The Politburo meeting of the Central Committee of the Communist Party of China held on April 29 pointed out: “We must make every effort to expand domestic demand”, emphasizing: “play the key role of effective investment” and “play the leading role of consumption in the economic cycle”.
Do a good job in infrastructure construction investment, actively expand effective investment, expand and strengthen the domestic market, cultivate more new consumption growth points, and do our best to expand domestic demand. The big article will provide a stronger and more lasting impetus for the Chinese economy to make progress while maintaining stability.
Domestic demand is the main force for stable growth
In the first quarter, my country’s fixed asset investment exceeded 10 trillion yuan, a year-on-year increase of 9.3%, which was better than that of last year. The total retail sales of consumer goods was 10.87 trillion yuan, a year-on-year increase of 3.3%; final consumer spending drove GDP growth of 3.3 percentage points, with a contribution rate of about 70%… A series of data shows that although the economic growth in the first quarter slowed down, However, the role of the “main engine” of domestic demand is still prominent.
In the past decade or so, China’s foreign trade dependence was as high as 67%, and dropped to about 30% in the first quarter of this year; at the same time, the contribution of domestic demand to China’s economic growth The rate remained high, rising from 79.1% last year to 96.3% in the first quarter of this year, further strengthening the support for China’s economy.
The current domestic epidemic situation is repeated, the international situation is changing and other unexpected factors have exceeded expectations, and investment and consumption indicators have fluctuated: in March, the year-on-year growth rate of total retail sales of consumer goods turned from positive to positive Negative, the growth rate of fixed asset investment has dropped significantly compared with the previous two months, and the pressure on investment and consumption is obvious.
Faced with new situations and challenges, domestic demand must be expanded in order to stabilize the economy.
“One of the prominent pressures we are currently facing is demand contraction. Only by expanding domestic demand and promoting a balance between supply and demand can the macroeconomic market be stabilized.” Macroeconomics, Development Research Center of the State Council Zhang Liqun, a researcher at the Department of Economic Research, said.
Zhang Liqun pointed out that to expand domestic demand, we must play a key role in investment, especially government-led infrastructure investment, because it will bring more orders to enterprises and also It will promote the recruitment of enterprises, thereby helping to stabilize employment and increase income. And through investment to promote active production of enterprises, increase high-quality supply, and ultimately drive the continued growth of consumption.
Mao Xuxin, chief economist of the UK National Institute of Economic and Social Research, said that whether it is investing heavily in infrastructure, building an efficient and modern transportation and logistics system, or creating new growth points for consumption, Continuing to tap the consumption potential will provide support for China’s economy to stabilize growth and cope with external challenges, and will also inject strength into stabilizing the global supply chain and boosting confidence in the global market.
Strengthen the investment and consumption portfolio
Expanding investment and comprehensively strengthening infrastructure construction are placed in an important position.
From the Central Economic Work Conference at the end of last year to this year’s government work report, all of them put forward “moderately advanced infrastructure investment”. A meeting proposed to build a modern infrastructure system, and this meeting of the Political Bureau of the Central Committee proposed to comprehensively strengthen infrastructure construction… A series of signals for strengthening infrastructure investment continued to be released.
“Infrastructure plays a key role in mobilizing the whole body at present, and can play a positive role in stabilizing the overall economic situation and stabilizing market expectations. A strategic layout that lays a solid foundation for long-term development,” said Dong Yu, executive vice president of the China Development Planning Institute of Tsinghua University.
“I thought that due to the impact of the epidemic, the required documents would be delayed, but as a result, the land can be started.” Chen Wei, a staff member of Shaanxi Airport Free Trade Industry Development Co., Ltd. Accident. This year, the Airport New Town in Xixian New Area will implement the policy of “getting land and starting construction” to help enterprises shorten the construction period.
Zhang Liqun pointed out that the Politburo meeting of the CPC Central Committee proposed to strengthen the protection of land, energy use, environmental impact assessment, etc., is to speed up the improvement of various policies related to the implementation of infrastructure construction projects to ensure Major construction projects should land and start as soon as possible.
