The National Development and Reform Commission and 11 other central departments on Feb 18 released a policy document to promote steady growth in the industrial sector, reiterating the goal of stabilizing the overall economy.

Facing multiple pressures from shrinking demand, supply shock and weakening expectations, the country outlined 18 measures to consolidate industrial recovery, including reducing the social insurance contribution for enterprises, ensuring stable supplies and prices of key raw materials, stepping up new infrastructure construction, attracting foreign investors to advanced manufacturing and revising the catalog of industries in which foreign investment is encouraged.

Another document released on Feb 18 by the NDRC and 13 other central departments supported the development of hard-hit service sectors.

Zhao Chenxin, secretary-general of the National Development and Reform Commission, said the NDRC will make a big push to implement the new policies, with a key focus on increasing support for market entities and expanding effective investment. The NDRC will work to stabilize the production and operation of large enterprises, reduce the burden on small and medium-sized enterprises, spur the vitality of high-tech firms, stabilize the external market demand for traditional industries, speed up the implementation of key projects and create a better environment for investment.

In a signed article published in People's Daily on Feb 18, China's finance minister Liu Kun noted that this year China will cut tax rates more forcefully and make fiscal spending more targeted.

He said that the key for more targeted special spending is to shed more light on the high-quality growth of the manufacturing sector; on tackling difficulties for medium, small and micro businesses; and on technological innovation.

Liu said that only invigorated market entities will be able to drive forceful growth. He confirmed in the article that tax and fee cuts will be intensified this year to further invigorate the market, and the previous tax and fee cuts of a sizable scale must be fully delivered.

"While China's economic growth may slow significantly in the first quarter this year due to the high base of 2021, the fundamentals of China's long-term sound economic growth have not changed," said Li Quan, chief economist of LC Securities." We need to step up macroeconomic policy support, relying on a proactive, efficient and stable fiscal policy and implementing a prudent monetary policy, to promote the economic recovery amid the impact of COVID-19."

Luo Zhiheng, chief economist at Yuekai Securities, said he expected the government to take further steps to shore up growth such as the reduction in the reserve requirement ratio.

He said the government needs to continue to implement tax cuts and fee reductions, ease the pressure on rising costs for enterprises, ensure power supply, spur consumption and expand effective investment in fields such as major projects and new infrastructure.

"For 2022 as a whole, we forecast GDP to expand 5 percent," said Tommy Wu, lead economist at Oxford Economics." We expect corporate and infrastructure investment will be key growth drivers this year ... We have recently lowered our world GDP growth forecast for this year as recovery remains volatile due to new COVID troubles affecting Q1 activity."