Implementing a package of incremental policies- A quick overview of the key points of the press conference of the State Council Information Office
On October 8, 2024, at 10 AM, the State Council Information Office held a significant news conference where key officials provided insight into new policies aimed at promoting economic growth and improving development. The conference featured National Development and Reform Commission (NDRC) Director Zheng Zhajie, accompanied by Deputy Directors Liu Sushe, Zhao Chenxin, Li Chunlin, and Zheng Bei, who also addressed questions from the media.
Director Zheng emphasized the urgency of these policies in light of new challenges the economy is facing. He remarked, “Given the current downward pressures on economic operations, we are intensifying our macroeconomic policy adjustments to counteract these trends.”
He laid out five key areas of focus:
1. Strengthening consumer demand by improving livelihoods and boosting consumption, while leveraging investment for growth.
2. Enhancing support for businesses encountering difficulties by optimizing the business environment to help them navigate challenges.
3. Implementing a full range of policy measures to stabilize the struggling real estate market.
4. Rolling out effective strategies to counteract the recent stock market downturn and restore investor confidence.
Zheng elaborated on the framework of these incremental policies, highlighting “three key focuses” and “four integral principles.” The three key focuses include:
– Prioritizing the enhancement of economic development quality.
– Supporting the healthy development of the real economy.
– Balancing high-quality development with significant safety measures.
The four integral principles are:
1. Adopting a goal-oriented approach to meet annual targets and maximize the effectiveness of policy tools.
2. Proactively addressing urgent issues affecting businesses and society with targeted measures.
3. Employing a systematic policy approach that ensures alignment across various sectors, including finance, real estate, and employment.
4. Integrating short- and long-term policies to ensure stable economic growth while successfully concluding the 14th Five-Year Plan.
Focusing on consumer support, Zheng provided details on initiatives designed to boost consumption and improve livelihoods for lower- and middle-income groups. He outlined three strategic actions:
1. Increasing support for vulnerable populations, including one-time living allowances and enhanced educational support.
2. Promoting significant purchases by encouraging the recycling and upgrading of consumer goods.
3. Expanding services for elderly care and childcare, while also fostering new consumption trends like digital and sustainable consumption.
Zheng indicated that the government will continue issuing long-term special bonds next year to support vital national projects aimed at enhancing strategic initiatives and bolstering national security capabilities, with an initial budget allocation of 1 trillion RMB for 2024.
He also stressed the need for stricter regulations in business law enforcement to prevent arbitrary fines and inspections, asserting the importance of fostering a favorable environment for private enterprises while speeding up legislative processes for laws promoting the private economy.
In addressing the weak real estate market, Zheng announced systematic measures aimed at managing new housing projects, optimizing existing stock, and ensuring quality improvements, including adjustments to housing purchase restrictions to better align with demand.
Regarding the recent stock market fluctuations, Zheng reassured attendees that the NDRC is implementing robust measures to rejuvenate investor confidence, focusing on fostering long-term investments, supporting mergers and acquisitions, and pushing forward public fund reforms, all while protecting small investors.
The conference highlighted the government’s proactive stance on stabilizing and enhancing the economy through comprehensive and targeted initiatives.
