Let's continue the explanation on the new strategy in China 
when it faces the challenge of overproduction
and of the financial crisis
When we talk about the new strategy
we need to know that 
there are some basic constraints in China
The first is that China is the most populous country
Every year there are new additions to the number of laborers
The total number is more than 10 million
Every year there will be an increase of 10 million to the labor force
because the population size is big
The total number of labor force in China is 840 million
It is much
 much bigger than the total number 
in the labor forces of all the developed countries
That is, if all the western countries put all of their labor force together
it is still smaller than the labor force in China
Even so, in these western countries
no matter what -ism they claim
they often have very severe problems of unemployment
and unemployment often turns into social conflict
When China wanted to do the readjustment
the first concern was how to deal with the employment issue
If the readjustment meant that 
a large number of people would lose their jobs
become unemployed
then the state and society could not maintain stability
 Instability and social conflicts would happen
If they have a large number of people out of jobs
there would be a big disaster
That had to be very carefully thought about
It didn't mean that if China directly closed down the factories 
to reduce industrial capacity
then everything would be well
No, there would be a big institutional cost
This is why just now
when I talked about the government adopting policies of ‘going short’
 like private firms
I made some negative comments
If the government does want to change
they need to have good preparation
think about 
What is a new strategy? 
What is a new industry? 
Where is the room for holding this labor force?
Originally, China had a kind of dual system, rural and urban
Originally, we would say that the urban was a capital pool 
and the rural was a labor pool
When a crisis happened
it always happened in the capital pool
meaning that the crisis took place in urban areas
Then when the urban kicked out
laid off their excess laborers
if the workers could go back to the countryside
to the rural areas
it meant rural was a labor pool 
that could hold the surplus laborers
But if the government policy destroyed the countryside
there would be nowhere to provide a soft landing
That's why previously 
when China had several times of crisis happening 
during the process of industrialization, every time
if they could make a soft landing in the countryside
it meant the industries in urban areas could survive  
They could get past the crisis and go on to recover
But during the first decade of the 21st century
in the name of new countryside construction
a lot of natural resources have been taken by capital
Also, I have mentioned that 
a large amount of industrial capital is invested into agriculture
They change agriculture into a modern agriculture
which means chemicalized, mechanized, and so on
As such the rural areas could hardly be a labor pool anymore
That is a very negative condition
When this time
when the Chinese central government 
wanted to do the national strategic readjustment
they first had to think about 
whether they could regenerate the rural society
That is why I say in the slide here that 
to talk about national strategic readjustments
we first need to do a two-part analysis
The first is the One Belt, One Road
building communication links with other countries 
and then transfer out surplus industrial production capacity
while helping those other countries 
to improve their infrastructure development
That is positive
Try to change your position 
if you were the government
You cannot directly do the “going short” 
if you want to avoid social conflict
That is one truth
Another one is that 
you need to strengthen construction in the countryside
That is why there is a series of new policies 
for anti-poverty, poverty reduction
and also for the “beautiful countryside” construction
The “beautiful countryside” construction 
is a kind of national strategy
also part of the “Beautiful China” 
“Beautiful China” means that 
they are trying to improve the environment and reduce pollution
That is “Beautiful China”
It is a new picture
and inside this picture
there must be the other one
that of strengthening the infrastructure construction of the countryside
By putting these national strategies together
you would understand 
what China nowadays must do
This is a change 
from the beginning of the second decade of the 21st century
when previously it was mainly “going short”
 adopting measures similar to those of private firms
and taking policy measures that were pro-cyclical
That was the case at the beginning of the second decade
And in the middle of the second decade 
they changed the national strategy 
to the right way – “going long”
that is, counter-cyclical measures
It's a very important change
I hope you can understand
In this slide, we say it is a new adjustment
From pro-capital to pro-people and to pro-poor
that is the policy system 
for the ecological civilization construction in China
It is due to the pressure of public security problems
also the constraint of limited resources and large population
That is a basic contradiction in developing countries
On the second part 
I showed the policies step by step from 2002 onward
That was when the government had the new policy 
for comprehensive adjustments of urban and rural
In 2003, they raised a new concept
