Recovering, expanding demand is key to sustained economic growth – China’s top leadership

 

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Recovering and expanding demand is the key to the sustained and positive economic growth, said the Politburo, the top decision-making body of China’s Communist Party, at a meeting on April 28t to analyze and study the country’s economic situation, according to the official Xinhua News Agency.

The current improvement in China’s economic performance is mainly due to recovery, and endogenous power is still not strong enough, with demand insufficient, economic transformation facing new obstacles and challenges remain for promoting high-quality development, it said.

China will step up its proactive fiscal policy and make the prudent monetary policy more targeted and vigorous so that they can form a joint force to expand demand, it said.

The country will accelerate the construction of a modern industrial system supported by the real economy, by accelerating breakthroughs in weak areas and meanwhile taking advantage of opportunities to expand strengths, the Politburo said. 

China will consolidate and expand the advantages of China’s development of new energy vehicle industry, accelerate the construction of charging facilities, energy storage, and other facilities, and transform supporting power grids, it said. 

The country needs to attach importance to general AI development and create favoable environment for innovation, and pledged to promote regulated and healthy development of platform companies and encourage leading platform companies to make innovation, it said.

The government should increase personal income in urban and rural areas, improve the environment for consumption, promote consumption of services such as cultural and tourism and stimulate the private sector’s investment via government investment and policy measures, it said. 

It should also eliminate legal and regulatory barriers and implicit obstacles that affect the fair competition and common development of various ownership enterprises, and boost business entities’ confidence and help companies recover, it said.

China will deepen reform and expand high-level opening-up, attach greater importance to attracting foreign investment, stabilize foreign trade and support pilot free trade zones and free trade ports to connect with high-standard international economic and trade rules, it said.

In terms of the real estate sector, China will stick to the policy stance that “housing is for living, not for speculation”, take a city-specific approach to support both rigid and upgrade-based housing demand, do a good job in ensuring property delivery, people’s livelihoods and stability, promoting the stable and healthy development of the real estate market, and promoting the establishment of a new mode for the industry’s development, it added.