In a recent press conference, senior officials from the Chinese mainland outlined a series of new stimulus measures designed to bolster the economy and achieve the ambitious growth targets set for 2024.
Confidence in Achieving 2024 Growth Target
Officials expressed strong confidence in meeting the 2024 growth target of around 5 percent, supported by a robust rebound in the purchasing managers' index (PMI) for the manufacturing sector. The stock market has surged to record highs, and consumer spending saw a significant uptick during the National Day holiday, signaling improved market sentiment.
China's economy grew by 5 percent in the first half of the year, laying a solid foundation for the annual target. Despite some fluctuations in economic indicators during July and August, market institutions forecast a third-quarter growth rate of approximately 4.6 to 4.8 percent.
Investment Plans for Next Year to Be Released in Advance
The government announced that ultra-long special treasury bonds will continue to be issued in the coming year, with optimized investment areas to support major national strategies. Additionally, investment projects worth 200 billion yuan ($14.14 billion) slated for next year will be unveiled this year to help local governments accelerate preliminary work and construction.
A significant portion of these projects will focus on urban renewal, particularly the construction of pipelines for gas, water, sewage, and heating. This initiative is expected to generate an investment demand of around 4 trillion yuan over the next five years.
Head Start for Local Projects
This year, 3.12 trillion yuan of special-purpose bonds have been allocated for local government project construction, with 2.83 trillion yuan already issued by the end of September. Local governments are being urged to complete the issuance of the remaining 290 billion yuan before November to maximize the benefits of these bonds and ensure timely project implementation.
The National Development and Reform Commission and the Ministry of Finance are also exploring new measures to optimize the management of these bonds, ensuring that funded projects have a tangible impact.
Lifting Support for Domestic Consumption
The government is enhancing support for large-scale upgrades of various appliances and implementing programs that allow consumers to trade in old products for new ones. These initiatives aim to unleash demand potential while promoting energy conservation, carbon reduction, and a comprehensive green transition.
Detailed implementation guidelines for consumer goods trade-ins have been fully released, with funding allocated and policies launched. As a result, passenger car retail sales have significantly rebounded, and home appliance sales have transitioned from decline to growth. Continued efforts will focus on driving sustained increases in commodity consumption.
Unlawful Enforcement on Businesses is a No
Administrative authorities are committed to adopting more inclusive, prudent, and flexible approaches in their interactions with businesses. The government aims to avoid unlawful cross-regional enforcement, profit-driven actions, arbitrary fines, excessive inspections, and unjustified seizures. Regions experiencing abnormal growth in forfeiture income will be monitored closely, and inspections will be conducted if necessary to ensure fair treatment of businesses.
Reference(s):
cgtn.com
