More efforts urged to ensure economy operates within appropriate range
A State Council executive meeting chaired by Premier Li Keqiang on Monday required effective policy implementation and the strengthening of cross-cyclical adjustments in light of the new situations in economic operation, to ensure the Chinese economy operates 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 reported 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," 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 local governments 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.
"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," Li said.
"Appropriate arrangements will be made to help the disaster-stricken populations and fully meet their basic living needs, and efforts will be made in advance to keep people in the north safe and warm throughout the winter," he added.
Job security will remain a high priority. The government will facilitate market-oriented job creation by the nonpublic sector and enhance employment assistance and services for key groups such as college students, migrant workers and people in difficulty.
"Last year's experience shows that sustaining fairly sufficient employment helps generate wealth, keeps the market vibrant and maintains social stability. We must continue to put employment high on our agenda and see that all assistance and support policies are fully delivered," Li said.
Dedicated efforts will be made to help market entities overcome difficulties, according to the meeting. The government must fully implement 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 by the required reserve ratio cuts in order to strengthen financial services for smaller businesses, the meeting decided.
"Micro, small and medium-sized enterprises, especially those in the services sector, still face serious difficulties," 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."
Response plans on 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.
The steady recovery of consumption will be promoted, while local government special bonds will be well harnessed to spur greater effective investment, and more effective opening-up steps will be taken to keep foreign trade and investment stable.