the scientific view of development
then in 2004 the “harmonious society” meaning that 
they would pay attention to social construction
not only economic construction
That started in 2004
In 2005 there was the new construction project
the socialist countryside construction
with a large amount of investment 
for infrastructure construction in the countryside
Then in 2006 
they had another new concept by the central government
multifunctional agriculture as modernization
Previously they believed that 
agricultural modernization meant using machinery and chemicals in agriculture
They just used industrial concepts to reform agriculture
and that was to be modernization
But from 2006 on they changed the idea 
they emphasized multifunctional agriculture
which includes the aspects of culture
historical heritage, education
environmental protection and tourism, etc
Most of these functions 
they were not aware of originally
but now they say multifunctional agriculture is modernization
That was the agricultural development strategic change 
since the year 2005, 2006  
2005, the new countryside construction 
means to strengthen the investments
to put a large amount of investments 
into infrastructure in the countryside
into every village
even when there would be no returns
in 2006 they further changed the concept 
to multifunctional modernization of agriculture
Then in 2007
ecological civilization as a concept was raised
but not as a strategy
As a “concept” means they first had to understand
to have an awareness of ‘what is ecological?’ 
and ‘what is civilization?’
then put these two concepts together 
and try to think through
to come up with new thinking, new thoughts, about development
Then in 2008 
they tried to have a kind of environment-friendly 
and resource-saving agriculture by means of macro readjustments
In 2009, they raised the concept of inclusive and sustainable development
In 2012 they raised the concept of “Beautiful China”
and in 2013 they had “townization” as a strategy
Few people understand what “townization” is
It's quite different from urbanization
 Non Chinese scholars don't have such kind of terminology
 They only know what a town is
what a city is
When we talk about townization
they say it's not English
English only has “urbanization”
So, we have to create this new word 
to describe what the Chinese strategy is since that year
The Chinese strategy is not exactly to accelerate urbanization
The politicians, when talking about townization
said China does want to accelerate urbanization
but the Chinese urbanization must be implemented by ‘townization’
If you only have the concept of urbanization
you cannot translate the Chinese term for this
Think about this new strategy
in China we have mega cities 
cities with a population of over a million 
we have over 40 of these
We have 600 big cities with over half a million population
But we also have 3,000 central towns in the counties
We also have 30,000 organic towns 
with dozens of thousands of population
These central towns and organic towns are in the countryside
not in urban areas
As such, the central towns and organic towns can be the centers 
for accelerating rural small and medium enterprises 
to come settle here, to be located in the counties
That means the local area can be developed 
through attracting small to medium enterprises
One thing we must pay attention to
employment created by these small and medium enterprises 
is six times bigger than that by big firms
Transnational companies or big companies 
can take on some employees
but not very many
If we want more people to have wage jobs
we need to develop small and medium enterprises
But small and medium enterprises 
cannot be set up in the big cities
because there is too much cost
The small cities, the county towns
and the organic tows can be applied 
to the development of small and medium enterprises
to absorb more laborers
and let them have jobs
That is why China emphasizes townization, not urbanization
This is a very important concept 
in order to understand this Chinese strategy
A lot of foreign scholars
when they do their studies
pay attention to urbanization
That is a rough study of the data
not detailed studies
That is a big problem
As such they cannot understand what the strategy is in China
Townization is different than urbanization
that is one point
Then, from that time 
they also emphasized 
retaining the sense of longing for home village
It is meant to arouse in people 
their feelings towards their home village 
I can say that 
more than 90% of the urban population 
is originally from the countryside
It may be from this generation or from the older generation
They have the memory of their home village
How to have people retain longing feelings? 
Not just by memories
They need to do something
to maintain the village as beautiful villages 
that can have clean water, clean air
a good environment and good quality of food
That would give rise to the feeling
The feeling must have a basis
and to have the basis means 
they need to do something
make some effort in the home village
That is also a way 
to strengthen rural construction
Then, when they have rural construction
they need to have good governance
The government, like almost all governments in the world
wants to increase government goodwill
But how to turn government goodwill 
into government good performance
that is the question
To be or not to be
that is the question
To change the government's goodwill 
into the government's good performance
that's also the question
This is also a key question
By free elections? 
