Beijing: China’s economy, hit by the stringent zero-COVID policy, is currently passing through a “critical stage of stabilisation”, Premier Li Keqiang has said as he asked the provinces to tighten their belts and put existing assets to better use to consolidate the recovery.
Li’s call on Tuesday came as the world’s second-largest economy showed signs of stress due to periodic COVID lockdowns in top Chinese cities like Shanghai and Shenzhen as well as China’s travel restrictions limiting travel with the rest of the world to control the pandemic within the country.
The second-ranking leader of the ruling Communist Party of China (CPC) who is set to retire this year after a 10-year stint, presided over a symposium on the economic situation at Shenzhen, China’s top industrial city, in which leading officials of six major economic provinces — Guangdong, Jiangsu, Zhejiang, Shandong, Henan and Sichuan — took part via video link.
Li stressed efforts to shore up market entities, stabilise employment and prices, and guarantee people’s livelihoods.
Noting that China’s economy is in a critical stage of stabilisation, Li urged the adoption of a sense of urgency in the country’s endeavours to consolidate recovery momentum, according to an official press release.
The country should fully implement the new development philosophy and coordinate epidemic prevention and control with economic and social development in a highly efficient way, Li said.
The six provinces contribute 45 per cent of the country’s total economic output, Li noted, calling the provinces the pillars of the country’s economic development and urging them to take a key role in stabilising economic growth.
Li urged the economic powerhouses to ensure solid implementation of a package of pro-growth policies while leveraging policies to energise market entities, smooth logistics and stabilise industrial and supply chains.
The local governments should tighten their belts, put existing assets to better use, maintain a balance between revenue and expenditure, and guarantee fiscal spending in ensuring people’s livelihoods, he said.
Li called for efforts to ensure the stability of market entities in order to stabilise the economy and employment.
Noting that the six provinces boast over 40 per cent of China’s market entities, which offer more than 40 per cent of the country’s job opportunities, he stressed work to step up support for enterprises to tide over difficulties and resume vitality.
Measures should be taken to promote consumption in these provinces, each with a large population, Li said and called for boosting big-ticket consumption, including auto consumption, while improving the crisis-hit housing sector.
The premier also called for ramping up financial support for localities with more qualified projects through special local government debts and policy-based and developmental financial instruments. He urged localities to accelerate the construction of mature projects to increase effective investment and related consumption.
He said that the six provinces should continue their explorations on reform, deepen reforms to streamline administration and delegate power, and further stimulate market vitality and social creativity.
Li also urged the six provinces to promote opening-up at a higher level and stabilise foreign trade and investment to realise mutual benefits and win-win outcomes.
PTI