Chinanews Client Beijing, August 6th (Reporter Li Jinlei) The external environment has deteriorated, external demand has shrunk, and China's economic strategy has undergone major changes!
On July 30, the Politburo meeting decisively set the tone to "firmly grasp the strategic basis of expanding domestic demand" and "accelerate the formation of a new development pattern with domestic and international cycles as the main body and mutual promotion of domestic and international cycles."
Careful people will notice that the formulation of the Entrepreneur Forum held on July 21 is "gradually forming a new development pattern with the domestic cycle as the main body and the domestic and international dual cycles mutually promoting each other." The change from "gradual formation" to "accelerated formation" has made the wording more urgent, and it also reflects the signal of China's economic acceleration.
Nowadays, various ministries and commissions and localities have taken action, one after another, around the "double cycle" and the expansion of domestic demand, the deployment of work in the second half of the year, we can see some trends.
Lively night market. Photo by Zhao Guihua
Take multiple measures to boost consumption
To expand domestic demand, both consumer demand and investment demand are indispensable. According to data from the National Bureau of Statistics, the decline in consumption has narrowed for four consecutive months in the first half of the year, but the growth rate has not yet turned positive.
The Politburo meeting called for continuous expansion of domestic demand, overcoming the impact of the epidemic, expanding final consumption, and creating conditions for the upgrading of household consumption.
In response to the expansion of final consumption, many ministries have proposed specific measures.
On July 30, the National Development and Reform Commission held a video conference on the development and reform work in the first half of the year, proposing to highlight the focus of work, focus on stabilizing economic operations, and detailed implementation of policies and measures to expand domestic demand and promote the formation of a strong domestic market.
On July 31, the Ministry of Commerce held the 2020 Mid-year Ministry of Commerce Party Group Expansion Meeting, and proposed multiple measures to promote consumption, work hard on innovative circulation, promote consumption, increase urban consumption, expand rural consumption, and develop service consumption.
In addition, the Ministry of Commerce recently issued a notice that it will organize various localities to take advantage of the traditional consumption peak season of “Golden Nine and Silver Ten” to hold the 2020 National “Consumption Promotion Month” event, which will be held from September 9th to October 8th.
The Ministry of Industry and Information Technology recently convened a teleconference with comrades in charge of the national industry and informatization authorities, requesting multiple measures to boost consumption, and fully implement the "same line, same standard, same quality" of domestic and foreign products; focus on stabilizing traditional bulk consumption, and increase buses and taxis In addition to the public sector’s efforts to replace new energy vehicles, carry out new energy vehicles to the countryside; accelerate the development of new consumption formats, and promote the deep integration of the Internet and various consumption formats.
At the local level, Jiangsu Province recently issued the "Implementation Opinions on Accelerating the Promotion of Consumption Circulation and Expansion of Commercial Consumption", and introduced 25 new policies to promote circulation and expansion of consumption, including the organization of "automobiles to the countryside" promotion activities, and support for qualified areas to sell home appliances to the countryside. Appropriate subsidies will be given to consumers to purchase bulk commodities such as home appliances to enhance the immediate consumption ability of low- and middle-income groups.
Xu Hongcai, deputy director of the Economic Policy Research Institute of the China Policy Research Society, told a reporter from Chinanews.com that it is necessary to create a market environment conducive to consumption promotion, promote fair competition, combat counterfeiting, and improve product quality, so that consumers can eat and use with confidence. Rest assured, vigorously cultivate emerging consumption represented by online consumption, so that consumers "can consume, dare to consume, and willing to consume."
On June 6th, the Huangmao Sea Cross-sea Channel project officially started, and a new cross-sea channel was added to the Guangdong-Hong Kong-Macao Greater Bay Area. The picture shows the design renderings of the Huangmao Sea Cross-sea Passage Project. Photo courtesy of Guangdong Transportation Group
Strive to expand effective investment
The Politburo meeting called for a long-term view, actively expanding effective investment, and encouraging social capital to participate. It is necessary to speed up the construction of new infrastructure, deepen the promotion of major regional development strategies, and accelerate the implementation of major national strategic projects. New types of urbanization should drive investment and consumer demand, and promote the innovation of systems and mechanisms for the integrated development of urban agglomerations and metropolitan areas.
