Jin Guanping- Firm confidence drives continued economic recovery
In a recent meeting of the Central Political Bureau, there was a strong emphasis on focusing on key issues and taking proactive measures. The goal is to effectively implement existing policies while introducing new ones to enhance their relevance and effectiveness, all in an effort to achieve the annual economic and social development targets. The recent rollout of a comprehensive set of new policies sends a robust signal for stabilizing growth, significantly boosting market expectations and overall confidence in development.
Understanding the economic landscape is crucial for effective economic management. This year, amid increasingly complex domestic and international environments, China’s economic operation has remained generally stable and progressively improving. High-quality development is making strides, and social stability is being upheld. However, several new situations and issues are emerging. On a global scale, major economies are experiencing weak growth momentum and heavy debt burdens, while international market fluctuations are pronounced and global trade protectionism is intensifying, adding to uncertainty. Domestically, effective demand is still lagging, many industries are facing operational difficulties, and significant risks remain in key areas, coupled with shortcomings in social welfare.
The Central Political Bureau meeting urged a comprehensive, objective, and calm view of the current economic situation, advocating for an acknowledgment of difficulties and a firm commitment to confidence. Confronting challenges entails a commitment to bottom-line thinking, enhancing the sense of responsibility and urgency in economic work, and further refining the targeting and effectiveness of policy measures. Maintaining confidence requires a stable strategic approach and the ability to recognize long-term trends amid short-term fluctuations. As the world’s second-largest economy, China has built a solid foundation for steady growth through ongoing efforts, and the long-term positive fundamentals remain unchanged. The nation is endowed with a vast market, strong economic resilience, and considerable potential. Additionally, it possesses the flexibility and policy tools necessary to strengthen macroeconomic regulation.
The newly unveiled suite of policies directly addresses the challenges in economic and social development, coordinating efforts across various areas such as finance, consumption, investment, real estate, stock markets, employment, and social welfare. This comprehensive approach reflects a clear problem-oriented and goal-directed strategy. Furthermore, the new measures blend immediate solutions with a long-term focus, tackling current challenges while addressing major issues that affect the economy’s mid-to-long-term development.
Driving economic growth through reform is essential. The set of new policies introduces deeper reforms throughout various sectors, accelerating the rollout of measures that are feasible, tangible, and conducive to facilitating sustainable economic progress. For example, a draft law promoting the private economy is currently open for public feedback, and the National Development and Reform Commission is set to release guidelines for building a unified national market, a new negative list for market entry, and a mechanism for increased investment in future industries. As these landmark reforms are implemented, the vitality of economic and social development will continue to be unleashed.
Stabilizing growth hinges on supporting enterprises, which are fundamental to the economy and primary job creators. Addressing the real difficulties faced by businesses is crucial; effective assistance to help companies navigate challenges is vital. Policymakers must utilize various supportive measures and decisively rectify issues such as arbitrary fines, inspections, and closures that businesses have raised concerns about, ensuring a continuously optimized business environment to stabilize expectations and boost confidence.
As 2023 progresses into its fourth quarter, running the “last leg” effectively is crucial for the year’s economic development. Aligning thoughts and actions with the Party Central Committee’s analysis and decisions regarding the economic landscape is essential. It is imperative to implement existing policies effectively, accelerate the introduction of new measures, and solidify the foundation for stable economic performance, striving to meet the annual goals for economic and social development.
