Xinhua News Agency Reporter Yu Jiaxin, Xie Xiyao
Wang Yuxiao, LV ang
At the meeting of the Political Bureau of the CPC Central Committee held on April 29, it was pointed out that “we should spare no effort to expand domestic demand”, emphasizing “give play to the key role of effective investment” and “give play to the traction and driving role of consumption on the economic cycle”.
Paying close attention to infrastructure investment, actively expanding effective investment, expanding and strengthening the domestic market, cultivating more new consumption growth points, and making every effort to expand domestic demand will provide a stronger and lasting driving force for China’s economy to make progress while maintaining stability.
Domestic demand is the main force of steady growth
In the first quarter, China’s fixed asset investment exceeded 10 trillion yuan, a year-on-year increase of 9.3%, better than the 4.9% of last year; The total retail sales of social consumer goods reached 10.87 trillion yuan, a year-on-year increase of 3.3%; Final consumption expenditure drove GDP growth by 3.3 percentage points, with a contribution rate of about 70%. A series of data show that although the economic growth slowed down in the first quarter, the role of domestic demand as the “main engine” is still prominent.
Over the past decade or so, China’s dependence on foreign trade once reached 67%, and fell to about 30% in the first quarter of this year; At the same time, the contribution rate of domestic demand to China’s economic growth remained high, rising from 79.1% last year to 96.3% in the first quarter of this year, further enhancing its supporting role for China’s economy.
At present, unexpected factors such as repeated domestic epidemics and changeable international situation exceed expectations, and the investment and consumption indicators fluctuate: in March, the year-on-year growth rate of total retail sales of social consumer goods changed from positive to negative, the growth rate of fixed asset investment decreased significantly compared with the previous two months, and the pressure on investment and consumption was obvious.
In the face of new situations and challenges, if we want to stabilize the economy, we must expand domestic demand.
“One of the outstanding pressures we are facing is the contraction of demand. Only by expanding domestic demand and promoting the balance between supply and demand can we stabilize the macroeconomic market.” Zhang Liqun, researcher of the Macroeconomic Research Department of the development research center of the State Council, said.
Zhang Liqun pointed out that to expand domestic demand, we should give full play to the key role of investment, especially government led infrastructure investment, because it will bring more orders to enterprises and promote enterprise recruitment, which is conducive to stabilizing employment and increasing income. Through investment to promote active production and increase high-quality supply, it will eventually drive the sustainable growth of consumption.
Expanding domestic demand is also the strategic basis for building a new development pattern. The basis for unblocking the domestic economic cycle is that the domestic market reaches a certain scale, which requires the pulling effect of domestic demand. Especially in the face of the uncertainty of the external environment, based on the domestic market, we can better improve China’s position and competitiveness in the international cycle.
Mao Xuxin, chief economist of the National Institute of economic and social research, said that whether it is to invest heavily in infrastructure, build an efficient and modern transportation and logistics system, or create new growth points of consumption and constantly tap the consumption potential, it will provide support for China’s stable economic growth and coping with external challenges, as well as inject strength into stabilizing the global supply chain and boosting global market confidence.
Make a good investment and consumption portfolio
Expanding investment and comprehensively strengthening infrastructure construction have been placed in an important position.
From the central economic work conference at the end of last year to this year’s government work report, it is proposed to “carry out infrastructure investment moderately in advance”. The 11th meeting of the central financial and Economic Commission recently proposed to build a modern infrastructure system. This meeting of the Political Bureau of the CPC Central Committee proposed to comprehensively strengthen infrastructure construction… A series of signals of strengthening infrastructure investment continue to be released.
“At present, infrastructure construction plays a key role in driving the whole body. It can play a positive role in stabilizing the overall economic situation and stabilizing market expectations. In the long run, it is a strategic layout that lays a good foundation for the country’s medium and long-term development.” Dong Yu, executive vice president of China Development Planning Research Institute of Tsinghua University, said.
“I thought that due to the impact of the epidemic, the required certificates would be delayed. As a result, I could get the land and start work.” Chen Wei, a staff member of Shaanxi Airport Free Trade Industry Development Co., Ltd., had some accidents. This year, the airport new town of Xixian new area has been normalized and implemented the policy of “starting work immediately after taking the land” to help enterprises shorten the construction cycle.
Zhang Liqun pointed out that the meeting of the Political Bureau of the CPC Central Committee proposed to strengthen the guarantee of land, energy use and environmental impact assessment, which is to accelerate the improvement of various policies related to the implementation of infrastructure construction projects and ensure the implementation and commencement of major construction projects as soon as possible.
The construction of 102 major projects in the 14th five year plan is being accelerated. At present, more than 2600 projects have been decomposed and implemented in a stable and orderly manner. 71000 special debt projects have been reserved in various regions. The annual investment in water conservancy projects and projects can be about 800 billion yuan… A series of engineering projects contain huge development opportunities and business opportunities.
Authoritative departments pointed out that to actively expand effective investment is not to blindly spread stalls and projects, nor to engage in strong stimulation like “flood irrigation”, but to focus on key areas and weak links of economic and social development, and accurately and orderly implement a number of investment projects that are beneficial to both the present and the long term.
Consumption is related to ensuring and improving people’s livelihood. Affected by the epidemic, consumption growth is under great pressure. From 43 policies issued by 14 departments to help restore the development of the service industry, to 20 policies issued by the state office to promote consumption, playing a “combination fist” to promote consumption; From focusing on the implementation of the relief policies for catering, retail, tourism, civil aviation, highway, waterway and railway transportation and other special industries, to promoting the integration of online and offline consumption and cultivating “smart +” consumption… All aspects work together, give consideration to both distance and distance, and take comprehensive measures to release the consumption potential.
Despite the impact of the epidemic, the consumption potential is still great. The contracted area of the 5th China International Fair has reached more than 70% of the planned area of the exhibition area; The scale of the second consumer Expo will be larger; Under the integrated layout of domestic and foreign trade, foreign trade enterprises began to strategically expand the domestic market… The super large-scale market with more than 1.4 billion people and more than 400 million middle-income groups has always been the foundation for China’s economic development and resisting external risks.
Dredging “blocking” and maintaining “smoothness” is the key
Smooth economic circulation is the basic guarantee and necessary support for expanding domestic demand.
In view of the blocking points in the circulation field, this meeting of the Political Bureau of the CPC Central Committee stressed the need to adhere to the national game of chess, ensure smooth transportation and logistics, and ensure the normal operation of key industrial chains, supply chains, anti epidemic and supply guarantee enterprises and key infrastructure.
For Zheng Zhijie, head of Zhejiang Lishui United Yunda Express Co., Ltd., rising oil prices, slow express transportation and slow payment collection have caused enterprises to encounter a “difficult period”. Local Agricultural Bank of China