Xinhua News Agency, Beijing, July 31st Title: The overall economic recovery has made solid and powerful progress towards good and high-quality development — — The main responsible comrades of the National Development and Reform Commission answered questions from reporters on the current economic situation and work.
Xinhua news agency reporter
The Political Bureau of the Communist Party of China (CPC) Central Committee recently held a meeting to analyze and study the current economic situation and plan economic work in the second half of the year. How to correctly understand the current economic situation, how to better implement the spirit of the meeting and promote the sustained improvement of economic operation? Focusing on the relevant issues of social concern, the reporter interviewed the main responsible comrades of the National Development and Reform Commission.
In the first half of the year, the economy continued to recover and the overall recovery improved.
Q: Politburo meeting of the Chinese Communist Party believes that since the beginning of this year, the national economy has continued to recover and the overall recovery has improved. How to understand and grasp this important judgment?
A: Since the beginning of this year, in the face of the complicated and severe international environment and arduous domestic reform, development and stability tasks, under the strong leadership of the CPC Central Committee with the Supreme Leader as the core and with the joint efforts of the whole country, China’s economy has continued to recover, the overall recovery has improved, high-quality development has been solidly promoted, and the overall social situation has remained stable. We can understand and grasp the current economic situation from three key words.
The first is "recovery", that is, the overall economic operation picks up and the supply and demand ends continue to recover. From the main data in the first half of the year, the GDP increased by 5.5% year-on-year, and the growth rate was 1 percentage point faster than that in the first quarter. From the production point of view, the summer harvest of grain and oil has achieved another bumper harvest, and the total output of summer grain is 292.3 billion Jin; Industrial production recovered steadily, and the total industrial added value in the first half of the year increased by 3.7% year-on-year, 0.8 percentage points faster than that in the first quarter; The service industry grew by 6.4%, accelerating by 1 percentage point. In terms of demand, consumption recovered quickly. In the first half of the year, the total retail sales of consumer goods increased by 8.2% year-on-year, 2.4 percentage points faster than that in the first quarter, and the sales of new energy vehicles increased by 44.1%. The scale of investment continued to expand, and investment in fixed assets increased by 3.8%; Foreign trade exports maintained growth, and the import and export of goods increased by 2.1%, of which exports increased by 3.7%.
The second is "improving", that is, the economic structure is constantly optimized and the quality of development is steadily improved. The pulling effect of domestic demand was enhanced. In the first half of the year, the contribution rate of domestic demand to economic growth reached 110.8%, up 59.4 percentage points year-on-year, of which the contribution rate of final consumption reached 77.2%, up 46.4 percentage points. Investment in infrastructure, manufacturing and high-tech industries grew rapidly, increasing by 7.2%, 6% and 12.5% respectively in the first half of the year. Industrial upgrading accumulated a lot, and the added value of equipment manufacturing increased by 6.5%, 2.7 percentage points faster than all industries above designated size; C919 large passenger plane was officially put into commercial operation, the first domestic large cruise ship was docked, and the "new three" exports of electric vehicles, lithium batteries and solar cells increased by 61.6%.
The third is "stability", that is, employment prices are generally stable and people’s lives continue to improve. In the first half of the year, 6.78 million new jobs were created in cities and towns, an increase of 240,000 compared with the same period of last year. In June, the national urban survey unemployment rate was 5.2%. Consumer prices rose by 0.7% in the first half of the year. Residents’ income has been continuously improved, and the per capita disposable income of the national residents has actually increased by 5.8%, up by 2 percentage points over the first quarter, of which the per capita disposable income of rural residents has increased by 7.2%, up by 2.4 percentage points. In the first half of the year, 42,600 old urban communities were newly renovated, involving 7.42 million households. We will steadily implement the national overall planning of the basic old-age insurance for enterprise employees, and further raise the basic pension level for retirees. The coverage of direct settlement of cross-provincial medical treatment in different places continued to expand.
The good achievements in economic and social development in the first half of the year were achieved under the circumstances that external demand weakened, the adverse impact of changes in the international environment increased, domestic cyclical structural contradictions were intertwined, and potential risks in some fields gradually emerged, which met expectations and was hard-won.
China’s economy will maintain a stable and positive trend in the second half of the year.
Q: We have noticed that some economic indicators have slowed down or fluctuated since the second quarter. How do you view the economic trend in the second half of the year?
A: After three years of epidemic impact in COVID-19, economic recovery will be a wave-like development and tortuous progress after the epidemic prevention and control has turned smoothly, and some economic indicators will fluctuate. At present, China’s economic operation is facing new difficult challenges from international and domestic sources, the international market demand is weakening, risks are accumulated in the global economic and financial fields, the geopolitical pattern is profoundly adjusted, and the external environment is complex and severe; Domestic demand is insufficient, some enterprises have difficulties in operation, and some areas have hidden risks.
