(Economic Observation) "Six Guarantees" Frequently Occurs at the State Council's Table

  China News Agency, Beijing, May 13 (Reporter Wang Enbo) Chinese Premier Li Keqiang presided over a State Council executive meeting on May 13, demanding that the "six guarantees" be the focus of the "six stability" work and stabilize the economic fundamentals.

  The reporter sorted out and found that the topic of "six guarantees" has appeared on the State Council's deliberations many times recently. For example, on May 11, when Li Keqiang presided over a symposium held by the heads of all the democratic parties, the Central All-China Federation of Industry and Commerce and representatives of non-partisan representatives, the focus of policy adjustment should be on six stability and six guarantees, highlighting the protection of employment and basic livelihood , Maintain market players, ensure food and energy security, ensure stable supply chains in the industrial chain, and ensure basic-level operations.

  The executive meeting of the State Council held on May 6 emphasized that the "six guarantees" should be taken as the focus of the "six stability" work and the economic fundamentals should be stabilized. On April 23, Li Keqiang chaired a video seminar on the economic situation of some provinces and cities, saying that in response to the severe impact of the epidemic and stabilizing China ’s economic fundamentals, it is necessary to intensify macroeconomic policy adjustments and earnestly implement the "six guarantees" and strive to achieve "Six stable".

  Why does the government attach so much importance to the "six guarantees"? The latest executive meeting of the State Council gave a clear answer: the more uncertainty increases, the greater the meaning of "guarantee".

  The goal of dismantling the "six guarantees" is not difficult to see. They are aimed at highlighting current contradictions and hidden risks, and are positive measures to face and overcome difficult challenges. For example, under the epidemic, China ’s employment pressure has increased, and the first two of the “six guarantees” for ensuring residents ’employment and basic livelihoods have highlighted official concerns about people ’s livelihood. As the most basic unit of economic operation, protecting the market body helps prevent the epidemic's impact on the economy from short-term to long-term development, thus laying a foundation for the people's livelihood.

  In addition, the inflection point of the current global epidemic has not yet arrived, the complex and severe situation at home and abroad, ensuring food and energy security, ensuring the stability of the supply chain of the industrial chain, and maintaining grassroots operations are important prerequisites for firmly holding the economic development initiative in your own hands.

  Talking about how to realize the "six guarantees", the executive meeting of the State Council made it clear that it is necessary to increase the macro-control hedging, give full play to the joint efforts of fiscal, monetary, social security, employment and other policies, and implement more precise around the "six guarantees" and "six stability" Regulation.

  Earlier, Chinese officials had announced a policy package to keep the economy running smoothly. As the epidemic spreads globally, the Chinese economy is facing a "second shock". From the signals revealed at the meeting, the relevant policies are expected to be further increased.

  Lian Ping, chief economist and director of the Research Institute of Zhixin Investment, pointed out that the current Chinese economy is facing multiple pressures: the epidemic has caused the economy to fall into a “shutdown” for a time; at the same time, the Chinese economy is in a period of transition pains, and the supply-side structural reform is positive Advancement in the deep-water area makes it necessary to expand demand, stabilize growth, and stabilize employment-related measures. To this end, an accurate grasp should be found.

  "In order to respond to the impact of the epidemic and promote high-quality economic development, China attaches great importance to the 'new infrastructure' and uses it as one of the financial measures to promote innovation and respond to economic slowdown." Jérôme Jean Haegeli, chief economist at Swiss Reinsurance Group ) It seems that the "new infrastructure" is expected to be the starting point.

  He told a reporter from China News Service that this signifies that China is gaining a foothold in the country, and by stimulating domestic demand to mitigate the risks caused by external resistance such as the global economic recession and epidemic-caused supply chain disruption this year.

  In addition, reform and opening up will continue to be an important weapon for China's economy to face the hidden dangers of risks as a key trick to cracking development problems in China.

  The executive meeting of the State Council pointed out that it is necessary to step up reform and opening up, respect the grassroots initiative, work hard on improving the foundation and long-term institutional mechanisms, and stimulate the vitality of market players and social creativity. It is necessary to expand the opening up, stabilize the supply chain of the industrial chain while promoting win-win cooperation with all parties, and continuously enhance the resilience and potential of economic development.

  An Renli noticed that not long ago China officially announced the first factor marketization configuration file. He believes that this move shows that China will improve the market-oriented allocation efficiency of production factors such as land, labor, and capital, while accelerating the development of technology and data element markets, and promoting the development of the digital economy. "This will enable China to further deepen reform and opening up and lay a solid foundation for achieving high-quality development, building a modern economic system, and improving the resilience of the economic system." (End)