Let me tell you
China started free elections in the countryside since 1988
So far we've had almost 30 years of free elections in the countryside
80% failed
It doesn't mean that 
if you have a free election 
you can have a democratic system in the countryside
No
Traditional rural society will find it very hard 
to accept this modern political regime from western society
especially in the traditional oriental countries
So, even though they have free elections implemented 
in the countryside
nowadays more than 80% of the countryside 
cannot have “good government will” 
going to “good government performance”
 to set up good governance
The government need to have a form 
of mutual interactions with the village
from village elites to the village masses
How to implement that is still a problem
What we also need now 
is to have a lot of grassroots organization set up, cooperatives
elderly associations and women's associations
We need to do a lot of work in the countryside 
to maintain the “beautiful village” 
to maintain good feelings for the village
That is very important
We have said that 
new countryside governance is also a part of the new strategy
In 2015, the Chinese central government emphasized
gave priority to deepen the reform on ecological civilization
Ecological civilization also needs a deepening reform
This systematic policy-making
one after another, one following another, year by year
allows the central policy makers 
to gradually understand what they should do
It is not suddenly
not by some high-level design 
that could quickly realize the outcomes of reform
That is propaganda, the ideological propaganda
In reality, they have to gradually face the challenge
one after another
and then implement the measures one after another
They have to be very cautious in implementing policies
 in such a big country
because the difficulties are very comprehensive
very complicated 
That is why I emphasize 
how these policies have been raised one after another
the newest one in 2015
The UN had the world poverty reduction summit in China
and the Chinese government announced 
that by 2020 China will have no poor people
It means eliminating all poverty in China
What does that mean? 
Previously
China had a 50- or 60- year timeframe starting from 1998 
to undertake rebalancing of regional disparities 
and rural-urban disparities
which meant making a large amount of investment in inland China 
and in the countryside
Previously China had three gaps
The regional gap is between coastal and inland
the coastal regions grew very fast 
but the inland regions were still backward
Next there's the urban-rural gap
urban income was very high 
and rural income very low
Then there is the third gap
which is between rich and poor
You cannot reduce the gap between rich and poor 
anywhere in this whole world
since in the whole world
the gap between rich and poor is widening
That is because in this financial capital era
the rich people can make more money more easily
while the low-level people
the low income people
cannot use financial capital as a tool 
to invest to make returns
As such the low income level, the masses
cannot benefit from the global financialization returns
which means the gap between rich and poor gets larger and larger
No country could allow the narrowing of this gap
but China could at least announce 
that it will eliminate extreme poverty
which means the poor people would at least 
have basic subsistence income
That is, they said, the new national strategy, the goal
Now we have entered 2017
There's only three years left
If you go to China, down to the local levels
you can find almost every local government making efforts 
in the countryside
one household after another, to meet the target
Which household
which people, are the poor ones?
which program should be applied to this household?
 and then 
how to give this household the chance to make a cash income?
They are making a lot of efforts
We'll see in three years 
whether this national strategy can be carried out or not
They have many different policies
focusing on different problems
Maybe they can succeed
Next, here we can see that
 China was blockaded by outside military forces
going back to the Cold War and post-Cold War situations
It is still in place, to blockade China
Now China wants to break through
how? 
