Among the proposed policies, the most significant is the speedy disposal of special-purpose bonds to support local government finances
A senior Communist Party official, in response to the current economic challenges faced by China, vouched for escalated response measures for achieving stable growth across various industries in the country. The current economic crisis in the country was further intensified by an ongoing property market collapse.
As stated by the deputy director in charge of the party's financial and economic affairs, Han Wenxiu, the current crisis calls for an immediate restructuring of the financial policies to navigate the ongoing inconsistencies in the economic performance of the country. His statement, followed by the vital policy meet, the third plenum, underscored the constant fall in effective demand despite the prevalence of an overall conducive economic environment. He also highlighted that the current situation necessitates the immediate implementation of solid macroeconomic policies, specifically an enhanced application of efficient fiscal policies. Among the proposed policies, the most significant is the speedy disposal of special-purpose bonds to support local government finances, which have been fraught with financial liabilities during declining property sector revenues. Han also stressed the importance of reviewing the fiscal relationship between the central and local governments, with the aim of strengthening local economic capacity and expanding tax bases to support long-term economic growth. Additionally, Han outlined plans to update the tax rules to include growing sectors such as e-commerce, reflecting efforts to modernize financial policies in the face of global competition and domestic challenges.
These proposals were pronounced amidst President Xi Jinping's call for increased investment in high-technology manufacturing to boost China’s global economic standing, highlighting a critical moment for reform in the country’s economic policies.
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