In a bid to strengthen the nation’s economic rebound, China has announced plans to step up its macroeconomic policy support during the second half of the year.
The decision was taken at a crucial meeting of the Political Bureau of the Communist Party of China Central Committee, presided over by President Xi Jinping, who is also the general secretary of the CPC Central Committee. The meeting analyzed the current economic situation and formulated strategies to bolster economic growth for the remainder of the year.
Despite facing new challenges, including insufficient domestic demand, difficulties in certain enterprises, risks in key areas, and a complex external environment, China’s economy remains resilient with immense potential for long-term development. Acknowledging this, the meeting’s participants resolved to focus on expanding domestic demand, enhancing confidence, and preventing risks to ensure sustained and positive economic recovery.
To achieve these goals, the Chinese authorities have laid out a comprehensive plan. Key elements of this plan include adhering to proactive fiscal and prudent monetary policies, implementing tax and fee reductions, and leveraging monetary tools to support scientific and technological innovation, the real economy, and the growth of micro, small, and medium-sized enterprises.
The meeting emphasized the importance of maintaining the exchange rate of the renminbi at a generally stable and balanced level, while also invigorating the capital market and boosting investors’ confidence. Efforts will be made to stimulate consumption in major sectors such as automobiles, electronic products, and household goods, as well as promoting service consumption in sports, entertainment, culture, and tourism.
The role of government investment will be maximized, and the issuance and utilization of local government special bonds will be accelerated. The authorities will also focus on promoting private investment and stabilizing the fundamentals of international trade and foreign investment. Measures will be taken to increase international flights and ensure smooth operation of China-Europe freight trains.
To foster sustainable growth, the meeting emphasized the construction of a modern industrial system, with a particular emphasis on strategic emerging industries and pillar sectors. The integration of the digital economy with advanced manufacturing and modern services will be encouraged, and efforts will be made to facilitate the secure development of artificial intelligence and the internet-based platform economy.
In addition, the meeting stressed the importance of continuing to deepen reforms and opening-up, enhancing the core competitiveness of state-owned enterprises, and creating a favorable environment for the development of private enterprises.
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Addressing potential risks, the meeting called for effective prevention and resolution of risks in key areas, including adjustments and optimization of policies for the real estate sector. There will be a focus on promoting stable and healthy growth in the real estate market and preventing and resolving local government debt risks. Financial supervision will be strengthened to ensure stability.
On the social front, the meeting emphasized efforts to promote employment and expand the middle-income group. It also highlighted the importance of consolidating and expanding the achievements made in poverty reduction and comprehensively advancing the rural revitalization strategy.
To ensure the success of economic work in the second half of the year, the CPC Central Committee sought opinions and suggestions from non-CPC personages in a symposium. President Xi Jinping called for solid efforts to achieve the development goals set for the entire year and to sustain the positive economic recovery.
With these proactive measures and policies in place, China aims to strengthen its economy, boost domestic demand, and navigate the challenges presented by the global economic landscape, positioning itself for robust growth and long-term prosperity.