China develops new ways of macro regulation to support economy in past 5 years: report-Xinhua

Aerial photo taken on Jan. 10, 2023 shows a container terminal at the Port of Tianjin, north China’s Tianjin. (Xinhua/Zhao Zishuo)

BEIJING, March 5 (Xinhua) — China has developed new ways of conducting macro-regulation to keep the economy in reasonable range over the past five years, according to a government work report submitted to national lawmakers for consideration on Sunday became.

Avoiding over-reliance on investment as a means of achieving economic growth, the country deployed a wide range of measures, including those on the fiscal and monetary fronts, and remained focused on helping market firms get out of trouble overcome and grow, the report says.

The government took a holistic approach to achieving the annual development goals and strengthened sector-based, targeted, timely and precise regulation over the past five years, the report said.

“We took decisive action to bolster macro-policy support while refraining from adopting a barrage of strong stimulus measures that would hurt our potential for future growth,” it said.

By pursuing a proactive fiscal policy over the past five years, China has kept the headline deficit-to-GDP ratio below 3 percent and the public debt ratio around 50 percent, according to the report.

It found that tax cuts and fee cuts totaled 5.4 trillion yuan (about $781.3 billion) and 2.8 trillion yuan, respectively, over the past five years, which not only helped businesses overcome difficulties and stay afloat, but also fueled business growth and tapped sources of tax revenue.

In pursuing a prudent monetary policy, the government made flexible policy adjustments in light of new developments and maintained reasonably sufficient liquidity.

According to the report, inclusive loans to micro and small businesses have risen 24 percent annually, with the average interest rate falling 1.5 percentage points compared to five years ago.

The government made stable employment a key indicator that the economy is operating within reasonable range, worked hard to promote market-based employment and stepped up efforts to help companies stabilize and expand employment, the report said.

In response to shocks, the country refrained from repeated large deficit increases or excessive money printing, creating the macro conditions needed for prices to stabilize.

According to the report, growth in the consumer price index in China has been kept at a comparatively low level of around 2 percent over the past ten years.

“The difficulty of such a feat should not be underestimated,” it said. “This was conducive to maintaining the order of the market economy, creating scope for macro-policy implementation, and better satisfying the basic necessities of life for our people.” ■