China has pledged to make concerted efforts to help its economy overcome challenges at home and abroad, boosting market confidence that the domestic economy will maintain stable performance this year, officials and experts said. .
Despite downward economic pressure intensified by emerging uncertainties, China has full confidence in its ability to achieve sustainable and healthy economic development, Vice Premier Han Zheng said during a meeting Thursday with Chinese and foreign entrepreneurs. at the 2022 Boao Forum for Asia Annual Conference in south China’s Hainan Province.
This year, macroeconomic policies are characterized by greater intensity, stronger support for the real economy and grassroots communities, and rapid implementation, Han said, adding that China’s economy recorded a stable overall performance.
China will also make efforts to minimize the economic impact of COVID-19, ensure the stability of industrial chains and energy supply, and improve the business environment with equal treatment for all types of market players. , said Mr. Han, quoted by the Xinhua news agency.
Yi Gang, governor of the People’s Bank of China (PBOC, central bank), also pledged at the forum to strengthen efforts for the real economy by maintaining an accommodative monetary policy throughout the year and by being ready to support small and medium-sized enterprises (SMEs) with more measures if necessary.
Yi also stressed the central bank’s commitment to maintaining price stability. “Price stability is our political priority,” he stressed during a forum session on Friday, adding that this was particularly important in agricultural production as well as in the production and import of key energies, such as coal, oil and gas.
Experts said the remarks mean greater policy efforts on multiple fronts may be underway to shore up China’s economy and cushion rising challenges both at home and abroad.
After posting better-than-expected 4.8% year-on-year GDP growth in the first quarter, China’s economy now faces more headwinds as the resurgence of COVID-19 hurts domestic demand and stability. of the supply chain.
Unstable external factors are also on the rise, as geopolitical tensions have inflated global energy and food prices, while monetary tightening in developed economies has tightened global liquidity conditions.
China’s policy responses accelerated as the central bank and State Administration of Foreign Exchange Control (SAFE) on Monday proposed 23 measures to support the real economy, focusing on aid to market players hard hit by various difficulties, on the facilitation of internal economic circulation, as well as on the promotion of foreign trade.
Wang Chunying, a spokeswoman for SAFE, said on Friday that the 23 measures will make more enterprises eligible for trade facilitation policies, strengthen export credit insurance support, and help qualified enterprises. in cross-border financing.
With multiple political support and better control of COVID-19, China’s economy is expected to rebound in the second half following slowing in the second quarter, said Hu Yifan, regional investment director and head of macroeconomics for the Asia-Pacific region. at UBS Global Wealth Management.
Hu said she expects China to implement supportive policies at a faster pace, which might eventually include stronger measures to boost consumption as well as moderate easing of housing sector restrictions.
Wen Bin, chief researcher at China Minsheng Bank, said the central bank should make more use of structural monetary tools to support agricultural production and the efficient use of coal, thus helping to strengthen the foundations of an environment of stable prices.
It was decided at a central bank meeting on Friday to step up support for agricultural production and the supply of key energy, while putting in place policies to support small businesses and vulnerable groups affected by COVID-19.