Currently, the international economy faces numerous challenges, with an uncertain path to recovery. In this context, China has recently launched a package of incremental policies, akin to bringing light to a dim environment. These measures not only provide new growth drivers for the Chinese economy but also serve as a vital boost for the global economy. The policies effectively counter negative rhetoric regarding China’s and the world’s economic prospects, demonstrating the strong resilience and potential of the Chinese economy through concrete actions.
Recently, despite a complex and changing international environment, China’s economy has shown a stable and improving trend. Following the introduction of a series of monetary and financial policies on September 24, there has been significant attention on the next round of measures. On September 26, the Central Politburo convened a meeting to deploy the package of incremental policies, which garnered considerable interest. On October 8, the State Council Information Office held a press conference discussing the “systematic implementation of incremental policies to solidly promote economic growth and structural optimization.”
The package encompasses various sectors, including finance, consumption, investment, real estate, and the stock market, forming a synergistic policy effect. Measures such as tax reductions, increased fiscal spending, optimized financial environments, and encouragement of technological innovation have alleviated burdens on enterprises, boosted consumption, and safeguarded investments. For instance, significant tax cuts for the manufacturing sector and small businesses have provided substantial support to the real economy, creating a positive economic cycle.
In terms of consumption, policies aimed at stimulating consumer activity and increasing support for specific groups have effectively revitalized the consumption market. The strong performance of the Chinese consumption market during the National Day holiday serves as the best evidence. Preliminary statistics from the Ministry of Transport indicate that from October 1 to 7, approximately 2 billion cross-regional trips were made, with a daily year-on-year increase of 4.1%. According to the Ministry of Culture and Tourism, during the seven-day holiday, there were 765 million domestic trips, reflecting a year-on-year increase of 5.9%, and a 10.2% increase compared to the same period in 2019. Domestic tourists spent a total of 700.82 billion yuan, marking a year-on-year increase of 6.3%, and a 7.9% increase compared to 2019.
In the investment sector, measures to expand effective investment and optimize the implementation of significant policies have accelerated the formation of tangible workloads. This year, nearly 6 trillion yuan of government investment has largely been directed toward specific projects, promoting the creation of more tangible workloads. On the private investment front, the National Development and Reform Commission has introduced 1,635 major projects to private capital, attracting participation in 441 projects with a total investment of 344.8 billion yuan. The execution of these investment projects provides strong support for economic growth and creates numerous job opportunities, alleviating employment pressure.
Additionally, the package of incremental policies has further stabilized market expectations through measures that support the real estate market’s stabilization and boost the capital market. In real estate, systematic comprehensive measures have controlled new construction, optimized existing stock, and improved quality, effectively releasing rigid and improving housing demand. In the capital market, efforts to guide medium- and long-term funds into the market, address bottlenecks related to social security, insurance, and wealth management funds, support mergers and acquisitions of listed companies, and steadily promote public fund reforms have provided robust guarantees for the stable development of capital markets.
For the global community, China’s stable economic growth and expanding market present opportunities for win-win cooperation among countries. Previously, the Third Plenary Session of the 20th Central Committee of the Communist Party of China outlined plans to enhance the high-level opening-up system, proposing measures to steadily expand institutional openness and deepen foreign trade system reforms. China has also announced efforts to attract and stabilize foreign investment, further open up autonomously, introduce new major foreign-funded projects, and implement more open visa-free transit policies. This demonstrates that China is becoming increasingly open, optimizing its business environment, and enhancing the convenience of entry and exit, thereby creating favorable conditions for foreign enterprises operating in China.
In conclusion, the package of incremental policies launched by China not only robustly counters pessimistic views on the Chinese economy but also provides a strong boost to the world economy. These policies promote steady growth in China’s economy and offer significant support for global economic recovery. Moving forward, with the deepening implementation of these policies and the gradual emergence of their effects, it is believed that the Chinese economy will continue to maintain a stable growth trajectory, bringing more hope and opportunities to the world economy.