The construction of 102 major projects in the “14th Five-Year Plan” is accelerating, and more than 2,600 projects that have been decomposed are also being implemented in a safe and orderly manner. A special debt project, the annual water conservancy projects and projects can complete an investment of about 800 billion yuan… Among a series of engineering projectsIt contains huge development opportunities and business opportunities.
The authoritative department pointed out that actively expanding effective investment is not about blindly laying out stalls and projects, nor is it engaging in “flooding”-style strong stimulus, but focusing on the economy and society The key areas and weak links of development should be precisely and orderly implemented a number of investment projects that benefit both the current and the long-term.
Consumption is about safeguarding and improving people’s livelihood. Affected by the epidemic, consumption growth is under great pressure. From the introduction of 43 policies by 14 departments to help the recovery and development of the service industry, to the introduction of 20 policies by the State Council to promote consumption, a “combination punch” to promote consumption; The implementation of the bailout policy, to promote the integration of online and offline consumption, and cultivate “smart +” consumption… All aspects should work together to take into account the near and far, and comprehensively implement policies to release the potential of consumption.
Despite the impact of the epidemic, the consumption potential is still huge. The contracted area of the 5th CIIE has reached more than 70% of the planned area of the exhibition area; the scale of the 2nd Consumer Expo will be larger; under the integrated layout of domestic and foreign trade, foreign trade enterprises have begun to strategically expand the domestic sales market…with a population of more than 1.4 billion , The super-large market of more than 400 million middle-income groups has always been the basis for China’s economic development and resistance to external risks.
Restraining “blocking” and ensuring “unblocking” is the key
The smooth economic cycle is the basic guarantee and necessary support for expanding domestic demand.
Aiming at the blocking points in the circulation field, this meeting of the Political Bureau of the Central Committee emphasized that it is necessary to adhere to a national game of chess to ensure smooth traffic and logistics, and ensure that key industrial chains, supply chains, Anti-epidemic guarantees for the normal operation of enterprises and key infrastructure.
For Zheng Zhijie, the head of Zhejiang Lishui United Yunda Express Co., Ltd., problems such as rising oil prices, slow express delivery, and slow payment have caused enterprises to encounter “difficult times” . In accordance with the deployment of the Zhejiang Banking and Insurance Regulatory Bureau, the local Agricultural Bank launched an emergency financing mechanism to ensure employment and market players, and introduced Lishui Policy Financing Guarantee Co., Ltd. to provide enterprises with 1 million yuan of emergency incremental credit within two days to help them smooth logistics.
“One matter, one coordination”, timely promote the solution of the logistics obstruction problem in various places; smooth the transportation and logistics arteries, coordinate and smooth the terminal microcirculation; strengthen the logistics guarantee of key materials and civil materials… A series of measures have been combined with “points, lines and planes” to ensure the smooth flow of logistics.
Reducing “blocking” and ensuring “unblocked” is not only to ensure the smooth flow of circulation, but also to open up the blocking points at the policy level.
The new combined tax and fee support policy has reduced the tax burden for enterprises and increased cash flow by more than 1 trillion yuan; the People’s Bank of China announced a reduction in the deposit reserve of financial institutions The rate will release about 530 billion yuan of long-term funds to further support the development of the real economy… The coordinated efforts of fiscal and monetary policies will allow more real money to truly benefit enterprises.
“Opinions of the Central Committee of the Communist Party of China and the State Council on Accelerating the Construction of a Large National Market” was released, promoting my country’s market from large to strong from six aspects; The Opinions on the Implementation of the Fair Competition Policy” passed the pilot program of comprehensive reform of the market-based allocation of factors, and the “14th Five-Year Plan for the Construction of a Modern Circulation System” was announced to the public… Consolidate the “hard facilities” and improve the “soft environment”, a series of policies The measures continued to be implemented to ensure the smooth circulation of the national economy and the formation of a strong domestic market.
According to a recent survey conducted by the China Council for the Promotion of International Trade, most foreign-invested enterprises surveyed said that China’s construction of a unified national market is a major benefit for foreign enterprises in China, which will greatly enhance their business. Confidence in stable operation and expansion of investment in China.
(original title is “Xinhua Review 丨 Make every effort to expand domestic demand this big article – Implementing the spirit of the Politburo meeting of the Central Committee and doing a good job in the current economic work series of reviews” )