China News Service, Beijing, March 6 (Reporter Liu Liang) The 2024 Chinese government work report includes "strengthening efforts to expand domestic demand" on this year's work task list, requiring better coordination of investment and consumption.
The report proposes a number of “new” measures worthy of attention.
On March 5, the second session of the 14th National People's Congress opened in the Great Hall of the People in Beijing.
Photo by China News Service reporter Sheng Jiapeng
First, consumer goods are traded in for new ones.
The fourth meeting of the Central Financial and Economic Commission held in February studied the issue of large-scale equipment renewal and trade-in of consumer goods.
The government work report also focuses on this, proposing to encourage and promote the replacement of old consumer goods with new ones, and boost bulk consumption such as intelligent connected new energy vehicles and electronic products.
The huge potential contained in these markets has already received widespread attention.
China's new energy vehicle production and sales account for more than 60% of the world's total, and major domestic and foreign car companies are vying to enter the market.
According to data from the Shangpu Consulting Group, a business consulting organization, the global electronic products and accessories market will reach US$560 billion in 2023, with China's market accounting for more than 45%.
Ma Yan, vice chairman of the presidium of the China Household Electrical Appliances Service and Repair Association, pointed out that replacing old consumer goods with new ones is a practical need to promote consumption and stimulate investment.
He analyzed that intelligent connected new energy vehicles and electronic products are important areas of current technological innovation and industrial upgrading. Promoting the replacement of old consumer goods with new ones will drive the growth of their consumption and improve the overall consumption level and quality.
From an investment perspective, consumption growth in these areas will stimulate investment enthusiasm in related industries, attract more capital to enter, and promote overall social investment growth.
On March 5, the second session of the 14th National People's Congress opened in the Great Hall of the People in Beijing.
The picture shows the opening ceremony played on an outdoor large screen in Beijing.
Photo by China News Service reporter Zhao Wenyu
Second, government investment focuses on new driving forces.
Actively expand effective investment. This year’s government work report calls for giving full play to the amplification effect of government investment, focusing on supporting technological innovation, new infrastructure, energy conservation and emission reduction.
Wen Bin, chief economist of China Minsheng Bank, pointed out that the above investment areas reflect the current market development trends and prospects.
Supporting its development means that the investment field will be more precise, which will help produce better investment-driven effects in the short and medium-term.
"Government investment is the key to expanding domestic demand," Zhang Liqun, a researcher at the Development Research Center of the State Council, pointed out. Different from the "profit-seeking nature" of market investment, government investment has a stronger public goods supply attribute.
Giving full play to the amplification effect of government investment can more effectively increase corporate orders, drive corporate production investment, employment and household consumption.
The government work report also made corresponding funding arrangements.
For example, this year’s central budget investment is planned to be 700 billion yuan (RMB, the same below), an increase of 20 billion yuan over the previous year.
Reasonably expand the investment areas and capital use scope of local government special bonds.
In addition, starting from this year, it is planned to issue ultra-long-term special treasury bonds for several consecutive years, specifically for the implementation of major national strategies and the construction of security capabilities in key areas. This year, 1 trillion yuan will be issued first.
Third, a new mechanism for cooperation between government and social capital.
The government work report proposed that efforts should be made to stabilize and expand private investment, implement and improve support policies, implement a new mechanism for cooperation between government and social capital, and encourage private capital to participate in the construction of major projects.
Zong Liang, chief researcher of the Bank of China, said that at present, it is necessary to stabilize private investment expectations and protect their legitimate rights and interests.
He expects that the new cooperation mechanism will better protect the "human, financial and property" of private capital, ensure market access opportunities for private capital in multiple fields, promote the formation of a good business environment, and allow private investment to come in, develop and be successful. as.
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