At the same time, we must also see that we have the strong leadership of the CPC Central Committee with the Supreme Leader as the core. China’s economy has strong resilience, great potential and full vitality. The fundamentals of long-term improvement have not changed. The new development pattern is being accelerated, high-quality development is being comprehensively promoted, and economic development has good support and favorable conditions. First, the development foundation is more solid. China’s economic scale has exceeded 120 trillion yuan, with a complete industrial system, rich high-quality human resources, convenient software and hardware infrastructure network, constantly improving security capabilities, and steadily enhancing economic risk resistance. Second, the market potential continues to be released. China is the world’s largest potential consumer market, with a huge population base and constantly improving population quality, the market increment continues to expand, the investment demand in public services, infrastructure and other fields is strong, and the economic structure optimization, industrial structure adjustment, regional coordinated development and urbanization rate increase contain huge market space. Adhere to the organic combination of the implementation of the strategy of expanding domestic demand and deepening the structural reform of the supply side, and the advantages of the super-large-scale market will be further revealed. The third is to accelerate the transformation of old and new kinetic energy. The innovation ability has been continuously improved, the high-end, intelligent and green transformation of traditional industries has been steadily promoted, the integration and development process of advanced manufacturing and modern service industries has been accelerated, and strategic emerging industries are accelerating their development and growth. Fourth, the vitality of development has been continuously enhanced. The comprehensive deepening of reforms in key areas and key links, the steady improvement of the level of opening up to the outside world, the expansion of domestic market space and the release of potential will continuously stimulate the vitality, motivation and creativity of business entities. Fifth, the policy effect continues to appear.The series of decision-making arrangements made by the CPC Central Committee and the State Council have been accelerated, and policies such as expanding domestic demand, strengthening entities and preventing risks have been introduced one after another. The joint efforts of stock measures and incremental policies to promote high-quality development have been further enhanced. In the second half of the year, China’s economy will maintain a stable and positive trend on the basis of sustained recovery in the first half.
In short, we are confident, qualified and capable of promoting the continuous improvement of economic structure, the continuous enhancement of growth momentum and the continuous improvement of development trend, and achieving the objectives and tasks of economic and social development throughout the year with high quality.
Accurately and forcefully implement macro-control
Q: Faced with problems such as insufficient domestic demand, difficulties in some enterprises’ operation, and many hidden risks in some areas, what will be the focus of macro-control policies in the next stage?
A: Politburo meeting of the Chinese Communist Party has made systematic arrangements for economic work in the second half of the year. We will focus on the primary task of high-quality development and the strategic task of building a new development pattern, and do our best to implement it, focusing on the following five aspects.
First, persist in striving for progress while maintaining stability and consolidate the good momentum of economic recovery. Put steady growth in a more prominent position, implement macro-control accurately and forcefully, continue to implement proactive fiscal policy and prudent monetary policy, strengthen policy coordination and coordination, implement good policies and measures to promote sustained economic recovery, strengthen countercyclical adjustment, do a good job in policy reserves, and timely introduce more targeted and powerful policies and measures in batches according to changes in the situation, so as to create a good policy environment for enterprise development and lay a solid foundation for sustained economic recovery.
Second, adhere to self-reliance and accelerate the construction of a modern industrial system supported by the real economy. Put the focus of economic development on the real economy, forge long boards and make up short boards, vigorously enhance the ability of scientific and technological innovation, accelerate the transformation and upgrading of traditional industries, cultivate and expand strategic emerging industries, create more pillar industries, promote the high-quality development of advanced manufacturing industries, and further enhance the resilience and safety level of the industrial chain supply chain.
The third is to persist in reform and opening up and effectively stimulate the vitality and endogenous motivation of business entities. Focus on the key areas and key links of "taking the lead and moving the whole body" and increase the intensity of reform. Adhere to the "two unwavering", accelerate the optimization of the layout and structural adjustment of the state-owned economy, and promote the development and growth of the private economy. We will steadily expand institutional opening up, attract and utilize foreign capital more vigorously, and promote the high-quality development of the "Belt and Road".
The fourth is to adhere to the bottom line thinking and effectively prevent and resolve internal and external risk challenges. Systematic planning, precise policy, safe disposal and resolution of potential risks in real estate, local debt, finance and other fields, vigorously improve the safety and security capabilities of food and energy resources, and firmly hold the bottom line of no systemic risks.
The fifth is to persist in taking the people as the center and do a solid job in improving people’s livelihood. We will solve outstanding problems in the areas of people’s livelihood, such as employment, which the masses care about, speed up the filling of shortcomings in the supply of public services, such as pension, nursery, education and medical care, consolidate the social security safety net, strengthen the supervision of production safety and disaster prevention and mitigation, and continuously improve people’s living standards.
Firmly implement the strategy of expanding domestic demand
Q: Recently, relevant departments have successively introduced policies to expand consumption and promote investment. What other considerations are there in expanding domestic demand in the second half of the year?
