The Paper:

We have observed that, for some time, China's economy has maintained sound and steady growth according to macroeconomic data. However, there exists a certain "temperature difference" between macroeconomic data and microeconomic entities. In the process of further deepening reform comprehensively, what measures can be taken in macroeconomic policies and institutional reforms to bridge this "temperature difference" and achieve a virtuous economic circle? Thank you.

Mo Gaoyi: 

Let's invite Mr. Han to answer this question.

Han Wenxiu: 

China is currently achieving economic recovery and growth while making steady progress in pursuing high-quality development. Major macroeconomic indicators are staying in line with projected targets. However, challenges still exist, such as insufficient effective demand, operational difficulties for some businesses, and fiscal difficulties in certain regions. These challenges indicate that the economic recovery is not yet strong enough. There is also a divergence among different regions, industries and enterprises. Moving forward, it is essential to promote a sustained economic recovery and growth, achieving more balanced and inclusive development that is beneficial to all. Accomplishing these goals relies on strong policy support and effective reforms.

Macroeconomic policies need to be implemented more forcefully and effectively. A proactive fiscal policy should be better leveraged by speeding up the issuance and use of special bonds. This policy should also ensure timely and adequate expenditure at the primary level to guarantee that basic living needs are met, salaries are paid, and governments function smoothly. Furthermore, it is crucial to maximize the leveraging effect of fiscal funds on economic growth and structural adjustment. A prudent monetary policy should be flexible, appropriate, targeted and effective. It should maintain reasonable and adequate liquidity while actively developing technology finance, green finance, inclusive finance, pension finance, and digital finance. These measures will provide an endless source of strength to the real economy. Following the decisions and arrangements, we will implement large-scale equipment renewal and consumer goods trade-in programs. These programs will be supported through more financial investments and policy support. The goal is to provide tangible benefits to businesses and consumers. We will combine long-term growth potential with short-term stability in growth by leveraging ultra-long special treasury bonds. These bonds will be used to enhance major national strategies and build up security capacity in key areas. Both economic and non-economic policies should be evaluated for consistency in macro policy orientation. This approach will create a strong synergy for promoting high-quality development.

We will firmly promote reforms that can bring tangible benefits to individuals and enterprises. Reform and development should be for the people and by the people. The outcomes of reform and development should be shared among the people. According to the arrangements of the third plenary session of the 20th CPC Central Committee, we will work to provide inclusive public services, meet essential needs, and provide a cushion for those most in need. We will improve mechanisms regarding workers' wage determination, rational wage increases, and secure wage payments. Additionally, we will increase residents' property income through various channels, effectively raise the incomes of low-income groups, and steadily expand the middle-income population. These measures will boost the ability and willingness of residents to consume. We will improve the long-term mechanisms for expanding consumption. We will enhance mechanisms for promoting higher-quality and fuller employment while supporting and regulating the development of new employment forms. We will enhance systems and mechanisms to drive social investment through government investment, forming a market-oriented mechanism that boosts effective investment through endogenous growth capacity. We will improve the systems and mechanisms for promoting equal opportunities. We will ensure that economic entities under all forms of ownership have equal access to factors of production in accordance with the law, compete in the market on an equal footing, and are protected by the law as equals. These measures aim to promote social mobility and encourage people to achieve prosperity through hard work.

We believe that driven by effective policies and reforms, China's economy will become more robust, balanced and sustainable, continuously enhancing individuals and enterprises' sense of gain and benefits. Thank you!

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