Employees at an engineering machinery manufacturer in Shandong province work on the company’s loader production line. [Photo/Xinhua]
The State Council, China’s cabinet, recently unveiled policies to bail out businesses and stabilize the overall macro economy.
Thanks to effective coordination between efforts to prevent and combat COVID-19 and measures to promote economic and social development, China’s economic situation has improved from April’s level.
However, due to the resurgence of COVID-19 cases in some places and geopolitical conflicts, downward pressure on China’s economy has increased.
The policy measures on fiscal, fiscal, monetary, transportation and logistics aspects presented by the State Council are aimed at lubricating the cycle of supply and demand in time to eliminate bottlenecks in industry and supply chains and safeguard the downward pressure on the economy.
Given that many companies have been hit hard by the pandemic and are in dire need of political support, the package of measures could not have come at a better time.
The guidelines should be adopted to direct resources to the most needed and urgent areas to solve the most important problems. The country must also focus on long-term economic and social development to lay the foundation for subsequent development.
How to unlock more policy dividends, unlock the potential of economic growth in policy implementation, and ensure that all types of policies reach market participants with precision are directly related to the ultimate impact of policies. To do this, several measures should be taken at the same time.
Policy outreach, interpretation and guidance should first be strengthened so that market players can quickly benefit from the policies they deserve. Authorities should take full advantage of the important role of information in driving policy implementation and encourage local governments to integrate and use existing information platforms to comprehensively collect, analyze and accurately correlate information to support their “one-stop” and ” to achieve barrier”-free” access to businesses and individuals.
Also, a good communication mechanism between government and business should be established to collect real-time feedback from business on the impact of policy implementation.
A mechanism should also be established aimed at strengthening the day-to-day supervision of economic operations, especially the production, supply and marketing of key industries, in order to detect problems in economic operations and solve difficulties in order to generate political dividends as soon as possible can become.
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