Opinion

 

1. Adapt comprehensive measures to release domestic demand

 

China's economy is seeing recovery in the first two months of 2023, according to the newly released macroeconomic data. However, the economy is still in the initial recovery stage, with some long-time structural problems. It is important to focus on the basics of development, and expand domestic demand, so as to stabilize economic growth.

 

2. Stability the key to implementing monetary policy

 

As shown from the newly released statistical data on Chinese finance, China's new loans set a new high, and outstanding social financing also exceeded expectations. Monetary stability is an important foundation for stable economy, employment, and prices. Stability is the key requirement in the implementation of prudent monetary policy. Macro economy is a continuous process, while monetary policy serves to iron out fluctuations of aggregate demand during this process, so as to avoid the damage on factors of production and social wealth caused by ups and downs of the economy.

 

3. The rise of the digital economy

 

The Central Economic Work Conference proposed to develop digital economy, enhance regular regulation, and support platform enterprises to give full play to their abilities in driving the development, creating employment, and participating in international competition. At present, to seize the initiative in digital economy becomes a vital step in building up advantages for future development. Digital economy is one of the main driving forces of the economic growth. The expanding scale of digital industries and information consumption brings about more new growth for economic development. Digital technology supports the digital transformation of traditional industries, creating more derivative values.

 

Policy

 

1. The State Administration of Market Regulation recently issued four supporting regulations of the Anti-Monopoly Law, namely the regulations on prohibiting the abusive use of administrative power to exclude and restrict competition, regulations on prohibiting monopoly agreements, regulations on prohibiting the abusive use of market dominance, and the regulations on investigating concentrations of undertakings, which will come into effect since April 15.

 

2. The Ministry of Culture and Tourism recently issued opinions on promoting the high-quality development of the online tourism market. According to these opinions, the legitimate rights and interests of tourists will be protected, and a healthy industrial ecology will be constructed among platforms, business operators, and tourists.

 

3. The Ministry of Industry and Information Technology recently issued the 2023 Guide on Constructing the National Standard System for Automotive Chips (draft for comment) for public feedback. According to this draft, more than 30 key standards will be set by 2025.

 

Data

 

1. According to the data from the National Bureau of Statistics, investment in high-tech industries increased by 15.1% year on year from January to February this year, 9.6 percentage points higher than the total investment in fixed assets investment.

 

2. According to the latest data from the State Administration of Foreign Exchange, in February this year, the total turnover in China's foreign exchange market was RMB 20.64 trillion.

 

3. According to the National Bureau of Statistics, from January to February this year, China's industrial enterprises above designated size achieved a total profit of RMB 887.21 billion, a year-on-year decrease of 22.9%.

 

4. According to the Ministry of Commerce, from January to February this year, China's outbound direct investment in non-financial sector reached RMB 136.04 billion, up 35.7% year on year.

 

5. According to the Ministry of Industry and Information Technology, from January to February this year, China's software business revenue was RMB 1.446 trillion, up 11% year on year. The total profit of the software industry was RMB 176.9 billion, up 12.2% year on year.

 

6. China Electric Power Planning & Engineering Institute recently released the "China New Energy Storage Development Report 2023", which predicts that by the end of the "14th Five Year Plan", the scale of China's new energy storage is expected to exceed 50 million kilowatts.

 

7. According to the latest statistics from CCID Research Institute of the Ministry of Industry and Information Technology, the innovation index of small and medium-sized enterprises with specialized, refined, and innovative technology and products in February increased by 10.6% compared to the same period last year, and 5.2% compared to last month.

 

8. China Mobile, China Telecom, and China Unicom recently released their 2022 annual report. The three major operators' total operating revenue reached RMB 1.7 trillion, an average increase of 9.8%, and their net profit was close to RMB 170 billion, an average increase of 8.7%.

 

9. According to recent estimates by the Data Center of the Ministry of Culture and Tourism, it is estimated that in 2023, the number of domestic tourists in China will be around 4.55 billion, an increase of about 80% year on year; domestic tourism revenue will reach about RMB 4 trillion, an increase of approximately 95% year on year.

 

(Source: Economic Daily)