China News Service, Beijing, May 23 Question: (Observation of the two sessions) China's "combined boxing" to expand domestic demand
Author Wang Qingkai
Facing the decline of economic growth, boosting consumption has become a necessary choice for China to stabilize its basic growth. The Chinese government's work report released on the 22nd proposed the implementation of a strategy to expand domestic demand and hit a series of "combination punches."
Boost consumption
According to data from the National Bureau of Statistics of China, retail sales in the first quarter fell by nearly 20% compared with the same period last year, the largest decline among various indicators. The absolute decline in consumption has led to a decline in corporate orders, which in turn affects the process of resuming production and production, and has become a challenge for economic recovery.
To boost consumption, we should first bring consumption back to the previous level. Therefore, the government work report proposes to increase employment income and protect people's livelihood through stable employment, and increase residents' willingness and ability to consume. Support the restoration and development of life service industries such as catering, shopping malls, culture, tourism, and housekeeping, and promote online and offline integration. Support e-commerce and express delivery into rural areas and expand rural consumption. Take multiple measures to expand consumption and adapt to the diverse needs of the people.
Hubei, the hardest hit by the epidemic, is also one of the provinces with the largest decline in consumption. In particular, the report pointed out that it is necessary to implement a package of policies to support the development of Hubei, support job security, people's livelihood, and operation, and promote the comprehensive restoration of economic and social order.
A series of measures all point to one goal: to promote consumption to return to its previous level as soon as possible.
Expand effective investment
Expanding investment is also one of the most effective ways to expand domestic demand. The report proposes to arrange 3.75 trillion yuan (RMB, the same below) for local government special bonds, increase the proportion of special bonds that can be used for project capital, and invest 600 billion yuan in the central budget.
It is worth noting that compared with the previous expansion of investment, this report particularly emphasizes the word "effective". Focus on supporting the "two new and one heavy" construction that not only promotes consumer benefits for people's livelihood but also adjusts structural growth. That is to strengthen the construction of new infrastructure and develop a new generation of information network. Strengthen the construction of major projects such as transportation and water conservancy.
These "effective" investments are in line with the direction of the high-quality transformation and development of China's economy, and are a tangible response to the current pain points of people's livelihood. The report also specifically pointed out that projects should be optimized without leaving any sequelae, so that the investment can continue to show benefits.
Combining regional strategies
The “combined boxing” of expanding domestic demand as reported in the report will also be combined with accelerating the implementation of regional development strategies and promoting the transformation of economic development methods.
The report proposes to continue to promote development strategies such as the Western Development and the Northeast Comprehensive Revitalization, and further promote regional development strategies such as the coordinated development of Beijing, Tianjin and Hebei, and the construction of the Guangdong-Hong Kong-Macao Greater Bay Area.
Earlier, the CPC Central Committee and the State Council issued the "Guiding Opinions on Promoting the New Development of the Western Region in the New Era and Forming a New Pattern." China has great potential for domestic demand, especially in the central and western regions, where there is a vast domestic demand consumer market, which is the most important part of China's economic strategy. At present, strengthening measures to promote the development of the western region to form a new pattern is a major decision made by China in coordinating the domestic and international overall situation. (Finish)