CPC leadership holds meeting to analyze economic situation, make arrangements for work in the second half of the year

Beijing: The Political Bureau of the Communist Party of China (CPC) Central Committee on Monday held a meeting to analyze the current economic situation and make arrangements for economic work in the second half of the year. Xi Jinping, general secretary of the CPC Central Committee, presided over the meeting.

It was noted at the meeting that since the beginning of this year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, all regions and departments have given overall consideration to both domestic development and the international situation, coordinated epidemic prevention and control with social and economic development, and attached the same importance to development and security. As a result, China’s economy has been continuing to recover, showing a generally upward trajectory, high-quality development has been advanced steadily, and so has industrial upgrading. Food and energy security has been effectively guaranteed, and so has the overall social stability, laying a solid foundation for achieving this year’s goals of social and economic development.

According to the meeting, the Chinese economy is facing new difficulties and challenges, which mainly stem from insufficient domestic demand, difficulties in the operation of some enterprises, risks and hidden dangers in key areas, as well as a grim and complex external environment. After a steady shift for the better in epidemic prevention and control, China’s economic recovery has been progressing with twists and turns. The economy has tremendous resilience and potential for development, and its long-term sound fundamentals remain unchanged.

It was noted at the meeting that to do economic work well for the second half of this year, the general principle of pursuing progress while maintaining stability must be adhered to. While fully, faithfully and comprehensively implementing the new development philosophy, the country must expedite the building of a new development pattern, comprehensively deepen reform and opening up, and intensify the role of macro policies in adjusting and controlling the economy. It is also imperative to make solid efforts to expand domestic demand, shore up confidence and prevent risks. We should continue to improve economic performance, boost endogenous driving force, improve social expectations, and defuse financial risks and hidden dangers, in a bid to effectively upgrade the quality and appropriately expand the quantity of the economy.

It was pointed out that full play must be given to the role of policies and efforts be made where they should, in a bid to steadily promote high-quality economic development.

It is essential to implement macro regulation in a targeted and active manner, and strengthen countercyclical regulation and policy reserves. It is essential to continuously implement proactive fiscal policies and prudent monetary policies, continue with, optimize, improve and implement policies for tax and fee reduction, leverage the role of aggregate and structural monetary policy tools, and support technological innovation, the development of the real economy, and the development of small medium- and micro-sized enterprises. Besides, we should keep the renminbi exchange rate basically stable on a reasonable and balanced basis, and vitalize the capital market to boost investors’ confidence.

It was emphasized at the meeting that it is necessary to actively expand domestic demand, give play to the basic role of consumption in driving economic growth, expand consumption by increasing residents’ income, drive effective supply through end demand, and well combine the implementation of the strategy of expanding domestic demand with deepening supply-side structural reform. It is essential to boost the consumption of bulk commodities such as automobiles, electronic products and household goods, and promote the consumption of services that are related to sports, entertainment, culture, tourism and so on. It is imperative to give better play to the role of government investment in driving growth and speed up the issuance and use of special bonds by local governments. We must formulate and introduce policies and measures to promote private investment, taking multiple measures at the same time to stabilize the basic situation of foreign trade and foreign investment. We need to increase international flights, and ensure the smooth operation of the China Railway Express.

It was pointed out at the meeting that it is imperative to further advance the modernization of the industrial system, cultivate and strengthen strategic emerging industries and develop more pillar industries. We should promote further integration of digital economy with advanced manufacturing and modern services, and boost the safe development of artificial intelligence. Work should also be done to promote the well-regulated, healthy and sustainable development of platform enterprises.

It was stressed at the meeting that it is imperative to deepen reform and opening up, uphold the principle to unswervingly consolidate and develop the public sector and unswervingly encourage, support and guide the development of the non-public sector, improve the core competitiveness of state-owned enterprises and provide private enterprises with an enabling environment. Firm actions must be taken to crack down on arbitrary charges, fines and quotas, and get outstanding payments owed by governments to enterprises cleared. We should also establish and refine the regular communication mechanism with enterprises, and encourage enterprises to delve into new areas, make investments and shoulder risks and actively create markets. We should support the pilot free trade zones and free trade ports with mature conditions to comply with the high-level international economic and trade rules, where they may push forward reform and opening up on a trial basis. A good job must be done to host the third Belt and Road Forum for International Cooperation.

It has been pointed out at the meeting that work must be done to guard against and defuse risks in key areas. To adapt to the great changes in the relationship between supply and demand in China’s real estate market, it is imperative to adjust and improve the related policies in a timely manner, make use of the targeted policy tools in different cities so as to better meet residents’ demand for basic housing or their need to improve their housing conditions, and facilitate the steady and sound development of the real estate market. Greater efforts should be made to launch more affordable housing projects to increase supply. The renovation of villages in cities and the construction of recreational facilities that can be easily converted for emergency use should be actively promoted. The idled properties should be put into use and transformed. We should effectively guard against and defuse local debt risks, and formulate and implement a package of debt-clearing plans. It is essential to strengthen the supervision over finance and push forward the reform of small and medium-sized financial institutions with high risks to prevent them from falling into crisis.

It was stressed at the meeting that more efforts should be made to secure people’s livelihood and a multi-pronged approach is needed to stabilize employment from a strategic perspective. It is necessary to safeguard people’s needs for daily lives and basic wages, as well as the smooth functioning of grassroots governments, and expand the middle-income group. It is imperative to strengthen farmland protection and quality improvement, consolidate and extend achievements in poverty alleviation, and comprehensively advance rural revitalization. Work should be done to prevent severe and major accidents, and secure electricity supply in this peak season.

It is noted at the meeting that we should take the theoretical study program on thoroughly studying and implementing Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as an opportunity to guide all Party members to have a correct understanding of what it means to perform well, and motivate them to do their work well, so that outstanding Party members with a strong sense of responsibility and ability to deal with tough challenges will emerge and make more contributions. They will hopefully make new accomplishments in promoting high-quality development.