It certainly cannot break through by an ocean strategy
but it can break through by a continental strategy
going west by land, not by sea
The sea is blocked
The land is blocked also
but here there is a large area 
that belong to Russia and Mongolia
and here these countries 
that were originally a part of the USSR
so China can go past Kyrgyzstan, Uzbekistan and Kazakhstan
or maybe to Russia
and then have access to oil and gas
and also make transportation links
They have now implemented some transportation 
links from Xi'an and Chongqing directly to western Europe
shortening the transportation time to less than 15 days
Going by ocean it will be 30 days, double
As such transportation by the land bridge is faster
Not only Xi'an, but also Chongqing, Lianyungang
and many other “ports” are being set up on the land bridge
joining the land bridge transport
Here, this map is made by the West
It's not so clear
If you have another picture drawn by China
you would find also the network in the Southeast
Indochina, and South Asia
There are several railway networks
which now have linked up 
with the railway network of mainland China
There will be some kind of a land bridge starting from Hong Kong
Just now, because of some kind of controversies there
the project is blocked
But if the project can be implemented 
from Hong Kong to South Asia
West Asia and even to Central Europe
it will be a good land bridge transport from here to Europe
Again, in the north 
they have set up the three land bridges
In the south
they want to set up a land bridge 
from Hong Kong to cover South Asia
then on to Europe
and then from Europe 
and also from West Asia to go down to Africa
These big projects are all under design
The land bridge is a part of the continental strategy 
to solve the problems of the encirclement
This means China can break through
 by the land bridge construction
and also it can benefit China's border countries 
and the countries along the land bridge
That is the way
Here, it shows why in the One Belt One Road initiative
going by sea is not so easy
It's because here, look
there are many US military bases in the Middle East 
controlling the oil and gas and raw materials 
Look at all these American military bases
Here, in this area
In this area there are also regional conflicts
very tense relations
It is not a question of who is good and who is bad
It is because of the rich resources
The One Belt, One Road initiative has to avoid these conflicts
so there is no road here
not even a shipping line, no road, no construction
because here
look, it is a very dangerous area
That means the One Belt, One Road initiative 
need to avoid the traditional Cold War strategy
The Cold War strategy means that 
a large number of military bases are located in these areas
Putting these three pictures together
we can see that China is encircled by the Big Brother
and has to break through
breaking through only by this way, a land bridge
The first land bridge was here
and then the second land bridge here
and then the third land bridge should be here
But these days
somehow the soft powers 
and smart powers are still playing tricks in these areas
in Burma, Thailand and so on
That means the third land bridge is not so easy
But it will benefit almost all the countries along the way
Here, let me just stop for a second
and leave you to your own thoughts
You can think about whether all this is good or not
Maybe it's not good for you
Maybe it's good for you
I don't want to give you a conclusion
I think you'd better think about this one by yourself
We'll go on to the next slide
When we talk about “Beautiful China”
 it means a cultural self-confidence
also self-awareness
rising above western universality 
which is not a notion from oriental China
Western universality is used by post-Cold War ideology
We need to have cultural regeneration
and with cultural generation we can have awareness
we can have self-identification
That is very important
When we talk about Amazing China, Beautiful China
we must understand it as fostering cultural regeneration
requiring careful reflection on developmentalism
which arose precisely from colonization and capitalization
Developmentalism is very widespread
 now in almost all developing countries
but when we talk about the ten crises in China
we have given a critique
given critical thoughts about what development is
We need to take into consideration “What is the cost?” 
The first point we may know
colonization has helped build Eurocentric modernization
with the costs transferred to poor Southern countries
That was where the problems had originally come from
it came from cost transferring
Then we also need to understand that 
overproduction plus over-competition 
had resulted in the crisis of the west, World War II
That was in the 1930s to 1940s
It means that even though 
they had the help of colonization
even though they had occupied these developing countries
they could not avoid having the contradictions 
in the economic arena spreading into the political arena
from the economic system to the political regime
If you're talking about liberalism
you need to know that 
the Second World War happened in these western countries
and these western countries believed that 
they were liberal countries
The Second World War did not break out in other areas
Certainly, you may think of Japan's invasion of China
but that was earlier than the Second World War
and also, that conflict was between two countries
not worldwide war
It was not until 1941 
that the European countries
most of the European countries
were involved in the war, the Second World War
We can think about this big cost
It's a human disaster
What was it caused by? 
