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E-mail China.org.cn, February 17, 2025
Shou Xiaoli:
Due to the time limit, we will have one last question.
CCTV:
We know that the Central Economic Work Conference held at the end of last year identified supporting the expansion of domestic demand as the primary key task. As such, what specific measures will we take in this regard? Thank you.
Liao Min:
Thank you for your question. At present, expanding domestic demand is a buzzword when it comes to analyzing China's macroeconomic issues. In fact, expanding domestic demand is related to both economic balance and stability and economic security. It is a strategic move in the sustainable development of our economy. China has a huge domestic market, with significant potential for both consumption and investment, which can be converted into momentum for economic recovery and growth. Domestic demand includes both investment and consumption. In 2025, the MOF will follow the decisions and deployment of the CPC Central Committee and the State Council, intensify efforts to support boosting consumption, improve investment efficiency, and take comprehensive steps to expand domestic demand. I will introduce the work from the following main aspects.
The MOF will take multiple measures and increase support to boost consumption. First, consumption is a function of employment and income, and promoting consumption contributes to stabilizing and improving the macroeconomy. The major purpose of counter-cyclical macro regulation is to increase employment and incomes among residents through multiple channels, thereby enhancing actual spending power. Second, we will support further expansion of the trade-in policy for consumer goods by widening its coverage, optimize the subsidy application process, and improve the recycling system to guide and stimulate more spending on big-ticket items that people need, thereby delivering greater benefits to consumers. Third, China has diverse consumption potential. We will make good use of fiscal policies to actively support the development of new industries such as the elderly care service industry and cultural tourism. We will support the improvement of related infrastructure, raise public service standards, and support the cultivation of more new consumer industries and consumption scenarios based on changing spending habits and adjustments to the economic structure. Fourth, we will roll out trials on the modern commercial distribution system, promote the implementation of a new round of actions to shore up weak links in national comprehensive freight hubs, expand the demonstration scope of the digital transformation and upgrading of highway and waterway transportation infrastructure, and reduce logistics costs, so that consumers can receive more benefits.
While directly introducing policies to support consumption, we also remain committed to supporting the expansion of effective investment. This is conducive to promoting economic growth and fostering new industries and consumption scenarios, thus driving the expansion of employment and increasing residents' incomes, fundamentally boosting overall consumption, and unleashing the potential of domestic demand.
To be specific, it is necessary to take coordinated steps to make good use of government investment funds, focus on key areas and weak links to increase investment, and improve investment efficiency. In addition to increasing the issuance of ultra-long-term special treasury bonds and the issuance and use of local government special-purpose bonds that I mentioned earlier, the central government budget for investment will also be appropriately increased, with reasonable distribution and priorities. In terms of implementation, we will make reasonable arrangements for bond issuance according to procedures, expedite the allocation of funds, promptly break them down into specific projects, and form physical workloads as early as possible. This will effectively leverage government investment to effectively drive more bank credit and social investment, promoting the stabilization of the economy.
As the Spring Festival approaches, my colleagues and I, on behalf of the MOF, would like to extend early new year greetings to everyone here today. Thank you for your interest in the financial work. Thank you.
Shou Xiaoli:
Thank you, Mr. Liao, and thanks to all the speakers and friends from the media. Today's briefing is hereby concluded. Goodbye.
Translated and edited by Chen Xinyan, Yan Bin, Liu Caiyi, Cui Can, Xiang Bin, Wang Xingguang, Xu Kailin, Wang Wei, Li Huiru, Fan Junmei, Liu Sitong, Mi Xingang, Wang Yiming, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
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