China is accelerating the introduction of a series of new policies aimed at promoting economic development, according to Zheng Shanjie, chairman of the National Development and Reform Commission (NDRC). Speaking at a press conference on Tuesday, Zheng emphasized the government's commitment to counteracting downward pressures on the economy through strengthened macroeconomic policies.
To support this initiative, the Chinese government has allocated 700 billion yuan in the central budget to invest in major projects related to national development and security. \"Next year, we plan to continue issuing ultra-long-term special bonds and optimize their allocation to further support the economy,\" Zheng announced.
Enhancing Domestic Demand
Boosting domestic demand has been identified as a government priority. Zheng outlined plans to focus on improving livelihoods and stimulating consumption while leveraging investment to drive growth. Key strategies include increasing incomes for middle- and low-income groups, promoting large-scale equipment upgrades to enhance commodity consumption, improving elder care and childcare services, and fostering new consumption models such as digital and green consumption.
Supporting Businesses and Optimizing the Business Environment
Addressing the challenges faced by many businesses, Zheng promised greater support to help them overcome difficulties. He emphasized the importance of optimizing the business environment, stating that the government will further regulate the enforcement actions of administrative agencies concerning enterprises. This includes promptly alerting regions where fines or confiscated revenues have increased unusually and conducting inspections when necessary.
The government also plans to accelerate the legislative process to create a favorable environment for the development of the non-public economy, providing a boost to private enterprises and investors.
Tackling the Real Estate Market and Revitalizing Capital Markets
In response to the weak real estate market, Zheng said comprehensive measures will be implemented to promote stabilization. Effective strategies are also planned to revitalize the capital market, address recent fluctuations, and boost investor confidence.
Confidence in China's Economic Resilience
Zheng highlighted that the overall operation of China's economy remains stable, with new productive forces forming at an accelerated pace and high-quality development advancing deeply. \"The fundamental conditions for economic development in China remain strong, with significant market potential and resilience,\" he stated, expressing confidence that China will achieve its annual economic goals while maintaining sustained, stable, and healthy development moving forward.
Recently, China announced a slew of policies, including monetary easing, lowering mortgage rates, and easing house-buying restrictions ahead of the National Day holiday from October 1 to 7. These measures have led to a rapid increase in second-hand home transactions and a stock market surge on the first day after the holiday.
Reference(s):
China introduces package of incremental policies to boost economy
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