The central authorities have stressed the importance of implementing existing pro-growth policies and introducing incremental policies. The release of a package of incremental policies by different departments over the past days has sent a strong signal of greater efforts to stabilize growth and effectively boost market expectations.
Since the beginning of this year, the domestic and international development environments have remained complex. The growth momentum of major economies in the world is weak, their debt burden is heavy, the international market has been fluctuating significantly and global trade protectionism has intensified amid increasing uncertain and unstable factors. From a domestic perspective, China’s effective demand is still insufficient, some industries and enterprises face more difficulties in production and operation, and people’s livelihoods still have great potential to be improved.
Yet the Chinese economy’s long-term positive fundamentals have not changed, and its favorable conditions, such as a broad market, strong economic resilience and great potential, have remained unchanged. The policymakers still have a large room for maneuvering with many policy tools at their disposal. That means the world’s second-largest economy still has the ability and conditions to strengthen macroeconomic regulation.
The package of incremental policies launched recently closely focuses on the practical difficulties hindering economic and social development. It coordinates policy measures in various fields such as finance, consumption, investment, real estate, the stock market, employment, and people’s livelihoods. At the same time, the incremental policy package adheres to the combination of long-term and short-term needs, attaching importance to resolving the current difficulties and problems, as well as major problems dragging on the medium- and long-term development of the economy.
The package of incremental policies involves all aspects of deepening reform. A number of reform measures that are mature and conducive to achieving sustainable and healthy economic development are being introduced at an accelerated pace. For example, lawmakers are soliciting public opinions on a draft law on promoting the private economy; the government will release a new version of the negative list for market access and establish a mechanism for future industrial investment growth.
The key to stabilizing growth is to stabilize enterprises’ performance. To that end, the policymakers must do a good job in helping enterprises to alleviate their difficulties through implementing well-targeted policies, and put an end to arbitrary fees and fines imposed on enterprises, so as to enhance the business environment and consolidate the market’s confidence.
The implementation of various policies to promote growth, employment and consumption in the fourth quarter is of great significance to the economic development of the whole year. Governments at various levels should pay special attention to carrying out the policies to the letter and refrain from paying only lip service to them.