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(Economic observation) Third quarter GDP will be announced soon, China’s official launch of a clear signal to stabilize the economy.
China News Service, Beijing, October 13 (Reporter Wang Enbo) Chinese Premier Li Keqiang recently chaired a video symposium with key leaders of some local governments to study and analyze the economic situation and promote the next economic and social development. This meeting, which was held on the eve of the release of economic data such as GDP growth in the third quarter, sent a clear signal: China will consolidate its economic stability and resume its growth momentum and ensure the fulfillment of its objectives and tasks of annual development.
Under the epidemic, the world economy is very cold, but China is an exception. The World Bank recently released the East Asia and Pacific Region Economic Report, which raised the forecast for China’s economic growth this year to 2%, which is one percentage point higher than the June forecast.
In response to the current economic situation, Li Keqiang also pointed out at the symposium that China’s economy has stabilized its fundamentals amid enormous difficulties and challenges and is showing a steady recovery in growth, which is not easy.
Some of the recently released leading indicators provide an important footnote on China’s economic recovery trend seen by all parties.
Electricity data is the “barometer” of the economy. State Grid Chairman Mao Weiming reported in an interview with a reporter for the China news agency that the company’s monthly electricity sales have achieved positive growth since May and the growth rate reached 9.8%. in August. The growth rate of accumulated electricity sales has recovered month by month. The growth rate has changed from negative to positive and the annual growth rate is expected to be between 1.5% and 2%. Reflecting the strong momentum of China’s economic recovery, the effects of policies are constantly showing.
Ding Shuang, Chief Economist for Greater China and North Asia at Standard Chartered Bank, noted that China’s manufacturing and non-manufacturing PMI improved further in the third quarter compared to the second quarter, indicating that the expansion of the production has accelerated. Thanks to strong production activities and a strong recovery in the service industry, China’s GDP growth rate in the third quarter is expected to accelerate more than in the second quarter.
However, as today’s domestic and foreign environments remain complex and harsh, and uncertainties increase, hard work is still required to complete the annual goals and tasks. Especially time has entered the fourth quarter, we must strive for positive economic growth throughout the year, time is tight and tasks are heavy.
According to the information announced at the symposium, in the face of a complex situation, China will advance from four aspects.
First, cut taxes and fees to make a profit. This is important support to help businesses get out of trouble and is also a key measure for current economic stability and recovery. According to data from the State Administration of Taxation, from January to August, China’s new tax cuts and tariff reductions totaled RMB 1,877.3 billion.
For the rest of this year, this job will continue to work hard. Li Keqiang said that we should continue to pay close attention to policy implementation in the coming months and make more precise use of direct financial funds. We must ensure that market entities deliver on all promises and we will never commit to improving their development capabilities. Governments at all levels must insist on leading a strict life and resolutely avoiding centralized tax collection and dividends from arbitrary tariff reduction policies. Expand the coverage of inclusive finance and provide effective financial services to smaller, medium and micro businesses and difficult industries.
Second, accelerate the development of new kinetic energy. Under the epidemic, some new business formats and new industries have accelerated their rise, and new working models and forms of cooperation such as online education, online entertainment, online health care and the “cloud office” have come to the fore.
This new momentum generated in the prevention and control of the epidemic actually represents the future direction of China’s economic development. At the symposium, Li Keqiang called for actively mobilizing market forces, developing new business forms and new models, promoting the accelerated integration of online and offline consumption, and the synergy of new and traditional consumption, in order to unleash the consumption potential to stimulate economic growth.
Third, promote reform and openness. As a key strategy for China to solve development problems, reform and openness will continue to be an important weapon for the Chinese economy to cope with uncertainty.
Li Keqiang said that we must continue to promote reform and openness, optimize the business environment, and stimulate market vitality and social creativity. Continually deepen reforms such as decentralization, regulation, and service, so that more new market players can emerge and grow, and strengthen economic resilience and vitality. Unwaveringly expand openness, implement the stabilization policy of foreign trade and foreign investment, expand the import and export space, and strive to maintain the stability of the industrial chain and supply chain.
Fourth, we must do a good job of basic subsistence tasks. Especially in response to the increased job pressure under the epidemic, Li Keqiang proposed that multiple measures should be taken to promote the employment of key groups such as university graduates and migrant workers.
Zeng Xiangquan, director of the China Employment Research Institute at Renmin University of China, noted that since the second quarter, China has unprecedentedly increased the implementation of the “guaranteed employment” policy, which has had a positive impact on the labor market and has achieved significant results. In the future, we will continue to strengthen the monitoring and analysis of the employment structure and quality of employment, and we will formulate more specific employment promotion policies. (Finish)
