China Economy: Chinese officials stress macroeconomic policy support to promote high-quality development
We begin with measures to bolster China’s real economy where policymakers today stressed the importance of macroeconomic policy support to boost the economy and drive high-quality development. Gao Ang reports.
A proactive fiscal policy.
A prudent monetary policy.
Improving tax and fee reduction while supporting technological innovation, the real economy, and small and micro enterprises.
These are the macroeconomic priorities set out by Chinese government officials in Beijing on Friday.
YUAN DA Director, Department of National Economy National Development and Reform Commission “In terms of improving the quality of supply, we have introduced measures to accelerate the development of advanced manufacturing clusters, promote the high-quality development of new energy vehicles, and support the financing of technology-based enterprises.”
Other measures include expanding effective demand, such as boosting spending on household goods and electronic products, as well as deepening reform and opening up. As for monetary policy, officials said China’s central bank has maintained sufficient liquidity and offered strong support for major sectors such as manufacturing, green development and small and medium-sized enterprises.
ZOU LAN Head, Monetary Policy Department People’s Bank of China “We will keep the interest rate at a reasonable level. We will not only make timely and appropriate counter-cyclical adjustments according to the economic and financial situation and the needs of macro regulation, but also take into account the balance between growth and risks, internal and external.”
As for fiscal policy, officials said that they would increase the tax and fee preferences for small and micro enterprises and individual industrial and commercial households, so as to boost their confidence and stabilize market expectations.
GAO ANG Beijing “Officials stressed the next step will include expanding domestic demand, supporting the real economy, boosting technological self-reliance and self-improvement, and promoting employment and income. GA, CGTN, Beijing.”