China will promote effective demand for a stronger economic recovery
China will continue to implement more policies to expand effective demand and enhance the driving force of economic recovery and growth, according to decisions made at the State Council executive meeting chaired by Premier Li Keqiang on Thursday.
The meeting noted that the Chinese economy is in a critical period of stabilization and recovery, and the third quarter is of vital importance. It is essential to effectively coordinate the COVID-19 response with economic and social development, and to continue to deliver the policy package to stabilize the economy.
The meeting called for greater efforts to be made to consolidate the foundations of economic recovery, stabilize general economic performance, and maintain key economic indicators within the appropriate range, with priority given to job security and price stability.
There is still plenty of room to highlight the effects of policy-supported, development-oriented financial instruments and special purpose bonds. These measures will help in attracting a large amount of private investment and should be carried out in accordance with market principles.
Efficient investment should be fully used to strengthen weak links, facilitate structural adjustments, stimulate consumption and create jobs, so as to capitalize on its key role in economic recovery and growth.
The meeting decided to establish a coordination mechanism to promote major investment projects. To ensure consistency and efficiency, the relevant departments will conduct a joint review of projects prior to final approval.
Approved projects should provide immediate and long-term benefits, help support economic and social development, comply with the 14th Five-Year Plan and other plans, generate economic returns and should start operations as soon as possible.
Land use and energy consumption quotas for major projects will be determined separately in accordance with relevant regulations. The development of competitive industries will continue to be guided by market rules.
The meeting urged accelerating the use of special purpose bonds and directing commercial banks towards supportive financing. The newly added credit line should be delivered from the monetary policy banks in a timely manner.
Governments at all levels must ensure that projects are implemented at a faster pace and that quality requirements are met. They will ensure that operations at construction sites do not stop and related manufacturing and supply chains remain uninterrupted, in an effort to generate more material gains in the third quarter. More employment opportunities will be provided to migrant workers through public works programs where possible.
Interagency working groups will be dispatched in due course to oversee and facilitate project delivery. Management and review will be strengthened to ensure project quality and discourage corruption.
The meeting noted that consumption is closely related to people’s lives and should remain a major driver of growth.
Financial institutions will be encouraged to offer more flexible arrangements for personal consumer loans affected by COVID-19. City-specific policies will be adopted to promote the steady and sound development of the real estate sector. The basic housing needs of the people will be met and their desire to improve housing conditions will be supported as appropriate.
Specific measures will be introduced for the proper and orderly development of the platform economy. Platform companies will be advised to legally implement comprehensive financial services.
The role of the platform economy in creating jobs and stimulating consumption should be given full play. Financial support for the import and export sectors will be increased, and services such as exchange rate hedging will be provided to enterprises in an active manner.