By this Eurocentric thought
this philosophy, this universality, and these ideologies
Nobody can forgive that
Nobody can forget that
Then, after the Second World War ended
when the second overproduction crisis happened in western countries
they need to transfer out their big surplus industrial capacity
Combining with developmentalism
it was transferred to developing countries
They made the developing countries
on the one hand, take on the industries 
labor intensive, low level industries 
and on the other hand, acquiescing to their soft power
including the notion of developmentalism
China is also privy to this notion
I mean China is like other developing countries
with the belief in developmentalism, in globalization
in liberalism and in marketization
All these Eurocentric ideologies as soft power 
have been taken on by China 
just like by other countries
It's the same
However, because China is a big country 
and it cannot implement it everywhere immediately
it has to slow down
and give this populous country
this big continental country, the time to change
Given that the space is much bigger
the room much larger
the space can be used to exchange for time 
The idea is precisely to exchange space for time
It's not like in a small country 
where they would make a very fast implementation 
and then face the bad outcome
China did have a lot of bad outcomes, very negative
but because it's a big country 
it can make small changes to reduce the cost
That is what we need to understand
When we have these thoughts
I had a chance to meet some reputed veteran researchers
Here is Samir Amin
This is John Cobb
They all have very deep thinking
They have very wise thoughts
They gave me a lot of help
And also, led by my Hong Kong friends I had a chance 
to go abroad to meet a lot of scholars in other countries
the common people too, to learn from them
With such international studies
I think we can carry out self-reflection
We can rethink what we have
and what we are going to have
Then also, we have learned from our predecessor
scholars who came before us
We have learnt from them
Liang Shuming, James Yan, Tao Xingzhi, Huang Yanpei, Lu Zhuofu
even Zhang Jian
back then a hundred years ago
In this one hundred years 
we have had so many of these very outstanding scholars
outstanding people
carrying out a lot of local enterprises 
They had good experience
and also provided a lot of lessons
We take these experiences and lessons as a heritage, historical heritage
 which very much benefit our thoughts, our discussions
Through these people
internal and external
inside China and outside China
we have new thoughts to instruct our movement to go forward
 When we have our discussions
we need to have theoretical studies 
in order to undertake a deconstruction of Eurocentric discourses
That is why we talk about these crises
and talk about China's new strategies
We can have further detailed analyses and explanations
Now, when we talk about change
we must know what 
the strategy is based on
It is based on the structure
what is the structure in China really? 
We say it's these twin Egyptian pyramids
an economic pyramid and a social pyramid
What is that? 
Economic-wise
why is it that although China is issuing this large liquidity
this big amount of currency
yet until now there hasn't been a collapse? 
It's the biggest amount in the world
the financial capital in China
The reason is because 
China hasn't finished its monetization and capitalization
This paper money being printed
this currency being issued
what is it for? 
It's so that within China, domestically
they can monetize the raw materials and the natural assets 
Here, we have physical assets, natural properties
meaning physical properties
worth 500 trillion yuan
The land, just the land, both mountain land and arable land
is worth 200 trillion yuan
Not totally monetized
A lot of natural resources cannot be bought or sold still
If these natural resources can be sold and bought
people would need a large amount of currency for the transactions
That is why 
even though China has been expanding the issuance of currency
yet up to now there is no major worsening of the situation
It's similar to 1949
when communist China was just founded
they also had a large amount of paper currency that
could not be used in the business sector
But who took this paper currency? 
The peasants, because the peasants wanted to buy land
They saved this paper currency as property
When they wanted to buy land
they could use it
That's why when the central government unified the whole country
and started issuing this paper money
70% was taken by the peasants, by the rural society
which then reduced the inflation
Normally when too much paper money 
is issued it would turn into inflation
How did new China suppress the inflation? 
