A new principle introduced is to "promote stability through progress, while establishing the new before abolishing the old". This suggests a dual strategy of stimulating economic growth to stabilize market confidence and employment, while cautiously transitioning from outdated economic patterns and industries in the decline phase, and prioritizing technological innovation to drive growth.
In a move to enhance policy coherence, the conference emphasized the need for a unified approach in macroeconomic steering. It was proposed that the evaluation of new policies - covering fiscal, monetary, employment, industrial, regional, technological and environmental protection - should include an assessment of their potential contractionary impacts, effects on market sentiment, as well as the appropriateness of their timing. This holistic consideration ensures non-economic initiatives are aligned with the macroeconomic policy consistency.
During the conference, the term "effectiveness" was mentioned 27 times (compared to 16 times in 2022). This highlights a strategic shift towards augmenting the efficiency of fiscal expenditures and the effects of policy implementation. The pursuit of enhanced capital efficiency will be marked by a transition to stricter fiscal management and more stringent approval processes in 2024. Additionally, the high prioritization of policy effects underscores an emphasis on the practical implementation and tangible outcomes of these policies.
Furthermore, nine key tasks for 2024 have been identified, including technological innovation, expanding domestic demand, deepening reforms and opening up. This framework, along with priority development sectors specified in the conference, presents optimistic signals for the year ahead.
Key Tasks for 2024
(1) Build modern industrial system through sci-tech innovation:
The coordination of sci-tech innovation and industrial development becomes a top priority. More emphasis is placed on the industrialization of sci-tech achievements and the development of new productive forces, aligning with the principle of establishing the new before abolishing the old.
(In 2022, the industrial sector was separately deployed and ranked as the second priority.)
- Implement high-quality development for key industrial chains in manufacturing, strengthen quality support and pursue a standard-led approach.
- Key sectors of development
New-type industrialization: digital economy, AI
Strategic emerging industries: biomanufacturing, commercial aerospace, low-altitude economy, etc.
Future industries: quantum, life sciences, etc.
Traditional industry transformation and upgrading: intelligent digital technology, green technology
- Strengthen the principal role of enterprises in sci-tech innovation
(In 2022: emphasizing the government's role in driving key technological breakthroughs and highlighting the leading role of enterprises in sci-tech innovation. The change in expression indicates a shift towards greater emphasis on enterprise initiative and leadership in innovation.)
- Encourage the development of venture capital and equity investment.
(2) Vigorously expand domestic demand:
This section uses nearly 100 more characters (222 characters in 2022-- 308 characters in 2023), and its priority has been moved down to the second place.
(In 2022: the priority was given to reviving and expanding consumption)
- The principle of creating a virtuous cycle of mutual promotion between consumption and investment was introduced for the first time.
Emphasize "dual-engine" drive of consumption and investment, integrate effective investment with consumer demand. - Stimulate potential consumption:
- New types of consumption: digital consumption, green consumption, health consumption, smart home appliances, entertainment and tourism, sports events1, and trendy domestic brands, etc.
Traditional consumption: major consumer purchases such as EV, electronic products, etc. - Expand effective investment:
Increase the income of urban and rural residents, expand the scale of the middle-income group and optimize the consumption environment3.
Equipment updates and consumer goods replacement: guided by higher standards in technology, energy consumption and emissions, etc. - Key government investment: key core technology breakthroughs, new-type infrastructure, energy conservation, emission reduction and decarbonization.
Investment and financing: implement new mechanisms to encourage cooperation between government and non-government capital, support the participation of non-government capital in new-type infrastructure construction.
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Edited by Navy Liu: liuchuanjun@mysteel.com