China Economy: Key meeting vows to achieve "best possible results" in H2
China pledges to take a slew of measures to achieve the "best possible results" against the backdrop of increased downward pressure on the economy.
The Communist Party of China (CPC) held a high-level meeting on Thursday to map out plans for the Chinese economy in the second half of the year (H2), pledging to take a slew of measures to achieve the "best possible results" against the backdrop of increased downward pressure on the economy.
The meeting came months ahead of the Party's 20th National Congress, a quinquennial event to chart China's course for the next five years and beyond, and gave clues on where the country's economic policies are heading at this crucial juncture.
We have prepared key takeaways from the meeting as a quick reference and also a translation of key sections of the official press release, with main points and highlights, should you need detailed information.
Key takeaways:
** New achievements in economic and social development in H1 are fully recognized. Efforts must be made to "keep the economy operating within an appropriate range and strive to achieve the best possible results" in H2.
** Monetary and fiscal policies should be more proactive and effective to address demand insufficiency in the society.
** Provinces with capabilities should strive to achieve the goals of economic and social development.
** The property market should be stabilized, and delivery of unfinished houses should be ensured.
** Financial risks in some local rural banks should be defused.
** Measures should be taken to promote regulated, healthy and sustained development of platform economy. A number of "green-lighted" investment cases are to be rolled out.
** The dynamic zero-COVID policy should be maintained without hurting major economic and social functions.
Translation of key sections of the official press release:
Since the beginning of this year, in the face of the complex and severe international environment and the arduous domestic work in promoting reform and development and ensuring stability, we have effectively coordinated epidemic prevention and control with economic and social development under the strong leadership of the CPC with Comrade Xi Jinping at its core, according to the meeting. Positive results have been achieved in epidemic control, and new achievements have been made in economic and social development. The whole country has made arduous efforts, and the achievements are worthy of full recognition. At the same time, the current economic operation is facing some prominent contradictions and problems. We must maintain our strategic resolve and firmly pursue our own cause, according to the meeting.
ECONOMIC STABILITY
It emphasized that, to well manage the economic work in H2, the country should adhere to the general principle of seeking progress while maintaining stability, fully, accurately and comprehensively implement the new development philosophy, accelerate the fostering of a new development paradigm, and focus on promoting high-quality development. It is necessary to fully ensure that the epidemic is contained, the economy is stable and that development is achieved on the basis of security. Efforts must be made to consolidate the trend of economic recovery, focus on stabilizing employment and prices, keep the economy operating within a reasonable range, and strive to achieve the best possible results.
EPIDEMIC CONTROL
The meeting pointed out that persistence leads to victory. It is necessary to efficiently coordinate epidemic prevention and control with economic and social development. The relationship between epidemic prevention and control and economic and social development must be viewed comprehensively, systematically, and in the long run, especially from a political point of view. Work should be done to uphold the supremacy of the people and life, keep preventing inbound cases and domestic resurgence of COVID-19, and adhere to the dynamic zero-COVID policy. When an epidemic occurs, we must move immediately and take strict prevention and control measures. We must contain what should be contained, and stay away from slackness and weariness. It is necessary to resolutely and earnestly implement the epidemic prevention and control policies and measures determined by the CPC Central Committee, to ensure the orderly operation of key functions affecting economic and social development, and to resolutely keep those functions that should be protected running well. Work should be done to strengthen virus mutation tracking and research and development of new vaccines and drugs.
MONETARY & FISCAL POLICIES
The meeting emphasized that macroeconomic policies should be active in expanding demand. Fiscal and monetary policies should effectively address the demand insufficiency in the society. Measures should be taken to make good use of local government special bond funds and support local governments to make full use of the special debt limit. Monetary policies should maintain reasonable and sufficient liquidity, increase credit support for enterprises, and make good use of new credit from policy banks and investment funds for infrastructure construction. It is necessary to improve the stability and international competitiveness of the industrial and supply chains, smoothen transportation and logistics, optimize the layout of the domestic industrial chain, and support the central and western regions to improve infrastructure and business environment.
REAL ESTATE, RURAL BANKS
The meeting underscored maintaining the bottom line of security in all aspects. It is necessary to strengthen food security and improve the capability of guaranteeing energy and resource supply, and intensify efforts to plan and build a new energy supply and utilization system. Efforts should be made to stabilize the real estate market, adhere to the positioning that houses are for living and not for speculation, make full use of the policy toolbox for city-specific regulation, support rigid demand for houses and demand for better housing, let local governments take responsibility, ensure the delivery of unfinished housing projects and guarantee people's livelihood. Work should be done to maintain the overall stability of the financial market, properly resolve risks related to some local rural banks, and crack down on financial crimes. Relevant parties should shoulder responsibility for work safety.
PLATFORM ECONOMY, EMPLOYMENT
The meeting pointed out that reform and opening up should be leveraged to add momentum for economic development. Efforts should be continued to implement the three-year action plan for the reform of state-owned enterprises. It is necessary to promote the standardized, healthy and sustainable development of the platform economy, finish rectification of the sector, implement normalized supervision of the platform economy, and roll out a number of "green-lighted" investment cases. Exports and imports should be actively expanded, technology and foreign capital should be well introduced, and the joint high-quality development of the Belt and Road should be promoted.
The meeting stressed solid work to ensure people's livelihood. Efforts should be made to ensure the basic livelihood of the people in difficulty and the employment of key groups such as college graduates.
The meeting demanded that the enthusiasm of all parties should be fully mobilized. All regions and departments must take responsibility, leaders at all levels must carry out their work with full spirits, and leading cadres must be brave and able to make accomplishments. Provinces with large economies should bravely take the lead, and provinces with conditions should strive to achieve the goals of economic and social development. It is necessary to give full play to the initiative of enterprises and entrepreneurs and create a sound policy and institutional environment for state-owned, private and foreign enterprises to venture and invest.