Through the peasants, through monetization
This time, we can see that 
we have 500 trillion yuan in physical properties pending monetization
Therefore even though 
we have 180 trillion yuan of financial assets
it would not exceed the value of these natural resources and physical assets
Also look here, China does have big debts
But debts also can be assets
Debts can be assets 
if you issue currency and then buy the debts
Debts can be assets, similar to USA
but USA markets it to other countries
You need to use your current account surplus to buy the US debt
Now China has started to put the debts in the international market
but it's a very small amount
Anyway, if you compare the physical assets
the financial assets and the debt assets
you can see that the debt assets 
and the financial assets are smaller
and the physical assets are the biggest
It will still be able to stabilize the economic structure
If you go to the western countries
it's upside down
The financial assets are much bigger
and almost all the physical assets have been monetized
so they don't have much room
China still has a lot of room to absorb the financial assets
That is why the Dollar system and the Euro system
all very urgently want China to open
open your financial market
give this room to us
It was the reason for Russia's collapse
that Russia opened much earlier than China 
and a large amount of foreign capital had flowed in
monetizing their natural resources and taking away a lot of returns
That's why in the 1990s 
these western countries could move forward faster than others
It's because the big amount of natural resources in Russia 
had come to be controlled by foreign capital, the hard currency
That was why the Soviet Union collapsed
and the western countries won
When China has this kind of pyramid
it means that China is using its own paper currency
It's useless if they have no sovereign independence
but if they have control over sovereign independence
then the paper currency is valuable 
because it can monetize the assets
Close the door before you finish your monetization
When you have monetization
you would set up a lot of firms
and put these firms into the stock markets, to go public
In turn it means the need of a lot of investments 
in order to capitalize them
Then when you've finished capitalization you can open
Because you have finished
all the benefits
the returns will be taken by your own capital
by the country, the people
Anyway, it's by the Chinese, not by foreigners
When you finish that
you can open the market and then join the competition
join the global worsening competition
to see which one would be worsening
That scenario is negative enough, bad enough
But that is why 
up to now China can still make some readjustments strategically
It's because of its different system
A lot of foreign scholars criticize this
they don't think the Chinese system is good
They think it's quite bad 
because it's not liberalism
Yet take this into consideration
has liberalism or neoliberalism benefited any developing country? 
Can you find any case that 
had benefited from liberalism or neoliberalism?
You can do the research
You can read up the cases
We have done a lot of comparative studies so far
We cannot find any developing country 
that has benefited from the Eurocentric system
That is a very cruel phenomenon
Whatever your values are
that is your business
we don't want to interfere
There's only one thing I'm trying to advise
go do the comparative studies
and then you can find the truth
Now let's look at the other one
That is also a pyramid
This is the social structure
The lower part 
China is a stable country
because of what? 
Because of the lower-level classes
The lower classes are not the poor classes
they're not property-less
The lower classes are the small property holders
especially in the countryside
When they carried out the land reform
almost all the lower classes 
had been given at least a piece of land and their own house
It means that they do have small properties
As such, you might call them the “petite bourgeoisie”
We say this is a scattered petite bourgeoisie
The total number is 60% of the population
If you don't take away their properties
they'll be there, settled
A lot of social conflicts are caused by some local governments 
or some capitalists wanting to take the resources
If you do that, there will certainly be social conflicts
Then, above the lower classes, over these 40 years 
during which the central leaders allowed a part of society to become rich 
while the other parts not 
there's the middle class emerging
They may have opportunities
they may be doing something very profitable
in any case so far 
there is more than 30% of the population considered as middle class
The middle class population is two times bigger than USA's
and two times bigger than the total European middle class
It's the biggest consumption group
In any western country
the middle class is a kind of force to stabilize society
because they want security
All middle classes in the world have the same purpose
maintaining security
because they do not have big capital
Big capital allows you to venture, to take risks
but the middle class
because their properties are still small compared with big capital
and also because they have emerged from the lower classes
they are more cautious in handling their small properties
not absolutely small but relatively small
If they face the challenge of financial turmoil
they will lose a lot
As such they are worried about any crisis 
they want security
That is the middle class
In China, the problem of the middle class is that 
they have not any kind of ideology
The lower classes may perhaps believe in socialism
because they are rather small, rather weak
They think that the strong country can provide a social umbrella
Hence among the lower classes
most believe they need a strong government, a big country
As for the middle class
they have some ability to invest 
They also have some chance to go abroad
Therefore the middle class is hard to stabilize
Also they have not any kind of ideology
In particular, in China
the traditional ideology could not do anything with the middle class
They don't think that it's right
They do not believe in the Eurocentric system either
Thus they falter
they cannot be sure who they are
where they come from, and where they are going
The middle class is now where there's a lot of instability 
Then there's another thing I have said
it's fortunately or unfortunately
China has a big capital
and this “big capital” is mainly controlled by the state
That means the state has politicized the upper class
What does it mean? 
