Economy Boost: China Rolls Out Incremental Policies

The current economic situation and economic policies are receiving widespread attention. On October 8th, the State Council Information Office held a press conference where the head of the National Development and Reform Commission introduced the situation regarding "systematically implementing a package of incremental policies to solidly promote an upward economic structure, an optimized development trend, and a sustained positive development momentum."

A combination of policies from five aspects

Zheng Shanjie, the director of the National Development and Reform Commission, introduced that in response to new situations and problems in the current economic operation, the Party Central Committee and the State Council made scientific decisions and acted decisively. While effectively implementing existing policies, they focused on five aspects: increasing the counter-cyclical adjustment of macro policies, expanding domestic effective demand, increasing the intensity of enterprise assistance, promoting the stabilization of the real estate market, and boosting the capital market. They have introduced a package of incremental policies to promote the continuous recovery and improvement of the economy.

"We not only focus on solving the current difficulties and problems but also pay more attention to and prioritize solving major issues in the medium and long-term development of the economy, strengthening the foundation, benefiting the long term, being sustainable, and promoting high-quality development with steady progress," said Zheng Shanjie. Next, we will work with all departments and regions to fully implement and accelerate the implementation of the decisions and deployments of the Party Central Committee and the State Council. We will systematically implement a package of incremental policies, play a set of combination punches, unblock the bottlenecks and difficulties in policy implementation, and solidly promote the stable upward development of the economy, the continuous optimization of the structure, and the sustained positive development momentum.

Policies conducive to the production, operation, and healthy development of enterprises will not stop or be lacking

Zheng Shanjie introduced that in terms of increasing the intensity of enterprise assistance, it is necessary to further standardize the administrative law enforcement behavior of administrative law enforcement units involving enterprises, adopt more inclusive and prudent supervision and flexible law enforcement methods, and not violate regulations for异地 enforcement and profit-driven enforcement, nor arbitrarily impose fines, inspections, or seizures. At the same time, according to the inventory, some policies such as tax and fee support, unemployment insurance assistance for enterprise stability, and skill improvement subsidies will expire at the end of this year. Relevant departments will accelerate the clarification of whether the policies will continue to be implemented based on research and evaluation. If they continue to be implemented, the duration of the continuation will be clarified as soon as possible.

"Policies conducive to the production, operation, and healthy development of enterprises will not stop or be lacking," Zheng Shanjie said.

Next year, continue to issue ultra-long-term special treasury bonds and optimize investment direction

In terms of investment, the focus is on expanding effective investment and accelerating the formation of physical work volume.

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Economy Boost: China Rolls Out Incremental Policies

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The National Development and Reform Commission has sorted out and analyzed that there is a large demand for incremental funds in areas such as the construction of infrastructure, the urbanization of agricultural transfer population, the construction of high-standard farmland, the construction of underground pipelines, and urban renewal. Taking the construction and transformation of underground pipelines as an example, it is estimated that nearly 600,000 kilometers of various pipelines such as urban gas, water supply and drainage, and heating need to be transformed in the next 5 years, with a total investment demand of about 4 trillion yuan.Zheng Shanjie stated that next year, there will be a continuation of the issuance of ultra-long-term special government bonds and an optimization of their allocation to increase support for the construction of "two focuses." The National Development and Reform Commission (NDRC) will advance the allocation of 100 billion yuan in central budget investment plans and a list of 100 billion yuan for "two focuses" construction projects for the following year within this year, to support localities in accelerating the preliminary work and starting the implementation ahead of schedule.

Increase the momentum for the advancement of the 102 major projects in the "14th Five-Year Plan"

Liu Sushe, Deputy Director of the NDRC, introduced that among the 5,100 specific projects involved in the 102 major projects of the "14th Five-Year Plan," 92% have already started construction or have been completed. The next step will be to further strengthen the coordination to promote the commencement of the 409 projects that have not yet started construction, ensuring the successful conclusion of the 102 major projects in the "14th Five-Year Plan" by the end of next year.

He also mentioned the need to accelerate the improvement of a long-term mechanism for private enterprises to participate in major national construction projects, focusing on continuously promoting high-quality projects and encouraging more private capital to participate in major infrastructure projects such as railways, energy, and water conservancy. Efforts will be made to quickly screen and form a new list of national key private investment projects.

Accelerate the promotion of people-oriented new urbanization construction

In July this year, the "Five-Year Action Plan for the In-Depth Implementation of People-Oriented New Urbanization Strategy," issued by the State Council, was officially released. Zheng Bei, Deputy Director of the NDRC, stated that to accelerate the promotion of people-oriented new urbanization construction, a series of incremental policies will be focused on the deployment of the action plan, increasing policy support and implementation efforts.

Zheng Bei said that in implementing a new round of actions for the urbanization of the agricultural transfer population, the focus will be on removing the bottlenecks in the urbanization process of more than 170 million migrant workers and their accompanying family members. For the issue of difficulty in household registration in large cities, the emphasis will be on accelerating the relaxation of household registration conditions in cities with a permanent population of more than 3 million in urban areas, fully establishing public household registration in street communities, and improving the rental housing registration policy. In response to the most concerning issues for the agricultural transfer population, such as education and healthcare, the support from ultra-long-term special government bonds for projects such as the construction of ordinary high schools and the renovation of hospital wards in cities with a concentrated influx of population will be increased.

Strengthen the energy support for major projects laid out by the state

Energy support is an important aspect of supporting high-quality development. Zhao Chenxin, Deputy Director of the NDRC, introduced that efforts will be increased to implement a separate energy consumption listing for major national projects, studying the inclusion of a batch of major projects that conform to the national major productive force layout, enhance the resilience and security level of the industrial chain and supply chain, and support the development of new quality productive forces into the "14th Five-Year Plan" energy consumption separate listing range. The energy consumption of related projects will no longer be included in the energy-saving target responsibility evaluation and assessment category of the provincial government where the project is located, strengthening the energy support for major projects laid out by the state.

Four measures to promote employmentLi Chunlin, Deputy Director of the National Development and Reform Commission (NDRC), stated that the NDRC will vigorously implement an employment-first strategy, strengthen the coordination and cooperation of macro policies, guide the establishment of correct employment concepts, and adhere to promoting employment through development. Firstly, it will expand effective demand to create new employment growth points and increase support for projects that have a good employment absorption effect. Secondly, it will develop new quality productive forces according to local conditions, cultivate and strengthen strategic emerging industries and future industries, and create more knowledge and skill-based positions. Thirdly, it will innovate in the development of service consumption and fully release the employment potential in social service fields such as elderly care, domestic services, childcare, and logistics. Fourthly, it will leverage the role of vocational education and skill training in promoting employment.