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Policies and measures pay off in the first three quarters

Updated: Oct 30,2015 2:31 PM

In 2015, the central government carried out a series of policies and measures to improve the economy amid complex domestic and international economic conditions. These efforts paid off as the economy is growing and restructuring in a stable manner.

Despite downward economic pressure, gross domestic product grew at 6.9 percent year on year in the first three quarters, indicating that the world’s second-largest economy is still in a good shape. The credit goes to macro-economic policies and economic reforms.

The central government keeps implementing proactive fiscal and monetary policies which expand government spending, liquidize remnant fiscal assets, reduce taxes, and cut interest rates and reserve requirement ratio.

From January to September, national public budget increased 16.4 percent, 2.7 percent higher than the same period last year. Broad money (M2) saw a 13.1 percent growth at the end of September.

Except those that are enduring excess capacity, minimum registered capital ratio in industries was lowered 5 to 10 percent, boosting investment potential.

Domestic demand has also developed as total retail sales of consumer goods witnessed a rebound in six consecutive months and tourism market developed in a prosperous manner. Communication equipment and online retail kept a growth rate of more than 30 percent.

Aimed at improving exports, efforts have been made in building new free trade pilot zones and promoting service trade and cross-border e-commerce.

Reforms in key areas such as administrative approval, finance, tax, state-owned enterprises, free trade pilot zone, foreign investment approval, and Belt and Road Initiative stimulate the market.

In the first three quarters, 10.65 million enterprises were registered with a 15.8 percent increase year on year, which means 11,600 newly registered enterprises per day.

According to estimates, tax reduction in 2015 will amount to 400 billion yuan ($62.92 billion). Since the end of last year, 236 national-level Public-Private-Partnership demonstrative projects have been established, amounting to 740 billion yuan. The central government also set up a 180 billion yuan fund to offer financing support for PPP projects.

The newly revised catalogue for the guidance of industries for foreign investment opened half of the areas which were previously prohibited from foreign investment. Highway, natural gas pipeline, and railway projects in countries along the Belt and Road are also making progress.

As the economic structure is changing and upgrading, the tertiary industry grew 8.4 percent in the first three quarters, accounting for 51.4 percent of GDP. High-tech manufacturing industry increased 10.4 percent, 4.1 percent higher than industrial growth rate.

Job market remains stable as 10.66 million jobs were created in the first three quarters. People’s lives have also improved as residents’ per capita disposable income increased 7.7 percent in the first three quarters and the minimum basic pension rose to 70 yuan per month each person while the insurance expenses were lowered. In the first three quarters, 1.11 trillion yuan was invested in government-subsidized housing projects, improved living conditions of hundreds of thousands of low-income families.

The central government has also made efforts in controlling risks in stock market and local government debt, preventing hazards from deteriorating into systematic risks.