Taking advantage of the momentum to consolidate and enhance the positive economic recovery – the meeting of the Political Bureau of the Central Committee conveyed new trends in economic development
Xinhua News Agency, Beijing, April 30 – In the critical year to achieve the goals and tasks of the “14th Five-Year Plan”, it is very crucial to do a good job in economic work.
The Political Bureau of the CPC Central Committee held a meeting on April 30 to analyze and study the current economic situation and economic work. It pointed out that “the economy has achieved a good start” and emphasized that “the economy still faces many challenges as it continues to rebound” and “it is necessary to enhance confidence in doing a good job in economic work.” , a series of deployments provide clear guidance for consolidating and enhancing the positive economic recovery.
Persist in taking advantage of the trend and avoid tightening in front and loosening later
In the first quarter of this year, China’s economy achieved a growth of 5.3%, and the macroeconomic operation continued to rebound for the better. This meeting of the Political Bureau of the Central Committee made the judgment that “the economy has achieved a good start.”
“Judging from historical data, the economic scale in the first quarter accounted for about 22% of the total economic volume for the whole year. A good start in the first quarter is of great significance for completing the economic and social development goals and tasks for the whole year.” National Economic Comprehensive Department of the National Development and Reform Commission Deputy Director Li Hui said.
But at the same time, the economy still faces many challenges as it continues to rebound. According to the analysis of the meeting, the main reasons are that effective demand is still insufficient, business operations are under great pressure, there are many hidden risks in key areas, the domestic cycle is not smooth enough, and the complexity, severity, and uncertainty of the external environment have increased significantly. The meeting also emphasized that “a good start and a positive rebound are the basic characteristics and trends of the current economic operation, and we must enhance our confidence in doing a good job in economic work.”
“This fully reflects the Party Central Committee’s comprehensive scientific grasp of the economic situation and its dialectical thinking on doing a good job in the current economic work.” Guo Liyan, deputy director of the Economic Research Institute of the China Academy of Macroeconomics, said that at present, we must not only adhere to the problem orientation but also be firm development confidence, promote the implementation of various policies and measures that have been introduced, and further stabilize development expectations.
“Avoid tightness in the front and looseness in the back”, this statement from the meeting attracted attention.
Guo Liyan analyzed that the good start of the economy has laid a solid foundation for achieving the expected goals for the whole year. The requirements of the Party Central Committee mean that we must take advantage of the situation, grasp the rhythm and scope of macro-control policies, not relax or slack off, continue to promote the coordinated and efficient development of various policies, and effectively promote the continued economic recovery.
Macroeconomic policies should be proactively implemented to ensure effective implementation
The meeting pointed out that efforts must be made to effectively implement the macro policies that have been determined.
“To make efforts forward, we need to prepare policy reserves in advance and leave redundancy; to implement them effectively, we must pay more attention to the effectiveness of policies, enhance the sense of gain, and further enhance the support and support of macro policies for high-quality development. “Promoting effect,” said Jin Li, Vice President of Southern University of Science and Technology.
Following the 2023 Central Economic Work Conference’s proposal to “enhance the consistency of macro policy orientations,” this meeting further emphasized that “it is necessary to do a good job in assessing the consistency of macro policy orientations and strengthen expectation management.”
“It is necessary to implement proactive fiscal policies and prudent monetary policies, and also include non-economic policies in the consistency assessment of macro policy orientations, further strengthen policy coordination, avoid mutual conflicts or ‘synthetic fallacies,’ and fully mobilize the development enthusiasm of all parties, forming a joint force to jointly promote high-quality development,” said Zeng Gang, director of the Shanghai Finance and Development Laboratory.
In terms of actively expanding domestic demand, the meeting proposed to “implement the action plan for large-scale equipment renewal and replacement of old consumer goods with new ones,” “better meet the people’s diversified and high-quality consumption needs,” “deeply promote new people-oriented urbanization,” and “fully stimulate the public Investing in Vitality”.
Jin Li said that at present, the key is to ensure the implementation of macro policies and achieve results, especially to anchor the main difficulties and challenges of economic development such as insufficient effective demand and make precise and sustained efforts to transform policy dividends into development results as soon as possible.
Develop new productive forces and strengthen patient capital in accordance with local conditions
The meeting emphasized “the need to develop new productive forces in accordance with local conditions,” which not only reflected consistent requirements but also further released a clear signal to strengthen new momentum for development.
Scientific and technological innovation is the core element of developing new productive forces. Li Gang, a researcher at the Institute of Industrial Economics of the Chinese Academy of Social Sciences, believes that the meeting clearly strengthened the layout of national strategic scientific and technological forces and further highlighted the urgency and importance of accelerating the construction of a supportive scientific and technological innovation system.
“Developing new productive forces is not a ‘step-by-step’ process. It must be based on the actual situation of each place and make good use of its own conditions and endowments. It must also adhere to classified guidance and precise policy implementation among industries.” Li Gang said.
The meeting proposed that “we should actively develop venture capital and strengthen patient capital,” which attracted much attention.
Gao Guohua, general manager of SDIC Investment Management Co., Ltd., believes that cultivating new technologies and new industries involve large investment, long cycle, and high uncertainty and cannot be achieved overnight. Financial credit and traditional industrial investment methods cannot fully meet the needs of innovative development. Actively developing venture capital and encouraging patient capital to adhere to “long-termism” are not only in line with the characteristics of industrial development but also help to create a good industrial ecology that stimulates innovation.
