Policies to boost recovery momentum of China’s economy

New measures at both national and local levels will give a shot in the arm to the vitality and development of the private economy, which is of great significance in promoting urban employment.

1 min read
An industry robot works at the analysis and testing center of a private enterprise in Ningbo, east China's Zhejiang Province, March 21, 2023. (Xinhua/Weng Xinyang)

(Xinhua) — Amid the multiple global and domestic challenges that it faces, China is actively bolstering the recovery momentum of its economy, with efforts including an array of pragmatic policies and measures to spur the growth of the private sector, consumption, and investment.

The Chinese economy has been steadily recovering of late, reaping a 5.5 percent growth in the first half of this year, which is higher than that of the world’s major economies. It is a hard-won achievement, given the backdrop of a slowing global economy.

The latest raft of moves will help sustain and strengthen the upward momentum of the Chinese economy and promote its high-quality development, both in the short term and the long run.

On Tuesday, the country unveiled 28 detailed measures to be applied in the near future, ranging from fair market access to stronger financial support and better government services, to tackle problems that private enterprises are facing, and stimulate the development of the private economy.

The measures were announced after the central authorities issued a guideline last month on boosting the growth of the private economy, which acts as one important driving force for Chinese modernization and an indispensable foundation for high-quality development.

The private sector contributes approximately 50 percent of China’s tax revenue, 60 percent of its GDP, and 80 percent of new urban jobs. Currently, it accounts for more than half of the country’s foreign trade and overall investment. At the end of March, the number of registered private enterprises surpassed 49 million, or 92.3 percent of the total number of firms in the country.

New measures at both national and local levels will give a shot in the arm to the vitality and development of the private economy, which is of great significance in promoting urban employment.

Meanwhile, solid steps have also been taken to expand consumption, which plays a basic role in driving economic growth. Consumption’s contribution to economic growth reached 77.2 percent for the first six months of the year.

Recently, the National Development and Reform Commission, China’s top economic planner, rolled out 20 measures to spur the consumption of items and services, including new energy vehicles, home appliances, electronics, and catering. The country’s record high box office revenue in July serves as an example of robust consumption in the cultural and tourism sectors.

After a steady shift for the better in epidemic prevention and control, China’s economic recovery has been progressing with twists and turns. Despite new difficulties and challenges, such as insufficient domestic demand and a grim and complex external environment, the Chinese economy has tremendous resilience and potential for development.

With the slew of adopted and upcoming policies at all levels, the Chinese economy will surely continue its growth momentum, accomplishing effective upgrades in quality and an appropriate expansion in quantity.

Xinhua News Agency

Founded in 1931, Xinhua News Agency is one of the largest news organizations in the world, with over 10,000 employees across the globe. As the main source of news and information for China, Xinhua plays a key role in shaping the country's media landscape and communicating its perspectives to the world. The agency produces a wide range of content, including text news articles, photos, videos, and social media posts, in both Chinese and English, and its reports are widely used by media organizations around the world. Xinhua also operates several international bureaus, including in key capitals like Washington, D.C., Moscow, and London, to provide in-depth coverage of global events.

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