The Political Bureau of the CPC Central Committee held a meeting on April 28 to analyze and study the current economic situation and economic work. Xi Jinping, general secretary of the CPC Central Committee, presided over the meeting.
General judgment on the economic situation
The meeting made an overall judgment on my country’s current economic situation: it is believed that the triple pressure of my country’s demand contraction, supply shock and expected weakening has been alleviated, economic growth is better than expected, market demand is gradually recovering, economic development is showing a rebounding and positive trend, and economic operation has achieved Good start. At the same time, it is pointed out that the improvement of my country’s economic operation is mainly restorative, the internal driving force is not strong, the demand is still insufficient, the economic transformation and upgrading are facing new resistance, and the promotion of high-quality development still needs to overcome many difficulties and challenges.
Adhere to the general tone of seeking progress while maintaining stability
The aggregate policy remains neutral and stable, continuing the policy tone of the two sessions. The meeting pointed out thatAdhere to the general tone of the work of seeking progress while maintaining stability, fully, accurately and comprehensively implement the new development concept, accelerate the construction of a new development pattern, comprehensively deepen reform and opening up, combine the effectiveness of policies with stimulating the vitality of business entities, form a strong driving force for high-quality development, and coordinate the promotion of sustained economic improvement. Endogenous driving forces continue to strengthen, social expectations continue to improve, and risks and hidden dangers continue to be resolved. Riding on the momentum, we will promote the effective improvement of quality and reasonable growth of the economy. The meeting set the tone for the macro policy as follows:A proactive fiscal policy must be strengthened to improve efficiency, and a prudent monetary policy must be precise and powerful.Continuation of last year’s Central Economic Work Conference statement. Previously, at the press conference on financial statistics for the first quarter on April 20, the central bank stated that the aggregate policy will “maintain a reasonable growth in money and credit and ensure that the interest rate level is appropriate”, and that the structural monetary policy “focuses on key points, is reasonable and moderate, and has progress and growth.” It is expected that inclusive small and micro loan support tools, carbon emission reduction support tools, technological innovation re-loans and other tools will continue, and tools established during the epidemic, such as resumption of work and production, will be gradually withdrawn after their expiration.
The key is to restore and expand domestic demand
The April Politburo meetings since 2020 have all mentioned “expanding domestic demand”, and this meeting is no exception. The meeting pointed out thatIt is necessary to increase the income of urban and rural residents through multiple channels, improve the consumption environment, and promote the consumption of services such as cultural tourism. It is necessary to give full play to the guiding role of government investment and policy incentives, and effectively stimulate private investment.It is necessary to adhere to the “two unwavering” and remove legal and regulatory obstacles and hidden barriers that affect the fair competition and common development of enterprises of all types of ownership.Continue to boost the confidence of business entities and help enterprises recover.All types of businesses must operate in compliance with laws and regulations. We must make up our minds to fundamentally solve the problem of corporate debt arrears. It is necessary to promote the standardized and healthy development of platform companies, and encourage leading platform companies to explore and innovate. On April 19, at the April regular press conference held by the National Development and Reform Commission, the spokesperson said that he is stepping up the study and drafting of policy documents on the restoration and expansion of consumption, mainly around stabilizing bulk consumption, increasing service consumption, and expanding rural consumption. Specific policies include stabilizing automobile consumption, accelerating the construction of charging piles and urban parking facilities, and vigorously promoting new energy vehicles to the countryside.Follow-up needs to focus on tracking the implementation of relevant specific policies, and pay close attention to whether the confidence of social entities, especially residents and private enterprises, has been substantially restored.
Industrial policy focuses on technological innovation,
New energy, artificial intelligence and other fields
Against the backdrop of constant trade frictions between China and the United States, the United States continues to increase its technology blockade against China, and my country faces an increased risk of chain and supply disruptions in the “stuck neck” field, fully exposing my country’s shortcomings in the core technology field and highlighting the core The importance of technological autonomy and controllability. In the first meeting of the 20th Central Comprehensive Deepening Reform Committee presided over by General Secretary Xi Jinping, it was emphasized that “we must focus on the major needs of national strategies and industrial development, and increase support for enterprise innovation.” The meeting also pointed out that in order to speed up the construction of a modern industrial system supported by the real economy, it is necessary to go against the trend and accelerate breakthroughs in areas of weakness, but also to follow the trend and become bigger and stronger in areas of advantage.It is necessary to consolidate the foundation of self-reliance and self-improvement in science and technology, and cultivate and grow new kinetic energy.It is necessary to consolidate and expand the development advantages of new energy vehicles, and accelerate the construction of charging piles, energy storage and other facilities and the transformation of supporting power grids. We must attach importance to the development of general artificial intelligence, create an innovative ecology, and pay attention to preventing risks.
Adhere to the positioning of “housing to live in, not speculation”
This year’s real estate policy mainly focuses on the two themes of “stabilizing demand” and “preventing risks”. In the first quarter, various ministries and commissions successively introduced real estate support policies, including a dynamic adjustment mechanism for first-home loan interest rates, launching a pilot project for real estate private equity fund investment, and financial support for the development of the leasing market. Opinions, promoting the normalization of REITs issuance and piloting policies such as mortgage transfer. On the one hand, it encourages the residential sector to increase leverage to stabilize market demand; on the other hand, it aims to revitalize the stock of real estate, increase market supply and liquidity, shorten the transaction cycle of mortgaged real estate, and accelerate the circulation and transaction of second-hand housing.At this meeting, the real estate policy continued the basic tone set by the Central Economic Work Conference and the Two Sessions, still emphasizinginsist that the house is for living,It’s not for speculation,Implement policies according to the city, support rigid and improved housing needs, do a good job in ensuring the delivery of buildings, people’s livelihood, and stability, promote the stable and healthy development of the real estate market, and promote the establishment of a new model for the development of the real estate industry.In megacities, we will actively and steadily promote the transformation of urban villages and the construction of public infrastructure for both emergency and emergency use, and plan and build affordable housing.Overall, there is no more-than-expected stimulus policy in the real estate sector.
Emphasis on preventing and defusing risks in key areas
The meeting pointed out that it is necessary to effectively prevent and resolve risks in key areas, and coordinate the reform of small and medium-sized banks, insurance and trust institutions to reduce risks.The 2023 “Government Work Report” also pointed out that it is necessary to “deepen the reform of the financial system, improve financial supervision, consolidate the responsibilities of all parties, and prevent the formation of regional and systemic financial risks.” The Departmental Budget of the General Administration of Administration (China Banking and Insurance Regulatory Commission) pointed out that in 2023, it will “highlight the reform of small and medium-sized banks to reduce risks.” The foundation of my country’s large state-owned financial institutions is relatively solid, but individual small and medium-sized banks, village banks, and trust companies are relatively fragile. Preventing and defusing major economic and financial risks is an eternal theme of financial work.
On the other hand, the meeting pointed outStrengthen local government debt management and strictly control new hidden debts.This statement is consistent with the previous official statement, and the keynote of hidden debt is mainly to “reduce the stock and control the new increase”.In recent years, due to the decline in fiscal revenue, especially the income from land sales, the pressure on local fiscal revenue and expenditure balance has increased, and the situation of illegal borrowing in some places has increased. The Ministry of Finance notified the cases of local illegal borrowing twice last year. rightThe supervision of hidden debt will continue to be strict.
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