Professor QIAN Yingyi, Dean of Tsinghua University School of Economics and Management (Tsinghua SEM), a member of the 12th National Committee of the Chinese People's Political Consultative Conference (CPPCC), attended a press conference for the fifth session of the 12th CPPCC National Committee on promoting stable and healthy economic growth at the Great Hall of the People in Beijing, capital of China, March 6, 2017.

The press conference for the fifth session of the 12th CPPCC National Committee

At the press conference, Dean QIAN made the remarks in response to the question concerning how to advise the central bank to strike a balance between stability and de-leveraging.

"Judging from economics, there will be some tensions between maintaining stable growth and economic deleveraging in the short term. The premier's government work report yesterday established a very important strategic orientation - maintaining stability while making steady progress. So stability is the priority. Meanwhile, deleveraging is only a part of 'cutting industrial overcapacity, destocking, de-leveraging, lowering costs and improving weak links'. So the government will steadily promote deleveraging instead of carrying out drastic adjustments in a short term," said QIAN.

"Second, the government work report made it very clear that the government will carry out a more positive fiscal policy, as well as prudent and neutral monetary policy, both of which are of key importance to a steady economic growth. Third, a new but important policy pushed forward in the government work report is a positive employment policy, which is also very significant to a steady economic growth." QIAN added.

Professor QIAN Yingyi, Dean of Tsinghua SEM and a member of the 12th National Committee of the Chinese People's Political Consultative Conference (CPPCC)

Dean QIAN also made the remarks in response to a query on the shift from demographic dividends to talent dividends. He said, the education level today determines the future economic development level tomorrow.

"It is inevitable for the shift from demographic dividends to talent dividends and the shift means an opportunity. In a certain sense, the major power propelling the reform of the supply-side structure lies in whether it can release the talent dividends," said QIAN.

On the differences between the human capital and the material capital, he said: "The most important thing in realizing talent dividends lies in education. The difference between human capital and material capital is that the investment in material capital can achieve immediate results but it will take a long period of time to achieve the dividends of human capital. So we say the level of education today means the economic development level tomorrow." he said. (Source: CCTV)