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China strengthens well-focused cross-cyclical adjustments to keep major economic indicators within range

Wang Keju
Updated: Aug 16,2021 08:42 PM

The State Council’s executive meeting chaired by Premier Li Keqiang on Aug 16 required effective policy implementation and strengthening of cross-cyclical adjustments in light of the new situations in economic operation, to keep major economic indicators within an appropriate range.

Since mid- to late July, extreme weather and the consequent severe flooding have hit multiple areas of the country, and new COVID-19 cases have been identified in several provinces. Commodity prices have been hovering at a high level, and the international economic situation is intricate and complex.

"The recent new uncertainties should be duly noted, such as sporadic COVID-19 cases in multiple places, extreme weather calamities, and shifting world expectations on the economic front," Premier Li said. "Judging from the current situation, the underlying economic trend has not changed. We remain confident that we are able to keep up the momentum and undertake effective cross-cyclical adjustments."

Continued solid efforts are required for COVID-19 containment, flood control, disaster relief, and post-disaster recovery and reconstruction. All regions must strictly fulfill their responsibilities and rigorously implement all measures needed in COVID-19 preparedness and response.

Early warning and emergency response to floods and other disasters will be intensified. Greater support will be provided to accelerate recovery and reconstruction in disaster-stricken areas. Faster progress will be made in replanting or shifting to other crops, restoring farmlands and facilities damaged by the flood, and improving urban flood control and drainage facilities.

"The regular epidemic response mechanism will be improved, to guard against infections in key links in particular. In the meantime, disaster relief and post-disaster reconstruction should be accelerated. Appropriate arrangements will be made to help the disaster-stricken populations and fully meet their basic living needs. Efforts will be made in advance to keep people in the north safe and warm throughout the winter," Premier Li said.

Job security will remain a high priority. The government will facilitate market-oriented job creation by the non-public sector, and enhance employment assistance and services for key populations such as college students, migrant workers and people in difficulty, to help ensure people’s income and livelihood through stable employment.

"Last year’s experience shows that sustaining fairly sufficient employment helps generate wealth, keep the market vibrant and maintain social stability. We must continue to put employment high on our agenda and see that all assistance and support policies are fully delivered," Premier Li said.

Dedicated efforts will be made to help market entities overcome difficulties. The government must fully deliver the tax and fee cuts already introduced and curb arbitrary charges. Guidance will be provided to financial institutions for effective use of the capital freed up from the required reserve ratio cuts to strengthen financial services for smaller businesses.

"Micro, small and medium-sized firms, especially those in the services sector, are still faced with serious difficulties," Premier Li said. "Tax and fee cuts introduced earlier this year must be fully delivered, and financial support provided on an ongoing basis. Supporting market entities is to secure employment."

Market supply and prices will be kept stable. Response plans for price rises in raw materials will be improved and implemented. Domestic production will be scaled up to an appropriate level, reserves will be distributed in a well-calibrated manner, and regulation of key commodity markets will be better coordinated. The mechanism to secure the provision of daily necessities will continue to be implemented to ensure sufficient market supply.

All regions and government departments are required to follow closely the changes and trends in economic development and optimize their policy mix. The steady recovery of consumption will be promoted. Local government special bonds will be harnessed to spur greater effective investment. More effective opening-up steps will be taken to keep foreign trade and investment stable. Policy coordination and communication will be enhanced to shore up the confidence of market entities and maintain steady economic performance.