Today's editorial

  "Timely RRR cut" demonstrates China's economic resilience

  Fan Dayu

  The strong economic resilience allows my country’s macro-control policies to have sufficient space. Faced with various changes in the external and internal environment, the country can promptly and flexibly introduce various fiscal and monetary policies, including RRR cuts, and have the ability to prevent major upheavals. Dafu guarantees the overall stable operation of the economy.

China's economy has strong resilience and huge potential. It has obvious characteristics of large development space and broad room for maneuver. The vitality of market players is sufficient. It is becoming an important guarantee for promoting the balanced recovery and sustainable development of the world economy.

  Premier Li Keqiang recently met with Georgieva, President of the International Monetary Fund.

Li Keqiang said that in the face of a complex environment and new downward pressure, China will continue to coordinate epidemic prevention and control and economic and social development, implement a stable macro policy, continue to implement a prudent monetary policy, maintain reasonable and sufficient liquidity, and formulate policies based on the needs of market entities. , Use a variety of currency tools, cut the RRR at the right time, increase support for the real economy, especially small, medium and micro enterprises, to ensure the stable and healthy operation of the economy.

  Recently, Omi Keron, a mutant strain of the new crown virus, has sounded a new global pandemic alert. The stock markets of Europe, the United States, Japan, South Korea and other countries have experienced large fluctuations, and economic recovery expectations have been tested again.

The situation at home and abroad is complicated and severe, and my country's economy is under new downward pressure. It is necessary to continue to maintain a stable operation on a high base and face many challenges.

At this time, the highest decision-making level released the "timely RRR cut" message, indicating that my country's monetary policy is likely to remain stable and loose.

  The RRR cut can reduce the capital cost of financial institutions, guide the downward trend of loan interest rates, promote the development of the real economy, and ease the operating difficulties of small, medium and micro enterprises.

The new crown epidemic is currently the biggest threat facing the world economy. At the same time, inflation also poses a major challenge to the recovery of the world economy.

Statistics show that in 2021, the inflation rate of more than 80 countries and regions in the world will hit a five-year high. This year, the overall global inflation rate will reach 4.3%, a 10-year high.

  The U.S. inflation rate rose 6.2% year-on-year in October, the largest increase in 31 years.

Turkey's October inflation rate rose by 20% year-on-year.

In Japan, which has been suffering from long-term deflation and not rising prices, the inflation rate has also turned positive and has risen steadily, driven by soaring energy prices.

In the face of the pressure brought by high inflation, at least 27 countries in the world have raised interest rates this year, and the Federal Reserve has also stated that it will gradually reduce the scale of asset purchases.

  When the developed economies such as the United States began to tighten their monetary policies, my country signaled that the monetary policy remained stable and loose.

This "counter-cyclical adjustment" capability demonstrates the strong resilience of the Chinese economy.

  Since the beginning of this year, my country's development has encountered multiple challenges such as the spread of epidemics in many places, severe floods, rapid rise in commodity prices, and the once-tight supply of electricity and coal.

The central government maintains its strategic determination, resolutely refrains from "flooding flooding", and adopts measures to continuously promote green and low-carbon development, reduce dependence on real estate and debt, and resolutely move towards high-quality development.

A series of recent policies and measures to strengthen energy supply guarantees and stabilize market prices have shown results, power supply tensions have eased, and the prices of some raw materials have dropped significantly.

  At the same time, in the first 10 months of this year, my country’s total export value increased by 32.3% year-on-year, with a trade surplus of more than 510 billion U.S. dollars, and the scale of the surplus was the highest in the same period in history.

The recent strong renminbi exchange rate has continued to unfold, and the resilience of the exchange rate has increased, pushing the renminbi's share of global foreign exchange reserves to a new high since the fourth quarter of 2016.

The deepening of reform and opening up of my country's capital market is in good shape. Major reforms such as the establishment of the Beijing Stock Exchange have been implemented one after another. Since the beginning of this year, foreign investors have accumulated net inflows of over 280 billion yuan through channels such as QFII and Shanghai-Shenzhen Stock Connect.

my country's use of foreign capital has further expanded, surpassing the United States to become the world's largest foreign investment destination. The actual use of foreign capital in the first 10 months of this year exceeded 142 billion U.S. dollars, the highest in the same period in history.

  The strong resilience of China's economy is supported by production, trade, investment, and exchange rates.

The fundamental guarantee for the strong resilience of China's economy is the good effect of my country's epidemic prevention and control.

Since the outbreak of the epidemic, my country has coordinated the overall domestic and international situations, the prevention and control of the epidemic, and economic and social development, and gave full play to the complete advantages of the industrial chain, and the economy has continued to resume development.

  The strong economic resilience allows my country’s macro-control policies to have sufficient space. Faced with various changes in the external and internal environment, the country can promptly and flexibly introduce various fiscal and monetary policies, including RRR cuts, and have the ability to prevent major upheavals. Dafu guarantees the overall stable operation of the economy.

As a super-large economy with strong resilience, the fundamentals of China's long-term economic improvement have not changed. The characteristics of large development space and broad room for maneuver are obvious, and the vitality of market entities is sufficient.

The Chinese economy, with strong resilience and huge potential, is becoming an important guarantee for the balanced recovery and sustainable development of the world economy.

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