Shanghai Securities News reporter Li Yuan reported that to promote sustained and stable economic development, a number of policies to stabilize the economy and increase growth are expected to be implemented one after another in the near future. These policies cover key areas such as “two new”, “two major”, and stabilizing foreign trade. Industry experts point out that the early introduction of incremental policies can effectively stabilize market expectations, quickly exert policy effectiveness, and contribute to high-quality economic development.
The “two new” policies have been intensified and expanded to stimulate new vitality in domestic demand
Since the beginning of this year, the “two new” (new industries and new consumption) policies have been continuously intensified and expanded, becoming an important engine for stimulating domestic demand and promoting economic growth. The latest data demonstrates the remarkable effectiveness of the policy implementation: The purchase subsidies for new digital products such as mobile phones have driven sales exceeding 140 billion yuan. The retail sales of home appliances have maintained double-digit growth for eight consecutive months. In the first four months of this year, the investment in the purchase of equipment and tools increased by 18.2% year-on-year, and the market consumption vitality has been continuously released.
Journalists have learned that the National Development and Reform Commission will continue to make efforts in multiple aspects in the future. In terms of fund management, we will accelerate the process of fund allocation, work with the Ministry of Finance to complete the settlement of funds for the 2024 consumer goods trade-in program as soon as possible, and allocate the subsequent fund quotas. Meanwhile, a direct and fast access mechanism for ultra-long-term special Treasury bond funds should be established to improve the efficiency of fund utilization. In terms of reducing enterprise costs, we should promptly introduce and intensify the implementation of the loan interest subsidy policy for equipment renewal to effectively lower the financing costs for equipment renewal for all types of business entities. To enhance the consumer experience and relieve the pressure on business entities, efforts will also be made to encourage relevant departments to simplify the subsidy application process, clarify the time limit for review and payment, and implement the advance fund system.
Focus on the “two major” construction and strengthen the key role of investment
Investment has always played a key role in maintaining stable growth, adjusting the structure, fostering growth momentum, benefiting people’s livelihood and preventing risks. As of now, over 5,000 specific projects involved in the 102 major projects under the 14th Five-Year Plan have accomplished 99% of the planned targets and tasks, achieving significant phased results in engineering construction.
A responsible person from the National Development and Reform Commission disclosed that efforts will be made to issue the list of all projects for the “two major” (major strategies and major projects) construction and central budgetary investment in 2025 by the end of June. Meanwhile, to address the issue of insufficient capital for project construction, new policy-based financial tools will also be established. Recently, many regions have responded positively, holding relevant working meetings one after another, and carefully planning and reserving new policy-based financial tool projects. Emerging industries and green development have become key areas of focus. According to Tao Chuan, chief economist of Minsheng Securities Research Institute, the quota of new policy-based financial tools may reach around 500 billion yuan. If its investment leverage effect is comparable to that of the policy-based and development-oriented financial tools in 2022, it is expected to drive effective investment of 6 trillion to 6.5 trillion yuan, injecting strong impetus into economic growth.
Adopt multiple measures to stabilize foreign trade and smooth the dual circulation
As a key hub for unblocking the dual circulation at home and abroad and one of the “three horses” driving economic growth, the stable development of foreign trade is of vital importance. Sheng Qiuping, vice minister of the Ministry of Commerce, said that they will increase financial support and strive to reduce the domestic sales costs of foreign trade enterprises. The relevant departments will further expand the underwriting scale and coverage of export credit insurance to provide a solid guarantee for foreign trade enterprises to take orders and enhance their confidence in international market competition.
The policy for stabilizing employment has been upgraded to consolidate the bottom line of people’s livelihood
In terms of stabilizing employment, Yu Jiadong, vice minister of the Ministry of Human Resources and Social Security, said that they will accelerate the introduction of additional policies. Specific measures include increasing support for enterprises to expand jobs and encouraging them to create more job opportunities; Increase employment subsidy support for individuals to help workers achieve employment and entrepreneurship; For enterprises that are significantly affected by tariffs, the proportion of unemployment insurance stability returns will be raised to help them maintain stable employment.
Li Zhan, an economist from the Research department of China Merchants Fund, further suggested that a series of measures, including job stability returns, guaranteed loans, employment subsidies, vocational skills training and expanding work-for-relief programs, should be introduced as soon as possible. At the same time, public employment services should be strengthened and the policy intensity should be appropriately increased. In addition, in terms of stabilizing exports and strengthening economic and trade cooperation, especially for key foreign trade regions such as the Yangtze River Delta and the Pearl River Delta, targeted support measures of “one industry, one policy” and “one enterprise, one policy” should be implemented to precisely solve the development problems of enterprises.
The relevant departments have clearly stated that they will adhere to conducting regular and open policy research and reserve work, continuously enrich and improve the policy toolkit for stabilizing employment and the economy, and ensure that effective policies can be promptly introduced and implemented when economic development faces challenges. Wang Qing, chief macro analyst at Orient Jincheng, predicts that there is still considerable room for “moderate easing” in monetary policy in the second half of the year, and fiscal policy will also introduce further incremental measures to boost consumption and expand investment. The continuous implementation of domestic macro policies will become the most certain factor for stabilizing economic operation and provide a solid guarantee for the steady and long-term development of China’s economy.
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