Li Keqiang calls for support for the real economy
China’s PM Li Keqiang has argued in favor of supporting the real economy, emphasizing manufacturing, services, and small and private enterprises. For these actors, the tax and fee burden should be further reduced.
Macroeconomic policies should be maintained but timely adjusted to accommodate market participants and generate stable market expectations. At a meeting on local and national economic development in Nanjing last week. There, leading government officials from seven provinces and autonomous regions reported on the local economic situation and made policy proposals.
China has taken targeted and timely measures to address the challenges posed by growing uncertainties in the national and international environment in order to ensure stable economic development and achieve the goals set for this year, Li said.
However, downward economic pressure and regional imbalances would become more intense. He called for a full awareness of possible difficulties and conflicts, as well as the consistent deepening of reform and openness, in order to keep economic activity stable and promote high-quality development.
China’s GDP rose 6.5 percent year-on-year in the third quarter of the year. This was below the 6.8 percent in the first quarter and 6.7 percent in the second quarter, as the National Statistics Office announced. The official manufacturing PMI, an economic indicator for industrial expansion, fell to 50 points in November, 0.2 percentage points less than in October. A reading above 50 indicates growth, and a reading below reflects downward pressure.
As a countermeasure, Li demanded a reasonable expansion of domestic consumption. In addition, barriers to entry for private investors should be further reduced, while major projects that promote economic development and improve livelihoods should be tackled as soon as possible.
The government should make employment at all levels a priority in order to increase prosperity and social stability, from the perspective of market participants, to promote the rationalization of the administration and at the same time an effective, stable and transparent business environment for fair competition to create, said
