China's Quantitative Easing Effectively Begins... Development and Reform Commission Deputy Director Projects About 8% Growth This Year

Ning Jizuo Deputy Director Faces Triple Challenges in Chinese Economy, Advocates Active Fiscal and Monetary Policies
Focuses on Expanding Electric Vehicles and Grade 1 Energy-Efficient Appliances to Boost Domestic Demand

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Ning Jizhe, Vice Chairman (ministerial level) of the National Development and Reform Commission (NDRC) of China and Director of the National Bureau of Statistics, stated that China's economy is expected to grow by about 8% this year. Although he cited forecasts from international economic prediction agencies, this is the first time a top Chinese economic official has mentioned the figure '8'.

In an interview with the state-run Xinhua News Agency on the 22nd, Vice Chairman Ning said that China's Gross Domestic Product (GDP) growth rate up to the third quarter of this year maintained a favorable growth rate of 9.8% year-on-year. He added that international economic forecasting agencies expect China's economy to grow by about 8% or more this year, and he did not deny these forecasts. Despite adverse factors such as strategic difficulties, rising international raw material prices, and the resurgence of COVID-19, the growth rate is expected to reach 7.5 to 8.0%. The Chinese government's growth target for this year is '6% or more.'

Vice Chairman Ning also elaborated on the triple challenges facing China's economy next year: demand contraction, supply shocks, and weakened expectations. He pointed out, "The Chinese economy faces complex issues such as slow domestic (consumption) recovery due to the resurgence of COVID-19, rising corporate costs and shrinking profits caused by unstable industrial supply chains, expanded global economic uncertainties due to the worldwide spread of infectious diseases, and excessive liquidity (inflation) in developed countries, all of which will weaken China's growth momentum."

Vice Chairman Ning emphasized that fiscal and financial resources will be actively invested in infrastructure development projects to stabilize the economy. He mentioned 102 infrastructure development plans included in the 14th Five-Year Economic Plan and stated that fiscal expenditures will be guaranteed for these projects.

He further stated that through the active issuance of local special bonds, they plan to actively utilize them for economic stabilization, especially at the end of this year and early next year. This means that alongside monetary policies such as lowering the Loan Prime Rate (LPR, benchmark interest rate) and the Reserve Requirement Ratio (RRR), an active fiscal policy card will be used. Considering that it takes about one month for the market to feel the effects of LPR and RRR cuts, it can be seen that the Chinese government has already used monetary and fiscal policy tools with next year's economy in mind.

Meanwhile, Vice Chairman Ning announced that, as part of efforts to revitalize domestic demand, they will focus on expanding the distribution of new energy vehicles such as electric cars and first-grade energy-efficient home appliances. There is a high possibility that government subsidies and other financial support for related products will increase significantly.

This content was produced with the assistance of AI translation services.