China’s “Two sessions” convey confidence to world development

MARCHING THROUGH THICK AND THIN

The Chinese economy contracted 6.8 percent year on year during the first quarter. Consumption, investment and exports have declined. Pressure on employment has risen significantly. Enterprises, especially micro, small, and medium-sized businesses, face growing difficulties.

Worldwide, the pandemic has ravaged the global economic order, disrupted industrial and supply chains and caused a contraction in international trade that is expected to fall between 13 and 32 percent in 2020, according to the WTO.

China has set no specific target for economic growth this year due to great uncertainties but made practical plans to ensure more than 9 million new urban jobs, give full play to over 100 million market entities and improve people’s livelihoods.

Xi stressed analyzing China’s economic situation from a comprehensive, dialectical and long-term perspective, urging efforts to foster new opportunities amid challenges and make new advances amid changes.

He also stressed creating a new development pattern in which domestic and foreign markets can boost each other, with the domestic market as the mainstay.

The government has decided to further cut taxes and fees, reduce enterprises’ production and operating costs and increase financial support to keep business operations stable.

Liaoning Oxiranchem, Inc., a chemical producer affected by COVID-19, saw its output fall by 26 percent and profits slump by 80 percent year on year in the first quarter.

Aided by government policies, Oxiranchem’s production and sales in May are catching up, said Zhu Jianmin, chairman of the company and a political advisor. “The government’s endeavor to safeguard the economy by unclogging and stabilizing industrial and supply chains will help more private businesses out.”

This year’s two sessions also sent signals of speeding up reforms in key areas, including state-owned enterprises, factor markets, finance and taxation, social security, and primary-level governance.

Priority will be given to new infrastructure, new urbanization initiatives and major projects, which will not only boost consumption but also facilitate structural adjustments and enhance growth sustainability.

China is also making greater efforts to foster a more vibrant and enabling business environment in which all companies are treated as equals and engaged in fair competition, with strengthened protection of intellectual property rights.

“The Chinese nation is adept at turning crises into opportunities, disadvantages into advantages, and turning costs into the driving force of progress,” said Han Qingxiang, professor at the Party School of the CPC Central Committee.