An
aide brings tea; covered cups of hot water with bright green, tightly curled
leaves floating on the surface. The leaves are a superior grade of Long Jing,
Mr.
Liu seems confident that enough of
“If the government can raise wages and lower taxes, people will have more disposable income to buy food, clothes and TVs,” he said. “If they have greater purchasing power, Chinese factories now exporting products overseas can produce for the domestic economy.”
The twin stars in this constellation, he says, are relaxation of the household registration system and land reform.
While there is a huge floating population in Chinese cities, people remain tethered to the countryside by a registration system that determines everything from where their identity cards are issued to which schools their children can attend.
Not
until this system is relaxed can there be a permanent population shift from the
impoverished countryside to cities where jobs are more plentiful and wages are
higher.
The second step needed is the privatization of land, which would allow those rural families that remain behind to buy and sell land or borrow against it, creating wealth beyond the near sustenance farming that now occupies their time.
“Land reform, if possible, will encourage urbanization, and therefore stimulate further consumption for our computers,” Mr. Liu said, lifting the porcelain lid off his tea cup and setting it on the table beside him.
Mr.
Liu uses
“At this rate, one has to raise 20 cows to break even, and one needs 2,000 cows to really make a profit,” he adds. But with the small plots they have now, each farmer can only raise a few cows.
If entrepreneurs could amass land, he continued, they could industrialize dairy farming and smaller dairy farmers could become dairy workers and their incomes would rise.
He lifted his cup and blew across the surface of his tea, scattering the leaves, before sipping.
Like
many others who see the same solution, Mr. Liu pressed for such strategic
reforms during the recent National People’s Congress. But
“The next day, the National Development and Reform Commission came back to me with a reply,” he said blandly, adding that they “completely ignored the question.” He took another sip of tea.
It
is easy for people outside of
“My
friends and I were worn out by the Cultural Revolution and frustrated by the
political struggles,” he said, remembering how Mr. Deng spoke promisingly of
science and technology. “After Deng Xiaoping came onto the scene, we felt hope
for