Observation shows that "two new and one heavy" (new infrastructure construction, new urbanization construction, and major project construction) have become the focus of deployment by various ministries and commissions.
The National Development and Reform Commission recently stated that it will continue to work with relevant parties to focus on key aspects of the country’s major strategies, “two new and one heavy” and shortcomings, precise financing, precise projects, precise policy implementation, advance the construction of major engineering projects, and rationally expand effective investment. Further play the key role of investment.
On August 4, the National Development and Reform Commission issued an official reply on the construction plan of the Guangdong-Hong Kong-Macao Greater Bay Area Intercity Railway. In terms of near-term construction arrangements, 13 intercity railways and 5 hub projects are planned, with a total mileage of about 775 kilometers, forming an intercity railway network with strengthened main axis, regional coverage, and hub connections. The total investment in recent construction projects is about 474.1 billion yuan.
The Ministry of Industry and Information Technology pointed out that it actively expands effective investment, promotes accelerated investment in major manufacturing projects, and supports enterprises to strengthen intelligent, green, high-end, and service-oriented transformation. Speed up the construction of new infrastructure such as 5G.
At the local level, on August 4, the Anhui Provincial Party Committee held an enlarged meeting of the Standing Committee, and proposed to focus on project expansion and investment, focusing on the "two new and one heavy" and advanced manufacturing industries, and placing the expansion of investment in major projects such as water conservancy and transportation in an important position.
Shanxi Province held the 76th executive meeting of the provincial government on July 31, and proposed that in accelerating the formation of a new development pattern in which the domestic cycle is the main body and the domestic and international double cycles promote each other, they should pinpoint their positions, seize opportunities, and study and launch a number of transformative , Traction, landmark measures, planning to implement a number of major projects.
Liu Lifeng, a researcher at the Investment Research Institute of the Chinese Academy of Macroeconomics, said that as an important short-term demand factor for economic growth, investment has the characteristics of quick results and strong pulling effect. But investment is not to blindly expand the scale, but to promote effective investment growth, to achieve structural adjustment, make up for shortcomings, strengths and weaknesses.
Data map: Visitors are watching 5G equipment. Photo by China News Agency reporter Jiang Qiming
Continue to expand opening up and stabilize foreign trade
"With the domestic big cycle as the main body, it is by no means a closed door to operate, but by leveraging the potential of domestic demand, making the domestic market and the international market better connected, making better use of the two international and domestic markets and two resources to achieve a stronger Sustainable development.” pointed out the entrepreneurs' symposium held on July 21.
The Politburo meeting of the Central Committee further requested that greater efforts should be made to promote reform and opening up, use deepening reform methods to optimize the business environment, implement the three-year action plan for the reform of state-owned enterprises, and continue to expand opening up.
The Ministry of Commerce made it clear that it must go all out to stabilize foreign trade, work hard to stabilize foreign trade entities, increase policy support, cultivate new business models and new models, and successfully run the third CIIE. Do everything possible to stabilize foreign investment, work hard to stabilize the stock of foreign investment, expand the increase in foreign investment, further expand opening up, and optimize the business environment.
The Ministry of Commerce also revealed on July 30 that the executive meeting of the State Council has studied the relevant work of the new round of service trade innovation and development pilots, and reviewed and approved in principle a new round of deepening pilot programs. The Ministry of Commerce is advancing the relevant work of the new round of pilot projects in accordance with the procedures and will promptly release the new round of pilot list in the near future.
The General Administration of Customs also stated recently that it will continue to promote the implementation of various tasks of stabilizing foreign trade and foreign investment, continue to optimize the port business environment, stimulate the vitality of market players, and promote the steady growth of foreign trade.
On August 3, Guangdong, as a major foreign trade province, held a meeting of the Standing Committee of the Provincial Party Committee, and proposed to grasp the general trend, give full play to the advantages, and fully participate in the domestic and international dual cycles. Promote reform and opening up more vigorously, and make better use of both domestic and international markets and resources.
Moreover, the epidemic has not stopped China from opening up. Recently, the National Development and Reform Commission and the Ministry of Commerce announced the 2020 version of the negative list for foreign investment access, and the negative list has been further reduced.
