On October 8, 2024, the State Council Information Office of China announced a new package of incremental policies aimed at promoting economic restructuring and continuous improvement in development trends. The swift rollout of these measures underscores the government’s commitment to high-quality development and has garnered widespread attention from businesses and the public alike.
Focusing on five key areas—strengthening counter-cyclical macroeconomic policy adjustments, expanding effective domestic demand, increasing support for enterprises, stabilizing the real estate market, and boosting the capital market—the policies are expected to effectively promote sustained economic growth.
The policy package is notable for its emphasis on stability and efficiency, two crucial factors as China approaches the end of its 14th Five-Year Plan.
Stability: Laying a Strong Foundation
With more than two months remaining in the year and a stable 5 percent growth rate from the first half, the implementation of these policies is likely to surpass the full-year growth target of around 5 percent. Stability not only ensures the fulfillment of the 14th Five-Year Plan’s goals but also lays a solid foundation for the upcoming 15th Five-Year Plan. By introducing targeted incremental policies now, China aims to successfully conclude the current plan and set the stage for future development.
Efficiency: Demonstrating Government Resolve
The process from policy proposal to implementation took a mere 12 days, highlighting the government’s high efficiency and determination to promote high-quality development. From the initial proposal to “step up efforts to roll out incremental policies” at a meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee on September 26, to arrangements made at the State Council executive meeting on September 29, and finally to the official announcement on October 8, the rapid progression is unprecedented. The impact of these policies is expected to become evident in the coming months.
By addressing both stability and efficiency, the Chinese government is signaling its dedication to sustaining economic momentum and ensuring a prosperous future. As these policies take effect, they are anticipated to foster an environment conducive to growth, benefiting enterprises and boosting investor confidence.
The swift and decisive action taken by the government reflects a proactive approach to economic management, emphasizing the importance of adaptability in the face of global economic challenges. Businesses, investors, and academics around the world will be watching closely as China implements these measures, which may hold valuable insights for other economies seeking sustained growth.
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Efficient policy rollout shows commitment to high-quality development
cgtn.com
