China will adopt follow-up policies on top of the policy package for stabilizing the economy as part of intensified efforts to consolidate the foundation of economic recovery and growth, and send taskforces to localities to supervise and assist work on this front to promote policy implementation at a faster pace, according to the decision made at the State Council’s Executive Meeting chaired by Premier Li Keqiang on Wednesday.
The meeting noted that the economy at the moment has continued the momentum of recovery and growth registered in June, yet marginal fluctuations still remain, and the foundation of economic recovery is not solid.
It’s imperative to fully apply the new development philosophy, coordinate COVID-19 response with economic and social development with high efficiency, uphold development as the basis of and key to solving all problems in China, and seize the current critical moment.
Swift and decisive steps will be taken, the appropriate policy scale maintained, and the policy instruments at disposal in the toolkit better harnessed, to further strengthen the foundation of economic recovery and growth, without resorting to massive stimulus or compromising longer-term interests.
On top of delivering the policy package for stabilizing the economy, an additional 19 follow-up policies will be rolled out to shape greater synergy. The goal of such policy mix is to promote economic stabilization and upturn, keep major economic indicators within the proper range and work for the best results possible.
“Given the current circumstances, we must seize the window of opportunity and maintain the appropriate policy scale. The funds available should be put to best use. This will expand effective investment, boost consumption and help keep economic activities on a steady course,” Li said.
On the basis of channeling the 300 billion yuan (US$43.87 billion) of the policy-backed and development-oriented financial instruments to specific projects, quota of such instruments will be increased by 300-plus billion yuan.
The balance of the special-purpose bond quota worth over 500 billion yuan should be well utilized pursuant to law and issued by the end of October. This will help boost effective investment, spur consumption and address the problem of insufficient loan demand.
The effect of the loan prime rate reform will continue to be harnessed, to lower the costs of corporate financing and consumer loans.
A set of infrastructure projects with mature conditions will be approved and launched. The projects should generate returns and have good quality. Embezzlement of the funds will be guarded against.
Measures will be introduced to support the development and investment of private businesses and advance the sound and sustained development of the platform economy.
Local governments will be allowed to adopt city-specific policies, including flexible credit loans to meet people’s basic housing needs and the need for improved housing conditions. The border entry and exit of business personnel will be facilitated.
Payments of government-levied charges will be deferred for one quarter. Localities will be encouraged to set up risk compensation funds for loans extended to micro, small and medium-sized enterprises and self-employed households.
Measures will be taken to support electricity producers under central administration by issuing 200 billion yuan of special bonds for energy supply. On top of the agricultural supplies subsidies delivered this year totaling 30 billion yuan, an additional 10 billion yuan will be distributed. Sustained efforts will be made to keep logistics open and smooth.
“We should expedite the delivery of policy measures. The central government will provide facilitation, and sub-national authorities be tasked with policy implementation,” Li said.
Departments concerned should promptly roll out detailed implementation plans by the end of September, and localities should introduce support measures.
The State Council will dispatch taskforces without delay to supervise and assist the work for stabilizing overall economic performance. These teams, led by leading officials of bodies under the State Council, will work jointly in several provincial-level regions with a fairly large economic size.
Methods in line with reform of government functions will be adopted to enhance the efficiency of review and approval. Responsibilities of localities will be earnestly enforced to enable swift delivery of the aforementioned policies.
Efforts made by local governments to stabilize the economy will be incorporated into the supervision and services under the State Council’s accountability inspections, according to the meeting.