Xi chairs CPC leadership meeting to analyze economic situation, arrange for economic work

The Political Bureau of Communist Party of China (CPC) Central Committee held a meeting on September 26 to analyze and discuss the current economic situation and make plans for future economic work. Xi Jinping, general secretary of the CPC Central Committee, presided over the meeting. It was noted at the meeting that since the beginning of this year, the CPC Central Committee with Xi at its core has led the people of all ethnic groups in tackling difficulties and challenges calmly, intensifying macroeconomic regulation, focusing on deepening reform and opening up, expanding domestic demand, and optimizing economic structure. As a result, the overall economic operation has been generally stable, with progress being made and overall situation stable. New quality productive forces have been steadily advanced, solid work done to secure people’s livelihood, efforts made in preventing and defusing risks in key areas, high-quality development solidly promoted, and overall social stability maintained.

It was pointed out at the meeting that the fundamentals and favorable conditions of China’s economy, such as a broad market, strong economic resilience, and great potential, remain unchanged. At the same time, there are some new developments and problems in the current economic performance. It is imperative to calmly and objectively look at the current economic situation in an overall perspective, face up to difficulties, have greater confidence, and strengthen our sense of responsibility and urgency in doing a good job in economic work. It is also imperative to focus efforts on key areas, take a proactive approach, effectively implement existing policies, intensify the introduction of new policies, make policy measures even more targeted and effective, and strive to fulfill the annual economic and social development goals and tasks.

The need was emphasized at the meeting to increase the intensity of countercyclical adjustments in fiscal and monetary policies, ensuring necessary fiscal expenditures, and do solid work to make sure that people’s basic living needs are met, salaries are paid, and governments function smoothly at the primary level. It is necessary to issue and put to good use ultra long-term special treasury bonds and special local government bonds, and better leverage government investment to drive development. The reserve requirement ratio should be lowered, and so should interest rates in a powerful manner. Efforts should be made to reverse the downturn of and stabilize the real estate market, strictly control the increase of new commodity housing projects, optimize the existing stock, and improve the quality. Greater efforts should be made to provide loans for projects on the “white list” and support the efforts to make good use of idle land resources.

The need was also stressed at the meeting to respond to public concerns by adjusting policies restricting housing purchases, lowering interest rates on existing housing loans, and promptly improving policies related to land, fiscal and tax matters, and finance to promote the establishment of a new model for real estate development. Efforts should be made to boost the capital market, vigorously guide medium- and long-term funds into the stock market, and clear the hurdles for funds from social insurance, insurance, and wealth management into the stock market as well. Mergers and restructuring of listed companies should be supported, and reform of publicly-offered funds should be steadily advanced. Policies should be studied and introduced to protect the interests of small and medium investors.

Furthermore, the need was noted at the meeting to assist enterprises in overcoming difficulties and to further regularize the way laws are enforced and supervision conducted over enterprises. It is essential to formulate a private sector promotion law to foster a favorable environment for the development of the non-public sector. It is imperative to integrate the efforts to boost consumption and improve people’s wellbeing, enable the low- and middle-income groups to earn more and optimize the consumption structure. New forms of business for consumption should be cultivated. It is essential to support and regulate private entities’ involvement in the development of elderly care and childcare industries, and speed up refining the policies for boosting birth rate. Efforts should be intensified to attract and secure investment, speed up reform measures such as allowing foreign investment access to the manufacturing sector, and further optimize a world-class business environment that is market-oriented, law-based and internationalized.

It was stressed at the meeting that people’s basic living needs must be met. Priority should be given to the employment for fresh college graduates, migrant workers, those lifted out of poverty, and zero-employment families. Aid should be strengthened for employment-challenged groups such as the elderly, persons with disabilities, and those who have been unemployed for a long time. It was also emphasized that the assistance should be strengthened for low-income earners. Efforts should be made to ensure the adequate supplies and stabilize the prices of essential goods such as food, water, electricity, gas, and heating. Moreover, it is important to effectively promote agricultural production, show enough concern for increasing the income of rural residents, do a good job in agricultural work in autumn and winter, and thus safeguard national food security.

All regions and departments were required to earnestly implement the CPC Central Committee’s decisions and arrangements, get down to work, unite as one, and stimulate as much as possible the whole society’s enthusiasm, initiative, and creativity in advancing high-quality development so as to promote sound and steady economic growth, according to the meeting. CPC members and officials were urged to take on responsibility and pursue innovation, and hone their capabilities and make achievement through overcoming difficulties and challenges. It is essential to set right benchmarks for selection and appointment of officials, and apply “three distinctions” to throw weight behind those who proactively take on responsibilities and those who do their work earnestly. It is also imperative to support economic powerhouse provinces to play leading and pillar roles in propelling the country’s economic development.

Other matters were also discussed at the meeting.

Note: “The three distinctions” refers to those between errors caused by lack of experience in pilot reforms and deliberate violations of discipline and law; between errors made in conducting experiments that are not explicitly restricted by higher-level authorities and arbitrary violations of discipline and law in the face of higher-level authorities’ explicit prohibition; and between unwitting errors made in pursuing development and violations of discipline and law for personal gains.