On October 8, the first working day after the National Day holiday, the National Development and Reform Commission (NDRC) held a highly anticipated press conference at 10 AM. The theme focused on the “Systematic Implementation of a Comprehensive Incremental Policy Package to Steadily Propel Economic Growth, Optimize Structure, and Sustain Positive Development Trends.” Attendees and the public were eager to learn about the key measures aimed at ensuring this “systematic implementation,” as well as the specifics of the “comprehensive incremental policy package.” Questions loomed large about how China plans to effectively drive “economic growth, structural optimization, and sustained development,” particularly in light of its current economic operations.
A representative from the NDRC shared insights on the necessity to strengthen the implementation of this incremental policy package. According to them, given the increasingly complex domestic and international environments, China’s economy remains generally stable, with new productive forces emerging and high-quality development on the rise. To maintain this momentum, China is set to intensify the execution of its comprehensive policy measures.
Key focuses will include enhancing macroeconomic policies through increased counter-cyclical adjustments and expediting reforms that encourage sustainable economic growth. Promoting consumption remains a priority, especially through linking incentives to the improvement of livelihoods for low- and middle-income groups, as well as expanding services in sectors such as elderly care and childcare.
On the investment front, plans for issuing long-term special government bonds next year are underway, along with optimizing fund allocation. Additionally, a budget plan of 100 billion yuan aims to support two major construction projects, enabling local authorities to accelerate project initiation.
To tackle operational challenges faced by businesses, the government plans to boost support and improve the overall business environment. This includes efforts to stabilize the real estate market, enhance lending for prioritized projects, and mobilize idle land through special bonds. Measures will also be implemented to invigorate the capital market and protect small investors.
As the conversation evolved, several key questions emerged about the press conference:
1. Why was it crucial for the NDRC to hold this press conference now?
2. What specific measures are included in the comprehensive incremental policy package?
3. What important messages does this send about the future of high-quality economic development?
The timing of the press conference sparked discussion, particularly after the NDRC provided a preview on October 6 through its official channels. Qing Liyan, Deputy Director of the Economic Research Institute at the NDRC, emphasized the timing’s alignment with directives from key leadership meetings within the Communist Party and State Council. This underscores the need for coordinated policy implementation across various departments—an essential task for the NDRC as the leading agency responsible for economic oversight.
With just over 80 days left in 2023, maintaining economic momentum is vital. The first half of the year saw steady growth at 5%, and the fourth quarter typically has a significant impact on annual performance. The press conference aims to deliver immediate benefits to businesses and citizens, boosting confidence as the year closes.
Regarding the specifics of the comprehensive incremental policy package, the NDRC chairman highlighted several initiatives, including:
1. Intensifying counter-cyclical adjustments to enhance macroeconomic effectiveness.
2. Boosting domestic demand by linking promotional strategies with greater support for lower-income groups.
3. Increasing enterprise support through clearer regulations and future policy guidance.
4. Stabilizing the real estate market.
5. Revitalizing the capital market to attract medium- and long-term investments while ensuring protections for small investors.
The press conference’s timing reveals a commitment to ongoing macroeconomic policy support. Recent indicators suggest confidence in China’s economic prospects, supported by robust macroeconomic policies. The NDRC’s event serves as a clear signal of policy continuity, highlighting the coordination observed in recent meetings.
Experts note that while domestic economic pressures have intensified, especially in the fourth quarter, effective implementation of the policy package is crucial for maintaining confidence and achieving annual targets. The government aims to provide tailored support to businesses facing challenges while ensuring regulatory actions don’t impose undue burdens.
Ultimately, this multifaceted approach fosters not only market confidence and expectation stabilization but also seeks to enhance structural optimization and overall economic quality. The comprehensive strategy of the incremental policies focuses on balancing both immediate needs and long-term developmental goals, thereby addressing current challenges while laying a foundation for the future. This includes policies aimed at fostering effective investments and stimulating viable consumption, all contributing to a broader, greener transformation of the economy and society.
