"Continuity and Validity of China's Economic Policy Needed... Appropriate Relationship Between Companies and Government Required"

Local experts have advised that continuous and valid government policies are necessary for China's economic recovery, and that companies need to be able to understand the long-term direction.

According to China's Pengpai Newspaper on the 6th, Premier Li Chang of the State Council chaired an expert symposium with eight experts from government research institutions, academia, and market research organizations. At the meeting, Premier Li emphasized, "China is at an important stage of economic recovery and industrial innovation," adding, "We must maintain an overall policy of seeking progress while maintaining stability and accurately and comprehensively implement the new development philosophy."

[Image source=Yonhap News]

Tian Xian, Vice Dean of the Wudaokou School of Finance at Tsinghua University, who attended the symposium, is known to have mentioned the relationship between the government and enterprises. Vice Dean Tian stated, "Consumption is driven by long-term income growth, which depends on employment," and "Employment relies on the private economy, and the biggest current problem in the private economy is the lack of confidence among entrepreneurs," in a recent public speech. He argued, "To solve this problem, the relationship between enterprises and the government must be properly managed." He also advised, "If entrepreneurs do not know the policy direction, they can only watch and end up making short-term investments instead of long-term ones," and "To promote innovation, the continuity, stability, and validity of macro policies must be maintained."

Lu Ming, Chief Economist at Sinolink Securities, who also attended the symposium, proposed corporate subsidies. Economist Lu suggested, "Young people with flexible employment should accumulate a certain level of work experience and improve career sustainability," and "It is worth fully considering providing subsidies to companies to alleviate youth unemployment caused by technological shocks." Furthermore, he emphasized, "The government should accelerate household registration system reform and urbanization processes, change talent attraction methods," and "increase inclusiveness for migrants."

Luo Zhiheng, Chief Economic Analyst at Weikai Securities, said, "Long-term construction bonds should be issued to stabilize the macro tax burden, and tax reductions and fee cuts should be promoted," adding, "The central government and local governments should issue balanced and regionally targeted consumer vouchers to stimulate consumption in the short term."

Meanwhile, the Chinese economy is showing a low-growth trend. The Caixin Services Purchasing Managers' Index (PMI) for June, released by the economic media Caixin, recorded 53.9, the lowest in five months. Although the Caixin Services PMI remained above the baseline (50), continuing six consecutive months of expansion, it fell below both the previous month's figure (57.1) and market expectations (56.2). The Caixin Composite PMI, which combines manufacturing and services, dropped 3.1 points from the previous month to 52.5 in June.

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