Almost all the big firms are owned by the state
a big number of the big firms are controlled by the state
They're state-owned enterprises
They control more than 50% of the financial assets
May be more than 50%, sometimes 60%
sometimes lower, sometimes higher
They also control more than 50% of the industrial assets
So, it's big enough
Just now I said that of the world's top five banks
all except JP Morgan are state banks from China
If you look at the top hundred firms in the world
you also can find a lot of Chinese companies
But if you do research
you will find that among the top hundred companies
if any Chinese companies are listed 
they would be state-owned enterprises
That is the meaning of ‘being politicized’
As such we have this kind of political regime
the politicized upper class ruling the middle class and lower classes
That is all capital
big capital, medium capital and small capital
That is the social structure
It doesn't mean the upper class 
or big capital won't take the surplus from the lower classes
It takes a large amount of surplus 
in order to have the benefits, to be profitable
and the profit compared to the world is high
How to make any change
how to do the reform and still maintain stability? 
That is the question
So now, we have two structures
Both are very useful, very effective
What is the comparative advantage institutionally?
That is still the question
When we finish our lecture
I hope the audience can have your own thoughts
to think about my presentation
Here, for the new strategy
we need to rethink ‘what is agriculture’
To make agriculture as the primary industry
that is only the approach of colonization
Only in the colonized continents would agriculture be the primary industry
In the indigenous continents
the indigenous population countries like China and India
agriculture cannot be the primary industry
because it somehow has a strong relation with people's lives
with the local environment
In China we say “ecology, living, producing”
and the rural in its three dimensions of rural people
rural villages and rural production
We say that traditional agriculture is not just for economic gain
It's for life, for family survival
and also for the village environment protection
We cannot directly call such kind of multifunctional agriculture 
as the primary sector
I am saying 
this because the colonized continental agriculture w
as called the primary industry
then they have agriculture 2.0 version
which means using industries to reform agriculture
to turn agriculture into industrialized agriculture
In China there are four different kinds of agriculture 
going from agriculture 1.0 to 4.0
That is the line of innovation
When they have agriculture as the primary industry
it means they take a large amount of the surplus from agriculture
to set up the industries
Then they use the industries to reform agriculture
and they have the so-called agriculture 2.0
But that is very much a mismatch 
between the resources and the environment
It also turns peasants into laborers
and this labor is marketized
The marketized labor would have a small income
This income is not enough to buy commercial goods
and overproduction happens
That is capitalism
It was there until which time? 
Until they changed agriculture into 3.0
that is, the third version
They incorporate the tertiary sectors like tourism, culture, education 
and whatever into agriculture
and agriculture benefits by these tertiary industries
And they call it agriculture 3.0 version
This primary industry, agriculture
can also be financialized
that is, in the futures markets
mainly controlled by transnational companies
They may also have agriculture as bio-industries
That means agriculture can also contribute a lot of the surplus 
to the financial markets
Generally speaking
agriculture 3.0 can be turned into the form 
social-participated ecological agriculture
That is agriculture 4.0
It has a strong relation with socialization and ecologization
and also has a relation with history
Such kind of agriculture 
can have a large number of positive externalities
but the precondition is that 
you need to control agriculture by yourself
It very much involves sovereign independence
If you don't have sovereign independence
you cannot implement agriculture 4.0 version
So, that is what we refer to as
 “Amazing Countryside” “Beautiful Countryside”
For the whole country's sustainability
we need to have a lot of social participation
These are pictures to show that
the middle-class citizens and the rural elites join in the rural reconstruction
The rural reconstruction is a movement for regeneration, cultural regeneration
and cultural regeneration is for building self-confidence
In turn, self-confidence is for strengthening sovereign independence
That is the core thinking in the new strategy 
in the second decade of the 21st century
I have finished my lecture
I hope it gives you a more detailed understanding of modern Chinese history
Thank you
