Editor's Note:

While "Made in China" goods are found in homes worldwide, Chinese culture has had limited success in moving beyond the country's own shores. The importance of culture has been repeatedly stressed by China's top decision-makers. How does China's cultural strength relate to its economic growth? Can Chinese cultural industries become successful? People's Daily Online (PO) talked to Li Yiping (Li), an economics professor of Renmin University of China.

PO: The importance of culture for the nation was stressed at the Sixth Plenary Session of the 17th CPC Central Committee last year. How do you understand this?

Li: China is in a critical moment of development and in the middle of an economic transition. But, even if China is transferring to the market economy, at the moment it is still a socialist market economy.

In the era of reform and opening-up, we need to keep the core values of socialism. A good culture can have very strong cohesion and be recognized by all as an intangible asset.

Now we are changing the pattern of economic development, but without good culture, the economy cannot develop sustainably or with quality. Besides, culture also involves innovation. The innovations of late Apple founder Steve Jobs were more of a cultural phenomenon than an economic one.

PO: What're your comments about China's cultural industry reform?

Li: Culture has a double meaning: the cultural industry and culture at the spiritual level. At present, in the foreign trade, we have a material trade surplus but we face a severe trade deficit in cultural products.

The cultural industry, like other industries, needs to be market-oriented. But first of all, it has to be acknowledged by society and the market, not only domestically but internationally.

Besides, it needs to innovate to get accepted by the market. I like to watch Peking opera, but I can see there has been little change in it for decades. Cultural industries need to be updated and keep pace with the times to attract customers.

At the same time, it is also important to introduce private capital into the cultural industry under proper control from the government. It will help form market mechanisms in the industry. Such mechanisms are more important than money because they will fully stimulate people's enthusiasm in participating in the industry.

PO: How do you see the role of culture in social and economic development?

Li: Culture is growing increasingly important to social and economic development. More and more scholars have begun to interpret economic development from a cultural angle. They believe that pure economic theories can account for only 80 percent of economic development, and the other 20 percent is left to culture.

Culture has effects on economic development. For example, the economic development of a region is not just due to its resources or location, but due to its commercial spirit.

US scholar Paul Kennedy, who wrote The Rise and Fall of the Great Powers (1989), pointed out that culture affects the rise and fall of big powers. In this sense, China's economic development is not just owed to the economic system, which has never been a pure system but an integrated mass. Obviously, in China, the commercial atmosphere is stronger in southern coastal provinces like Guangdong, Zhejiang, Jiangsu, and so on.

This atmosphere is very important. Why can the US have people like Steve Jobs, who are crazily adventurous? Because Silicon Valley is a place that tolerates failure. Japan and Germany can do well in manufacturing, because they are respectful of authority.

In China, many college graduates cannot find jobs while there is a shortage of technical workers in factories. It has something to do with the traditional idea that "those with the brains should be the bosses."

PO: How can China develop its culture in accordance with the socialist market economy?

Li: Historically, it was the decades of the planned economy that made China fall behind. So we reformed and chose the market economy. Nowadays, the market economy is developing well in China. But as seen in other countries with mature market economies, we need a matching cultural outlook.

We should regard wealth in the correct way. In the first place, the wealth must be "clean" wealth, which is earned in a legal and moral way. We should support enterprises that fulfill their social responsibility and abide by the laws in the process of obtaining wealth, and oppose those that do the opposite.

Besides, an evaluation system for social values should be built to suit the market economy. Based on this evaluation, for example, everyone can give full play to their talents and do what suits them.

In this way, people will have more ways to realize their own value and find a suitable position in society. In China, officialdom still lingers. At present, for example, administration dominates education and scientific research in China. This doesn't suit the market economy.

There should also be a strong commercial atmosphere and entrepreneurship. And there should be freedom of choice and fair competition in market and room for failure. We have too many monopolies in the market now. Of course, honesty and professional ethics are also needed. Without honesty, the market economy cannot go far. The government can play a big role in forming an ethical and honest market by strengthening supervision.