Recovery: Need for deepening reform, opening-up stressed

China will step up macroeconomic policy support in the second half of the year to further boost the nation's economic recovery, focusing on expanding domestic demand, enhancing confidence and preventing risks, according to a Party leadership meeting on Monday.

The meeting of the Political Bureau of the Communist Party of China Central Committee, presided over by Xi Jinping, general secretary of the CPC Central Committee, analyzed the current economic situation and made arrangements for economic work in the second half of the year.

China's economy is facing new challenges, mainly arising from insufficient domestic demand, difficulties confronting some enterprises, risks and hidden dangers in key areas, as well as a grim and complex external environment, said a statement issued following the meeting.

However, it noted that the nation's economy has enormous resilience and potential, and the positive fundamentals for long-term development remain unchanged.

It is necessary to stick to a proactive fiscal policy and a prudent monetary policy, step up the implementation of tax and fee reduction, and give full play to the role of quantitative and structural monetary tools to support scientific and technological innovation, the real economy and the development of micro, small and medium-sized enterprises, the meeting's participants said.

They emphasized that the exchange rate of the renminbi shall be kept generally stable at an appropriate and balanced level, and efforts should be made to invigorate the capital market and boost investors' confidence.

While calling for unleashing the fundamental role of consumption in driving economic growth, they said that consumption should be stimulated in major sectors, such as automobiles, electronic products and household goods, and service consumption in sports, entertainment, culture and tourism should be promoted.

The role of government investment should be better utilized, and the issuance and utilization of local government special bonds should be accelerated, the meeting decided.

The meeting's participants also underlined the need to map out policies and measures to promote private investment, and to take more measures to stabilize the fundamentals of international trade and foreign investment.

International flights should be increased, and stable and smooth operation of China-Europe freight trains should be ensured, they said.

They pointed out that it is necessary to vigorously promote the construction of a modern industrial system, accelerate the cultivation and development of strategic emerging industries, and create more pillar industries.

The deep integration of the digital economy with advanced manufacturing and modern services should be promoted, and the secure development of artificial intelligence should be facilitated, they said, adding that the healthy and sustained development of the internet-based platform economy should be promoted.

The meeting also emphasized the need to continue to deepen reform and opening-up, improve the core competitiveness of State-owned enterprises, and optimize the environment for the development of private enterprises.

It is necessary to effectively prevent and resolve risks in key areas, and adjust and optimize policies for the real estate sector at an appropriate time to promote the stable and healthy growth of the real estate market, said the meeting's participants.

They urged effectively preventing and resolving local government debt risks, and formulating and implementing a package of debt-reduction measures. Financial supervision should be strengthened, they said.

In terms of people's livelihoods, the meeting emphasized promoting employment and greater efforts to expand the middle-income group.

Achievements made in poverty reduction should be consolidated and expanded, and the rural revitalization strategy should be comprehensively advanced, the meeting decided.

To do the economic work well in the second half of the year, the CPC Central Committee held a symposium with non-CPC personages on Friday to seek their opinions and suggestions. Xi presided over the symposium and delivered an important speech. He called for solid efforts to promote sustained and positive economic recovery and strive to achieve the development goals for the whole year.