BEIJING, July 21,
2024 /PRNewswire/ -- China's economy is on track for stable growth,
with strong policies and reforms needed for a sustainable economic
recovery, a Chinese official said following a key meeting to draw
up the next blueprint for China's
economy.
Han Wenxiu, executive deputy director of the Office of the
Central Committee for Financial and Economic Affairs, made the
remarks at a press conference on Friday, providing an overview on
the guiding principles from the third plenary session of the 20th
Communist Party of China (CPC)
Central Committee.
Analysts believe that reform measures adopted during the plenum
will provide a boost to China's
economic growth and instill confidence in the market. They
anticipate that policy measures aimed at stimulating domestic
demand and promoting the development of new quality productive
forces will be implemented.
China's economy is currently
showing signs of stable and healthy development, with key
macroeconomic indicators meeting market expectations. However,
there are still challenges such as insufficient effective demand,
difficulties in business operations for some companies, and
financial challenges for certain pockets of the country, which
required targeted policy effort and reforms, Han said.
The remarks came after the plenum emphasized the unwavering
commitment to achieving the 2024 social-economic development goals
and responded to questions of a "temperature difference" between
China's booming macro data and
experiences of individual businesses and industries in the Chinese
economy.
During the press conference, Han highlighted the importance of
ensuring the stable and healthy growth of the real estate market,
promoting the rapid development of emerging and future industries,
boosting domestic demand and stabilizing employment, in boosting
the sustained growth of Chinese economy.
There is still considerable room for high-quality development in
China's real estate sector as
China's new urbanization advances.
Efforts will be made to ensure delivery of homes, eliminate modes
of excessive debt, high turnover, and high leverage, while better
meeting the needs of genuine homebuyers, Han said.
Efforts should also be made to cultivate and strengthen emerging
industries and establish investment mechanisms for emerging
industries, as highlighted by the third plenum, Han said.
Han also emphasized on expanding domestic demand, particularly
consumer spending, leveraging the advantages of China's large-scale market to boost
consumption and investment.
The Chinese government has expressed a willingness to
proactively boost domestic demand. We expect that efforts will be
made to put in place stimulus policies aimed at expanding domestic
demand, improve employment environment and maintain stable growth,
Darius Tang, associate director of
Corporates, Fitch Bohua, told the Global Times in a statement on
Friday.
New quality productive forces driven by artificial intelligence,
biomedicine, and advanced manufacturing will continue to facilitate
the successful transformation and upgrading of China's economic structure, Tang said.
Efforts will be made to build a unified national market,
including the development of a unified urban-rural construction
land market, a nationwide integrated technology and data market,
and a unified national electricity market, Han added
China will also make
institutional improvements to facilitate high-quality and full
employment, and enhance the development of the aged care
industry.
"We expect that China will
increase investment in the fields of education, healthcare and
pension that are directly linked to people's livelihoods and
well-being, boost consumer confidence and convert current excessive
household savings into new forms of consumption," Tang said.
The third plenum has adopted a resolution which puts forward
more than 300 important reform measures, all of which involve
reforms on the levels of systems, mechanisms, and institutions.
The third plenum has provided a boost and confidence for
China's modernization goals. The
emphasis on promoting market vitality and establishing a unified
national market, as well as prioritizing the well-being of the
people, will likely lead to new growth opportunities and measures
to promote the wellbeing of the people, He Weiwen, a senior fellow
from the Center for China and
Globalization, told the Global Times on Friday.
"The reforms outlined in the third plenum are both
forward-thinking and practical, and are expected to have a positive
impact on the economy in the second half of the year," He said.
China's GDP expanded 5 percent
to reach 61.68 trillion yuan
($8.49 trillion) in the first half of
2024, data from the National Bureau of Statistics showed,
demonstrating the resilience and innate strength of the world's
second-largest economy.
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SOURCE Global Times