Nation to prioritize economic stability

Freight trucks drives on an overpass in Liuzhou, Guangxi Zhuang autonomous region, May 11, 2022. (Photo/Xinhua)

China will adopt fiscal and monetary policies prioritizing job creation, as part of efforts to maintain the overall stability of economic performance, according to a decision made at the State Council's Executive Meeting chaired by Premier Li Keqiang on Wednesday.

"The greater-than-expected impacts from the new round of COVID resurgence and shifting dynamics in the international environment have added new downward pressure to the economy in April. It is imperative to stay confident, face difficulties and challenges squarely, and keep overall economic performance stable, to lay the foundation for coordinated progress on all fronts," Li said.

The meeting stressed that fiscal and monetary policies should be employment-oriented. Tax refunds and breaks, deferred payment of social insurance premiums, reductions in financing costs and other measures should all focus on maintaining the stability of market entities, payrolls and employment, to ensure people's basic livelihoods, stabilize growth and drive consumption.

It is necessary to further use a variety of policy tools to mobilize local authorities' enthusiasm and ensure their responsibilities are well fulfilled, in order to effectively stabilize employment.

"We must attach high importance to the work of stabilizing employment. Various supportive policies should be effectively and speedily implemented to encourage and help enterprises keep their payrolls stable. Local governments must fulfill their responsibilities of supporting market entities and stabilizing jobs. Pro-employment policies should be intensified with extended coverage," Li said.

The meeting called for efforts to maintain price stability. China has a sufficient supply of essential livelihood products. That said, work in this regard should not be taken lightly. Solid efforts are needed on grain production to ensure stable grain output and supply and strengthen the foundations of price stability.

While ensuring effective COVID response, further efforts will be made to ensure unimpeded logistics, especially in key areas, and safeguard the stability of industrial and supply chains. The normal supply of energy will be guaranteed.

Measures to expand the coverage and extend the time frame of the policy for deferred payments of old-age insurance premiums will be promptly explored. Localities will be guided to subsidize the utility bills of micro, small and medium-sized enterprises and self-employed households.

"Prices are the most sensitive indication and also the most important lever of the market. We must attach great importance to price stability, food and energy security, and the stability of industrial and supply chains," Li said.

The meeting also decided to better mobilize existing assets, broaden the channels for private investment and expand effective investment.

The mobilization of existing assets through setting up real estate investment trusts and other means will be encouraged. Localities will be guided to introduce projects to attract investment, and all types of investors will be treated equally.

The market-based operation mechanism will be improved to raise the returns of the projects. New projects invested by recovered funds will be given access to funding from special-purpose bonds. The principle of market-orientation and law-based operation will be upheld, and transaction prices will be set openly and transparently.