“New technologies and new industries are not planned, but grow in good ‘soil’. Promoting the ‘co-entrepreneurship’ of patient capital, venture capital, scientists, and entrepreneurs will further form a synergy for the development of new productive forces.” Gao Guohua explains.
Unswervingly deepen reform and expand opening up
This meeting released an important signal to “unswervingly deepen reform and expand opening up.”
Driven by the reform of the economic system, our country continues to comprehensively deepen reforms around promoting Chinese-style modernization. The meeting emphasized “building a unified national market” and “improving the basic system of the market economy.”
“Building a unified national market is an inevitable requirement to smooth the domestic circulation and promote the construction of a new development pattern. It is also an important starting point to release the potential of domestic demand and consolidate the foundation for economic recovery.” Guo Liyan said that the next step must be in accordance with the Party Central Committee and the State Council Deploy and specifically address prominent issues such as local protection, market segmentation, and unfair competition in investment promotion, accelerate the improvement of the market access system, and comprehensively conduct market access effectiveness assessments.
Since the beginning of this year, the complexity, severity, and uncertainty of the external environment have increased significantly. The meeting emphasized the need to actively expand intermediate goods trade, service trade, digital trade, and cross-border e-commerce exports, support private enterprises in expanding overseas markets, and increase efforts to attract and utilize foreign investment.
Zhao Fujun, director of the Comprehensive Research Office of the Foreign Economic Research Department of the Development Research Center of the State Council, believes that a series of deployments at the meeting will help expand high-level opening up to the outside world, consolidate the fundamentals of foreign trade and foreign investment, help private enterprises “go global,” and enhance market confidence.
Continuously prevent and resolve risks in key areas
To promote the continued economic recovery, we must keep the bottom line of risks. The meeting emphasized the need to continue to prevent and resolve risks in key areas.
At present, my country’s real estate market is still in the process of transformation and adjustment. The meeting pointed out that we should continue to adhere to city-specific policies, consolidate the responsibilities of local governments, real estate companies, and financial institutions, effectively ensure the delivery of housing, and protect the legitimate rights and interests of home buyers.
Liu Lin, a researcher at the China Institute of Macroeconomics, said that this shows that at present and in the future, various localities will continue to increase efforts to stabilize real estate financing, promote the completion and delivery of projects, and protect the legitimate rights and interests of home buyers. “To deliver housing to buyers, local governments, real estate companies, and financial institutions must shoulder their responsibilities, implement relevant policies and measures in detail, and actively resolve contradictions in the housing delivery process.”
It is reported that all cities at the prefecture level and above have established an urban real estate financing coordination mechanism and have completed the promotion of two batches of “white list” projects, which will receive financing of nearly one trillion yuan.
The meeting also proposed to coordinate the study of policies and measures to digest existing real estate and optimize incremental housing, and to build a new real estate development model to promote high-quality real estate development.
Yu Xiaofen, dean of the China Housing and Real Estate Research Institute of Zhejiang University of Technology, said that promoting high-quality development of real estate requires two-way efforts to digest the existing stock and optimize the increment. On the one hand, various localities implement city-specific and precise policies, coordinate the stock and increment, and accelerate the establishment of a new mechanism to link the factors of “people”, “housing”, “land” and “money” to promote the balance between supply and demand in the real estate market; on the other hand, efforts are made to build a green, low-carbon, smart, and safe good houses to meet the people’s new expectations for high-quality housing.
The meeting also made arrangements for the in-depth implementation of the local government debt risk resolution plan, clearly proposing to “ensure that provinces, cities and counties with high debt risks can truly reduce debt and develop stably.” In addition, the meeting emphasized that we will continue to promote the reform of small and medium-sized financial institutions and eliminate risks and take multiple measures to promote the healthy development of the capital market.
Effectively protect and improve people’s livelihood
At present, my country’s employment remains generally stable, but total employment pressure and structural contradictions are still prominent. The meeting emphasized that we should highlight the priority orientation of employment, promote the increase of income of low- and middle-income groups and build a tight social security network.
Chen Yongjia, deputy director of the Employment Promotion Department of the Ministry of Human Resources and Social Security, said that through four measures, including supporting job stabilization and job expansion, broadening employment channels, supporting key groups, and strengthening targeted services, we will go all out to stabilize employment, promote development, and strive to complete the overall Annual employment goals and tasks.
The meeting made arrangements for consolidating and expanding the results of poverty alleviation, solidly promoting comprehensive rural revitalization, and ensuring production safety.
“The Party Central Committee focuses on key areas, key groups and weak links in development, effectively guarantees and improves people’s livelihood, and emphasizes promoting the renewal and upgrading of safety production infrastructure. These measures will provide a more solid guarantee for the high-quality development of China’s economy.” State Council Development Feng Wenmeng, a researcher at the research center, said.
A good ecological environment is a universal welfare for people’s livelihood. Feng Wenmeng analyzed that the meeting emphasized the key directions of promoting green and low-carbon development, such as strengthening the clean and efficient use of coal, the consumption and utilization of renewable energy, accelerating the construction of the waste material recycling system, etc., which can not only promote the green transformation of economic and social development, but also be conducive to the expansion of Domestic demand brings new investment opportunities and growth momentum.
In conclusion, the meeting of the Political Bureau of the Central Committee conveyed new trends in economic development that aim to consolidate and enhance the positive economic recovery. With a focus on taking advantage of the current economic momentum, implementing macroeconomic policies effectively, developing new productive forces, deepening reform and expanding opening up, continuously preventing and resolving risks, and protecting and improving people’s livelihood, the meeting provides clear guidance for achieving the goals and tasks of the “14th Five-Year Plan” and promoting high-quality development in China’s economy.