A recent questionnaire survey by the Ministry of Commerce showed that 99.1% of foreign-funded enterprises indicated that they would continue to invest and operate in China. Volkswagen of Germany has invested about 2 billion euros in Anhui, and Nestlé has invested 730 million yuan in Tianjin to build a new product line. This shows that China, as a world market, is still optimistic about its economic prospects by foreign investors.
Guan Tao, chief economist at Bank of China Securities, believes that with the domestic cycle as the main body and the expansion of domestic demand as the strategic basis, it is not to close the country and actively decouple, but to further expand high-level opening up, especially from the flow of commodities and factors. Type opening to system type opening, opening up the country for construction.
The picture shows the container terminal of Xiuying Port in Haikou. Photo by Luo Yunfei
Crack down on illegal crimes in the capital market
Regarding the stock market, the Politburo meeting proposed that it is necessary to promote the construction of the capital market infrastructure, strictly crack down on illegal securities activities in accordance with the law, and promote the stable and healthy development of the capital market.
On July 30, the China Securities Regulatory Commission held the 2020 System Mid-year Work Conference and Warning Education Conference to implement the "zero tolerance" requirement and severely crack down on illegal and criminal activities in the capital market.
The China Securities Regulatory Commission stated that the implementation of work arrangements will continue to increase the crackdown on vicious criminal cases such as fraudulent issuance, financial fraud, insider trading, market manipulation, etc., promote the establishment of a coordination mechanism for combating illegal activities in the capital market, and promote the establishment of administrative law enforcement, civil recovery and The three-dimensional and organic system of criminal punishment is connected and supports each other.
The voice did not fall. On July 31, the China Securities Regulatory Commission announced the investigation and disposal of Ruixing Coffee's financial fraud, and has served the parties involved in the case with an advance notice of administrative punishment; the Ministry of Finance said that it has completed the inspection of the accounting information quality of Ruixing Coffee's domestic operating entities , Ruixing Coffee inflated revenue of 2.119 billion yuan and inflated profits of 908 million yuan; the State Administration for Market Regulation said that it is currently investigating Ruixing Coffee’s suspected fraudulent transactions and other unfair competition behaviors.
Liu Feng, chief economist of China Galaxy Securities, told a reporter from Chinanews.com that to increase the service of the capital market to the real economy, it is necessary for good companies that lack money to obtain further support from the capital market. Where does the money come from? It is necessary for ordinary people to invest and dare to invest. To maintain the people's confidence in the capital market, strict law enforcement and strict supervision must be required to send a clear signal of "zero tolerance".
Data map: real estate. Photo by China News Agency reporter Zhang Bin
Emphasize that housing should not be speculated, and speculators must be "cool"
Regarding the real estate market, the Politburo meeting proposed that it is necessary to adhere to the positioning of houses for living, not for speculation, and to promote the stable and healthy development of the real estate market.
The local government responded.
Shanghai held an executive meeting of the municipal government on July 30, clarified and firmly adhered to the positioning of "housing to live without speculation", and resolutely implemented the "one city, one policy" normal and long-term mechanism to stabilize land prices, house prices, and expectations to ensure a stable and healthy market development of.
On July 31, Shenzhen issued the "Notice on Suspension of Commercial Apartment Approval", suspending commercial apartment project approval, reducing the proportion of commercial land and increasing the proportion of residential and supporting land. Containing another real estate speculator.
The signal of tightening of the property market is clear.
On July 20, the China Banking and Insurance Regulatory Commission held a 2020 mid-year work seminar and a disciplinary inspection and supervision work (telephone) meeting to resolutely prevent the resurgence of shadow banking, the resurgence of real estate loans, and the resumption of blind expansion and extensive operations.
The real estate work symposium held on July 24 also emphasized that the string of real estate regulation should be tightened at all times to prevent illegal capital flowing into the real estate market.
Zhang Dawei, chief analyst of Centaline Property, told a reporter from Chinanews.com that as the policy is set, many cities have begun to tighten property market regulation. Overall, the real estate market policy will continue to be stable in the second half of the year.
Zhang Bo, Dean of 58 Anju Guest House Property Research Institute, predicts that in the second half of the year, real estate regulation will be tighter and more timely in stabilizing land prices, housing prices, and stabilizing expectations. The property market may cool down in the third quarter. (Finish)