The National Development and Reform Commission (NDRC) is set to leverage the combined effects of existing and new policies.
Following the release of China's first-half economic report, the NDRC convened its sixth private enterprise symposium this year.
According to the NDRC's official website, on July 20, NDRC Chairman Zheng Shanjie presided over the forum with private enterprises, soliciting opinions and suggestions on the economic situation for the first half of the year and the economic tasks for the second half.
Zheng Shanjie indicated that in the second half, efforts will focus on leveraging the synergistic effects of existing and new policies. He outlined plans to accelerate the cultivation of new consumption growth drivers, promote the implementation of major projects, facilitate a smooth transition between old and new growth drivers, deepen the construction of a unified national market, and intensify efforts to establish supporting legal systems for the promotion of the private economy.
High-Quality Development Advancing
Zheng Shanjie engaged in communication with representatives from five companies, including Sanquan Food, Huaxing Yuanchuang, Yidian Tianxia, Galaxy General Robotics, and Feishang Technology, which operate in sectors such as food processing, industrial automation testing equipment manufacturing, marketing services, humanoid robot R&D, and IoT services.
The participating business leaders, centering on the meeting's theme and combining their respective industry characteristics and corporate operations, analyzed the economic situation for the first half of the year. There was a general consensus that despite increased external uncertainties and instabilities this year, China's economy has withstood pressure, maintained stability with progress, and demonstrated strong resilience and vitality. Companies currently maintain stable production and operations, with market expectations steadily improving, and they possess the capability and confidence to achieve their annual production and operation targets.
The participating enterprises also offered suggestions on promoting synergy across industry chains, facilitating the transformation and upgrading of traditional industries, increasing the cultivation of innovative talent, strengthening the supply of data and other production factors, and standardizing market order in bidding and tendering.
Zheng Shanjie attentively listened to the participants' remarks, interacted with them, and responded to their requests and suggestions one by one. He stated that the perceptions and judgments of businesses regarding economic operations provide valuable reference for monitoring and analyzing the economic situation, formulating policy measures, and implementing macroeconomic regulation. A vibrant business sector is the driving force for the economy.
Zheng Shanjie noted that this year marks the beginning of the 15th Five-Year Plan period. With macro policies continuing to exert force, China's economy remained generally stable in the first half, with new quality productive forces being cultivated and expanded, and high-quality development advancing. Although changes in the external environment have brought many difficulties and challenges, the underlying conditions and fundamental trend of China's long-term economic improvement remain unchanged. He expressed hope that private entrepreneurs would strengthen their confidence, deeply explore opportunities arising from demand and industrial upgrading, stay committed to their core businesses, strengthen their real economy operations, and contribute more to promoting high-quality economic and social development.
Recent first-half macroeconomic data released by the National Bureau of Statistics shows that second-quarter GDP grew by 4.3%, a deceleration from the first quarter. First-half GDP growth was 4.7%, aligning with the annual economic growth target range of "4.5%-5%", laying a solid foundation and providing robust conditions and support for achieving the annual goal. However, the decline in fixed asset investment and fluctuations in total retail sales of consumer goods, along with the economic performance since the second quarter, reflect the prominent domestic supply-demand imbalance, indicating that the foundation for economic improvement needs further consolidation.
Facilitating a Smooth Transition Between Old and New Growth Drivers
Zheng Shanjie emphasized that doing a good job on economic tasks in the second half is crucial for achieving the annual development goals. Efforts will focus on leveraging the synergistic effects of existing and new policies, accelerating the cultivation of new consumption growth drivers, continuously promoting the implementation of major projects outlined in the 15th Five-Year Plan, facilitating a smooth transition between old and new growth drivers, accelerating scenario cultivation and opening, further building a high-quality data supply system, deepening the construction of a unified national market, continuously strengthening the endogenous driving force of economic development, and stimulating market vitality.
An analysis by a chief economist at a securities firm suggests that the 4.3% GDP growth in the second quarter may represent the low point for the year. The subsequent recovery trajectory depends on the implementation of domestic demand policies, the stabilization of the real estate sector, and changes in the external environment. Current consumption, real estate, and private investment remain relatively weak, making it necessary for growth-stabilizing policies to further tilt towards expanding effective demand. Accelerating the tangible effects of existing policies and timely introduction of new supportive measures will jointly support a smooth start to the 15th Five-Year Plan period.
Currently, in the face of structural differentiation within China's economy, facilitating a smooth transition between old and new growth drivers is a top priority in economic work. A recent report from a Chinese macroeconomic research forum stated that while China's economic growth has slowed somewhat and economic operations face certain pressures, positive structural changes are emerging. The new technology cycle, represented by artificial intelligence, is influencing China's economic operations through multiple channels such as commodity prices, capital market valuations, industrial production, and export structures. Meanwhile, traditional growth sectors like real estate and automobiles are still undergoing adjustment, and the recovery of domestic demand still requires policy support and the unleashing of potential through reforms.
The report mentioned that at the short-term macro-policy level, there is no need for overly aggressive fiscal and monetary policies. Economic structural differentiation requires a rebalancing of financial and fiscal resources. Fiscal funds should safeguard the baseline of people's livelihoods while exploring new forms to better leverage their role in catalyzing social investment and playing a guiding role. Monetary and fiscal policies still need to maintain an appropriately accommodative and more proactive tone, ensuring reasonably ample market liquidity. With prices remaining at low levels, a moderate interest rate cut in the second half of the year remains a viable option.
Zheng Shanjie also discussed implementing the "Legal Safeguarding for the Private Economy" initiative, intensifying efforts to establish supporting legal systems for the private economy promotion law, leveraging the multi-level regular communication mechanism with private enterprises, continuously fostering a favorable environment, and fully promoting the high-quality development of the private economy.
In May this year, the NDRC issued the "Action Plan for Legal Safeguarding of the Private Economy", aiming to promote the sustained implementation of the Private Economy Promotion Law, legally and institutionally guaranteeing equal access to production factors, fair participation in market competition, and effective protection of legitimate rights and interests, thereby further stabilizing expectations, boosting confidence, and promoting high-quality development of the private economy.
Private investment is a key indicator reflecting economic activity. Currently, private investment has declined. In the first half of this year, private investment decreased by 8.5% year-on-year, or by 4.9% excluding real estate development. Structurally, private investment is accelerating its shift from sectors like real estate and traditional manufacturing towards high-tech industries and new types of infrastructure.
A senior official from the NDRC's Bureau for the Development of the Private Economy stated that private enterprises possess the capability and conditions to seize market opportunities, grasp industrial development trends, invest and deploy in numerous new fields and tracks, continuously broaden their investment space, excel in the market tide, and achieve greater accomplishments and better development.