To resolve the current difficulties its economy is facing, the Chinese government is expected to implement a series of policies to ensure stable economic growth and boost domestic demand. It plans to focus on four areas to stimulate the growing momentum, according to analysts.
Not a few market analysts are of the view that the policies will drive up the government's expenses to achieve desired results.
China recently stated that GDP growth for the first quarter was 7.4%, with the country's economic growth rate expected to slip further.
The proposed policies will focus on four major areas. The first one will be to relax entry into the services sector and to strengthen development in the energy-saving and environmental protection industry, as well as facilitate industrial upgrades.
In addition, the government is also set to build new economic zones to facilitate the balancing of the regional economics. Policies that encourage consumption and stabilize export volumes will be announced soon.
Other than that, a mechanism to stabilize economic growth will be established through a complete economic system in the market and innovation sector.
Easing entry into the service industries indicates that China's related government agencies will expand their investment in several areas, including medical services, education and finance. The relaxation is expected to stimulate industry potential and create more job opportunities.
Additionally, boosting investment in less advanced regions in China and spurring consumption signifies that the implementation of the government plan for developing these places will be accelerated.
Li Xunlei, chief economist at Haitong Securities, stated that the government's policies related to helping economic growth will be moderate since it has stressed that it will not launch large-scale stimulus policies to achieve rapid growth.
Zhu Haibing, chief economist at JPMorgan Chase in China, predicted that the government will speed up investment in infrastructure and raise budgetary allocation in areas, such as railway construction and environmental protection.
