China’s annual Central Economic Work Conference opened in Beijing on Dec. 10 amid the domestic economic slowdown and global financial turmoil. Observers from both home and abroad placed high hope on the event, and they believed it would give priority to maintaining stable growth through effective macro-control.
Judged by the central macro economic control and domestic economic growth, China is confidence in achieving steady economic growth.
Domestic economic basis stays health, which is the foundation of maintaining stable economic growth.
The snow disaster early this year, devastating earthquake in May that rocked southwest China as well as the global economic meltdown that originated from the US have added misfortunes to China’s social and economic development.
However, domestic economy still keeps a good momentum of fast development. In the first three quarters this year, China saw 9.9 percent increase in national economy. The agriculture production scores consecutive bumper harvests for five years; urban fixed assets investment grows robustly; industrial production, commodity supply as well as price stay stable. Such favorable conditions can push domestic economy to grow further.
Central government should boost national economic development by adopting more flexible monetary policy and proactive fiscal measure.
Since September this year, central bank has repeatedly cut interest rates, reserve requirement, and come out with more favorable policies for the financing of SMEs and agricultural production, which have produced a marked effect so far.
The maximum credit that small enterprises are allowed totaled 1.9258 trillion yuan by the end of September this year, up by 8 percent or 144 billion yuan more than that in the early period this year. Meanwhile, National Development and Reform Commission (NDRC) and Ministry of Finance also issued a series of macro policies to enlarge investment, boost domestic demand as well as stimulate consumption.
Another 100 billion yuan will be invested in last quarter this year. And additionally, 4-trillion-yuan investment will be proved in the next two years to maintain the stable growth of national economy.
China will launch the reform on value-added tax, a move that could cut a 19-million-yuan burden for enterprises. State Council is considering the issuance of treasury bond under the framework of a proactive fiscal policy.
However, there are also some problems amid the development of national economy. As the export began to drop, China should attach more importance to investment and domestic demand in light of the fact that China has been relying heavily on foreign trade to boost economic growth. The Political Bureau of CPC Central Committee put forward the policy of "ensuring growth, boosting domestic demand and adjusting current structure”, which can serve as a guideline for economic development.
The measures to stimulate economic growth must be carried out in a rational way. Central government’s policy to enlarge domestic demand has drawn positive response in various regions across the country. Ten measures and 4-trillion-yuan investment are policies that heighten people’s morale and boost economic development.
Governments at various levels across the country also did their bit of making relevant policies to help develop economy. The scientific outlook on development can be used as a guiding principle while making policies on national economy.
Currently, the measures to stimulate economic growth are urgently needed. However requirements for proving the economic stimulus package, such as environment, future revenue, investment and so on must be taken into consideration as to avoid the perfunctorily work-style.
By People's Daily Online
|
Comment
Tell A Friend
Print Format
Save Article