The Chinese state planner on Monday presented measures to promote high-quality development during the period of the 14th Five-Year Plan (2021-25) and to support economic recovery.
China will continue to implement macroeconomic policies to promote the steady, healthy and sustainable development of the national economy, and will make timely adjustments according to the changes, said Ning Jizhe, deputy head of the National Development Commission and of reform.
The country will continue to implement a proactive fiscal policy, Ning noted, adding that by 2021, general public budget spending will exceed 25 trillion yuan ($ 3.85 trillion), up 1.8 trillion. % compared to the previous year.
More structural tax reduction policies will be put in place to support small and medium-sized businesses and support the real economy, Ning said. The country will extend inclusive loan repayment extension policies and the Small Business Credit Loan Support Program. Inclusive loans for SMEs by large commercial banks will increase by more than 30%, he said.
The country will continue to promote reforms and establish a high-level market system to stabilize the foreign trade and investment market. It will also promote the construction of the Hainan Free Trade Port and other highlands for opening, thus strengthening the dual circulation development model with the national economy as a pillar.
Ning said China will focus on demand management to cultivate the domestic demand system and coordinate the development of domestic and foreign demand. The country has seen a 4% drop in per capita consumer spending, which has been affected by COVID-19.
Ning also said there is a need to strengthen scientific and technological autonomy and improve innovation capabilities. China will significantly increase its investment in basic research, strengthen basic technological research and further strengthen international cooperation in this area.
The country will release a new plan to build infrastructure to boost the digital economy, expand 5G applications and accelerate the construction of industrial internet and data centers, Ning noted.
China has set its GDP growth rate at over 6% for 2021. Hu Zucai, vice president of the NDRC, said it was the first time that the GDP indicator has been qualitatively defined in the five-year economic plans.
Despite the strong economic recovery in China, uncertainty remains quite high as the pandemic is not yet over globally. A qualitative growth target will leave room for uncertainty and help China respond to various risks and challenges in a more active and flexible manner, Hu said.
This does not mean that GDP growth is not necessary. The plan sets quantitative indicators such as unemployment rate, energy consumption and carbon emissions, which are linked to GDP growth and involve efforts to realize the potential for economic growth.
Hu warned that China should not just talk about GDP growth and sacrifice the benefits of quality and ecological environment for the benefit of economic growth, as the country has moved to high-quality development.
The country developed the draft plan for the 14th FYP (2021-25) for economic and social development and long-term goals until 2035, which was submitted to both sessions for consideration.
The project also covers employment, income, education, medical care, pensions, care for the elderly and other areas related to livelihoods. The government plans to create more than 11 million new urban jobs this year, with an unemployment rate of less than 5.5%.