A: Since the beginning of this year, in accordance with the decision-making arrangements of the CPC Central Committee and the State Council, the National Development and Reform Commission, together with relevant parties, has firmly implemented the strategy of expanding domestic demand, given priority to restoring and expanding consumption, actively expanded effective investment, and introduced a series of policy measures. At present, these measures are taking effect.
In the second half of the year, in terms of expanding domestic demand, first, give better play to the basic role of consumption in stimulating economic growth. Issue policy documents to restore and expand consumption. Increase residents’ income by vigorously promoting employment and other measures. Boost bulk consumption, accelerate the construction of charging and parking facilities, and encourage areas where automobile purchases are restricted to optimize purchase restriction management policies. We will continue to do a good job in ensuring the delivery of buildings, people’s livelihood and stability, adjust and optimize real estate policies in a timely manner, and make good use of the policy toolbox to better meet the rigid and improved housing needs of residents. Promote service consumption to be "better and better", and take holidays such as summer vacation, Mid-Autumn Festival and National Day as an opportunity to expand holiday consumption; Make full use of the Universiade, Asian Games and other sports activities to develop cultural and sports consumption. Study and implement policies and measures to vigorously develop the silver-haired economy. The second is to actively play the key role of investment in optimizing the supply structure. Private investment has always been one of the key points of effective investment. It is necessary to clarify a number of key sub-sectors to encourage private capital to participate, strengthen the protection of private investment financing, land use and other factors, support private capital to participate in revitalizing state-owned stock assets, and promote the gradual recovery of private investment. Give full play to the leading role of government investment, solidly promote 102 major projects in the 14 th Five-Year Plan and other major projects for economic and social development, and accelerate the issuance and use of special bonds for local governments.
Promote the real economy to change its mode, adjust its structure and increase its kinetic energy.
Q: Many enterprises report difficulties in production and operation, lack of capacity in transformation and upgrading, etc. How can we take effective measures to alleviate the difficulties in the real economy and speed up the construction of a modern industrial system?
A: The real economy is the foundation of a country’s economy. In the second half of the year, it is necessary to speed up the implementation of the policy of helping enterprises to bail out, promote the transformation of the real economy, adjust its structure, increase its kinetic energy, and accelerate the construction of a modern industrial system.
First, increase the efforts to clean up the accounts owed by enterprises, especially small and medium-sized enterprises. We will speed up the settlement of the government’s arrears of corporate accounts, strictly enforce the regulations on the payment of funds for small and medium-sized enterprises, implement the information disclosure system for overdue payment of accounts for small and medium-sized enterprises by organs, institutions and large enterprises, and promote the settlement of mutual arrears among enterprises.
The second is comprehensive policy to help enterprises reduce burdens and increase efficiency. We will continue to optimize, improve and implement the policy of tax reduction and fee reduction, and prohibit such acts as overcharging taxes and fees, arbitrary charges, fines and levies, so as to promote the steady decline of comprehensive financing costs of enterprises and provide diversified relay financial services for technology-based enterprises throughout their life cycle. Cultivate a number of characteristic industrial clusters of small and medium-sized enterprises within the county scope of the country.
The third is to strengthen the main position of scientific and technological innovation of enterprises. Give full play to the leading and supporting role of backbone enterprises of science and technology, create a good ecology conducive to the growth of small and medium-sized enterprises of science and technology, cultivate more specialized and innovative small and medium-sized enterprises, accelerate the cultivation of high-quality talents that meet the needs of the industry, strengthen the construction of high-skilled talents in the new era, and promote the deep integration of the capital chain of innovation chain industrial chain. Organize more enterprises to take the lead and participate in key core technology research, and accelerate the research and development and application promotion of cutting-edge technologies.
The fourth is to speed up the transformation and upgrading of traditional industries. Support qualified enterprises to scientifically transform according to market development, comprehensively promote the upgrading of high-end, intelligent and green manufacturing systems, solidly promote intelligent manufacturing actions, and orderly implement energy-saving and carbon-reducing transformation in key industrial areas. Vigorously develop modern service industry and build a new service industry system with high quality and high efficiency. We will further implement the strategy of storing grain in the land and storing grain in technology, promote the revitalization of seed industry, and strengthen the support of agricultural science and technology and equipment.
The fifth is to accelerate the cultivation and expansion of strategic emerging industries. In-depth implementation of the national strategic emerging industrial cluster development project, promote the deep integration of digital economy with advanced manufacturing and modern service industries, vigorously develop artificial intelligence, new materials, new energy and other industries, and plan and lay out a number of future industries.
At the same time, we will further improve the normal communication mechanism between government departments and private enterprises, state-owned enterprises, foreign-funded enterprises, manufacturing enterprises and other enterprises, listen to the real situation of enterprise management and development, study and put forward pragmatic and effective policy measures, try our best to help enterprises solve practical difficulties, and work together with government and enterprises to promote high-quality economic development.