it is the economic component of the country or the economic component of a foreign country) must obey the country's international economic status and The need to ensure national economic security.

At the stage of internationalization of the national economy, due to various reasons, some countries mainly rely on self-reliance and import substitution strategies to build a closed country. China's socialist construction has come this way for quite a long time, and has made great achievements. Of course, we paid a huge price for these achievements. But by the end of the 1970s and the beginning of the 1980s, this closed economic development model caused China's economic development to face two problems: First, the absolute surplus of labor supply, relying only on domestic capital, not only could not meet the economic modernization The capital investment required and the inability to alleviate the huge employment pressure; Secondly, with the development of high-tech industries, developed countries have already slammed the door of the information society and knowledge economy, while China s overall economic development level has just Complete primary industrialization. If we cannot rely on international division of labor and international trade to promote the development of our country's economy, but everything still depends on self-reliance, the gap between China's economic development level and developed countries will not only be the gap between different stages of industrial society, It is the gap between the industrial society and the information society in different economic times. This gap is not only impossible to narrow, but also has a tendency to expand further. Faced with these two problems, there is no alternative but to introduce foreign capital and technology. The introduction of foreign capital and technology means that it must be opened to the outside world, and while the national economy is internationalizing, it gradually accepts and conforms to the general trend of economic globalization.

There are three main aspects to analyze the possible impacts and results of economic globalization:

The first is that economies in different economic times and different stages of development compete on the same stage. On the one hand, developed countries that have entered the information society will serve as global technological innovation and international financial centers, and developing countries in industrial societies will serve as global manufacturing or processing The new international division of labor pattern of industrial centers and natural resource-owning countries, including member countries of the Organization of the Petroleum Exporting Countries, as global supply centers of primary products; There is a large gap between China and other countries in terms of income levels, national welfare, and international economic status. The root cause of this situation lies in the modern international division of labor formed according to the different contents of science and technology, and the modern economic order in which the distribution of wealth in the world economy is compatible with the possession of science and technology and knowledge.

Second, the international division of labor and global profit distribution will inevitably lead to a large coexistence of developed countries intellectual property trade and service trade with developing countries and a large surplus of goods trade between developing countries and developed countries. Human resources are flowing to developed countries, and manufacturing managers and skilled labor in developed countries are accelerating to developing countries. As a result of globalized capital flows, venture capital is concentrated in developed countries and traditional capital is concentrated in developing countries. At the same time, this trend in international economic relations is further consolidating and strengthening the aforementioned international division of labor, international trade, and global profit distribution between developed and developing countries.

Third, in the international competition of economic globalization, the international competition between developed countries is concentrated on technological innovation and high-tech human resources, while the international competition between developing countries is concentrated on traditional fields such as capital, technology, market and management . However, between developed and developing countries, due to the gap in the overall scientific and technological innovation capacity of the economy (the difference between the technological level of the information society and the technological level of the industrial society) and the different economic resources (the difference between intellectual and material resources), Compared with developing countries, developed countries have always maintained a strong economic position and had a significant impact on international economic rules.

Based on the above analysis, we can see that in the stage of economic globalization, both developed and developing countries are facing uncertainty or risks in economic development, changes in international economic status, and national economic security. Small and medium-sized developing countries are worried about their economic development being hindered and their international economic status is deteriorating; large developing countries want to improve their international economic status, and at the same time they are worried that the gap with developed countries will widen. Challenges to existing economic status, but also fears that large developing countries will become their potential competitors. It is precisely because of various concerns that in the process of economic globalization, both developed and developing countries hope to conform to the overall trend of economic globalization and the internationalization of the domestic economy while maintaining the autonomy of their own economies to the maximum extent. In order to promote the economic development of the country, maintain or improve its international economic status, and ensure national economic security, it has a certain degree of influence and action. It is also because of this consensus that seeks economic autonomy from consideration of the economic interests of the country, which determines the necessity and possibility of long-term coexistence of economic globalization and the autonomy of the economies of all countries.

Recognizing the economic autonomy of countries at the stage of economic globalization will inevitably make the domestic economy of each country into two parts: one is the part of the domestic economy or industry combination directly related to the country's international economic status and national economic security, and the other is That part of the domestic economy or industry mix that is not directly related to the country's international economic status and national economic security. When the economic autonomy supported by the national economic sovereignty was linked to the previous part of the domestic economy or industry mix, the concept of "national economy" naturally emerged. Therefore, at the stage of economic globalization in the development of the world economy, the carrier of international economic relations is neither the national economy at the stage of internationalization of the national economy, nor the domestic economy in the general sense, but the "national economy" as a part of the domestic economy. At this time, in the globalized international market, the competition between manufacturers is correspondingly divided into two types: one is corporate competition with the meaning of competition between "national economies", and the other is not the "national economy." "Competitive business competition. Because the competition between manufacturers has different economic meanings, under different circumstances, the enterprise as the competition subject will have different property rights structures and organizational forms, and it will also have some differences in terms of its industrial concentration and competition pattern. The situation is more complicated, especially in the internationalized domestic market. At the same time, the focus of attention of governments in international economic relations will inevitably shift from the national economy to the national economy. In terms of attitudes towards the domestic economy, it is necessary to shift from comprehensive attention to the degree of internationalization of the domestic market to full openness In areas with the meaning of "national economy", strengthen the control of the domestic economy in the "national economy" area.

Finally, based on the meaning of "national economy", in the stage of economic globalization, the traditional theory of international division of labor and international trade is difficult to adapt to the "national economy" orientation. For example, based on the consideration of their international economic status and national economic security, it is impossible for some countries to determine their industrial structure and ways of participating in international division of labor in accordance with the principles of "absolute advantage" or "comparative advantage". This situation is encountered not only by developing countries, but also by developed countries in a certain period of time.

When we understand the replacement of GATT by the WTO as the inevitable stage of economic globalization and the "national economy" as the carrier of international economic relations in the stage of economic globalization, the inevitable connection between economic globalization, WTO and "national economy" It couldn't be clearer. This trinity between them is not only the key to our grasp of international economic relations in the stage of economic globalization, but also the basis and starting point for our analysis and determination of the government's behavior after China's entry into the WTO.