China to step up policy adjustment, focus on expanding domestic demand – top decision-making body Politburo

 

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The Politburo of the Central Committee of the Communist Party, the top decision-making body of the party, held a policy meeting chaired by President Xi Jinping on Monday to study the current economic situation and arrange economic work in the second half of the year. 

The economy is currently facing new difficulties and challenges mainly as domestic demand remained sluggish, many companies are facing operational difficulties, more risks are seen in key areas and the external environment is becoming increasingly complex and severe.

China will step up macroeconomic adjustments, focus on expanding domestic demand, lift market confidence, prevent risks, continuously improve the economic operation, strengthen the internal driving force for the economy, improve social expectations and resolve risks and hidden dangers to achieve improvement of the quality of the economic growth and reasonable growth.

The country will make a good use of the policy room, implement macroeconomic adjustment in a targeted and forceful way, step up counter-cyclical adjustment and policy reserve; continue to implement proactive fiscal policy and prudent monetary policy; extend, optimize and improve tax and fee reduction policies, play the role of quantitative and structural monetary policy, vigorously support technology innovation, the real economy and small and micro companies, the Politburo said at a policy meeting on Monday. 

China will make policy adjustments according to the major changes in the supply and demand in the real estate market, optimize real estate policy at an appropriate time, make a good use of city-based policy toolkit, better meet rigid and improvement-based housing demand and promote the steady and healthy development of the real estate market.

The government will actively expand domestic demand by increasing residents’ income, boost effective supply, and integrate domestic demand expansion and supply-side reforms.

China will stimulate the vitality of the capital market and boost investors’ confidence, and meanwhile it will maintain the yuan’s exchange rate largely stable at a reasonable level.

The government will promote big-ticket consumption including autos, electronics and household supplies as well as service consumption such as sports, leisure, culture and tourism.

China should make government investment take more leading roles and accelerate issuance and use of local government special-purpose bonds, it said. 

The country will introduce measures to boost private investment, take various steps to stabilize foreign trade, increase international flight and ensure smooth operation of China-Europe Railway.

China will vigorously promote the construction of a modern industrial system, accelerate cultivating strategically emerging industries and build more pillar industries, it said.

China will continuously deepen reforms and opening up and take concrete measure to increase state-owned enterprises’ competitiveness and improve the environment for the private economy’s development. 

China will promote deep integration of the digital economy with the advanced manufacturing industry and the modern service industry, boost the safe development of artificial intelligence and promote regulated and sustainable development of platform companies. 

China will build a mechanism for regular communications with companies and encourage companies to take risks and actively create market. 

The government will support free trade pilot zones and free trade ports to align with high-standard international economic and trade rules.