УДК 33

The importance of competition in economic development

Сунь Цзинсун – бакалавр Юньнаньского университета финансов (Китай).

Abstract: The role of competition in a market economy is quiteit is difficult to overestimate. Thanks to this process, the development of this or that branch is taking place, manufacturers improve the quality of their goods in order to attract the maximum number of buyers. Consumers also have a positive impact on competition. But with all the advantages of this process there are drawbacks. Competition forces weak start-ups to leave the market, while strong ones, on the contrary, only strengthen their positions. In addition, there is instability. The functions of competition in a market economy are designed to improve the process, and the shortcomings become less.

Аннотация: Роль конкуренции в рыночной экономике трудно переоценить. Благодаря этому процессу происходит развитие той или иной отрасли, производители улучшают качество своих товаров, чтобы привлечь максимальное количество покупателей. Потребители также положительно влияют на конкуренцию. Но при всех плюсах этого процесса есть и минусы. Конкуренция заставляет слабые начинающие компании уходить с рынка, а сильные, наоборот, только укрепляют свои позиции. Кроме того, возникает нестабильность. Функции конкуренции в рыночной экономике призваны улучшить этот процесс, и недостатков становится меньше.

Keywords: importance, economic, role.

Ключевые слова: значение, экономика, роль.

The real economy is an important foundation for supporting economic growth and ensuring national security, the foundation of a country's economic [1] establishment, the fundamental source of wealth creation and an important pillar of national strength. The 20th Party Congress report stressed that "we will insist on placing the focus of economic development on the real economy, promote new types of industrialisation, and accelerate the construction of a strong manufacturing country, a strong quality country, a strong aerospace country, a strong transportation country, a strong network country, and a digital China". We must firmly grasp the focus on the real economy, vigorously promote the construction of a modern industrial system, and continue to consolidate the material and technical foundation to build a socialist modern country that is strong in all aspects and achieve the goal of the second century [2].

The development experience of countries around the world shows that the healthy development of the real economy is of great significance to the long-term stability and international competitiveness of a country [3]. Whether the country's industrial structure can be optimised and upgraded in a timely manner, whether a number of profitable industries can be formed, whether the technology content can be continuously improved, whether the competitiveness of high-tech industries can be enhanced and whether the security and stability of the industrial chain supply chain can be effectively guaranteed have become issues of common concern to countries around the world.

China attaches great importance to the development of the real economy. Over 40 years of reform and opening up, especially since the 18th Party Congress, China's real economy has achieved steady growth in quantity and significant improvement in quality, and its comprehensive strength, innovation and competitiveness have reached a new level. A series of achievements have laid a solid material and technical foundation to further promote high-quality development. Practice has proved that no matter how far the economy has developed, the real economy is the foundation of our economic development and our ability to win the initiative in international economic competition. Our economy is founded on the real economy, and we must also rely on the real economy to move into the future [4].

The next few years will be a critical period for the start of the comprehensive construction of a modern socialist country, a period in which a new round of scientific and technological revolution and industrial change will deepen, and a period in which international competition will intensify. China's development has entered a period of strategic opportunities and risks and challenges, with increasing uncertainties and unpredictable factors, and outside suppression and containment may increase at any time. The new development pattern we want to establish is based on a modern industrial system, and the smooth economic cycle to be achieved requires the orderly connection and efficient flow of various industries. We must continue to place the focus of economic development on the real economy, continue to develop and grow the real economy, stand firm and respond strongly to various risk challenges [5].

At present, the foundation of China's economic recovery is not yet solid, and the triple pressure of demand contraction, supply shock, and expected weakening is still high. Structural problems of the real economy still exist, and in general the development approach is relatively sloppy. The manufacturing industry is large but not strong, comprehensive infrastructure synergy needs to be improved, the service industry needs to improve quality and efficiency, the competitiveness of enterprises, anti-risk capacity needs to be improved, and some regions still have the seeds of "from the real world to the virtual world". Against this background, it is important to identify the development priorities of the real economy in the current and future periods, and to make corresponding strategic deployment and policy adjustments.

Identifying the main direction of attack

The key to putting the focus of economic development on the real economy is to find the right direction of attack, and to make the real economy more realistic, stronger and better with more precise and pragmatic measures.

First, stick to demand orientation and prioritise quality. The real economy to meet people's growing needs for a better life as the starting point and anchor point. Industrial system, structure, layout and product variety, quantity, quality, price, etc., to focus on meeting different levels, different dimensions of demand, so that the industrial system and all kinds of demand, industrial structure and corresponding demand structure, industrial development and domestic and foreign demand conditions.


  1. Şener S., Sarıdoğan E. The effects of science-technology-innovation on competitiveness and economic growth //Procedia-Social and Behavioral Sciences. – 2011. – Т. 24. – С. 815-828.
  2. Stoica O., Roman A., Rusu V. D. The nexus between entrepreneurship and economic growth: A comparative analysis on groups of countries //Sustainability. – 2020. – Т. 12. – №. 3. – С. 1186.
  3. McCann P., Van Oort F. Theories of agglomeration and regional economic growth: a historical review //Handbook of regional growth and development theories. – Edward Elgar Publishing, 2019. – С. 6-23.
  4. Zhang D. et al. Public spending and green economic growth in BRI region: mediating role of green finance //Energy Policy. – 2021. – Т. 153. – С. 112256.
  5. Klofsten M. et al. The entrepreneurial university as driver for economic growth and social change-Key strategic challenges //Technological Forecasting and Social Change. – 2019. – Т. 141. – С. 149-158.

Интересная статья? Поделись ей с другими: