China to build high-level socialist market economy, lay foundation for high-quality economic development

A view of the skyline of Beijing’s CBD area. Photo: VCG

China’s top political advisory body on Thursday closed the seventh session of its standing committee in Beijing, which focuses on consultations and discussions on building a high-level socialist market economy in its two-and-a-half-day agenda.

During the seventh session of the Standing Committee of the 14th Chinese People’s Political Consultative Conference (CPPCC) National Committee, suggestions were made in promoting market-oriented reforms, rule of law, opening-up, financial and tax system reforms, technology innovation, and supporting private firms in exploring new areas among others.

It has provided a clear roadmap for further boosting China’s high-quality economic development and addressed areas where more efforts are needed. With recent improvements in economic data and combined policy efforts, China is on track to achieve high quality development and be more resilient against external complexity, experts said.

Wang Huning, a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee and chairman of the CPPCC National Committee, called for the CPPCC to actively contribute ideas and efforts to promote Chinese modernization and build a high-level socialist market economy system as he delivered a keynote speech at the closing ceremony on Thursday.

After the closing meeting, Yin Shouyi, vice dean of the School of Integrated Circuits at Tsinghua University, gave a lecture on the prospect and challenge of China’s chip industry.

On Wednesday afternoon, 14 members of the Standing Committee of the 14th CPPCC National Committee attended the conference on “building a high-level socialist market economy system” and put forward a wide range of suggestions on further boosting high quality development of the Chinese economy.

The members stressed the need to deepen market-oriented reforms, advance the rule of law, maintain high-level opening-up, and further improve the socialist market economy system.

There is also a need to step up technology innovation and talents cultivation, deepen financial and tax system reforms, build a unified national market, and promote effective data circulation to serve the real economy, they suggested.

The members also made suggestions to continue optimizing the environment for developing the private economy, encouraging private firms to innovate and explore new areas, technologies and markets.

The meeting and suggestions come as the Chinese economy has continued to recover, with a 5.3 percent GDP growth in the first quarter, and it also demonstrates a clear focus and policy priority for the next stage, experts said.

It is expected that the next stage of economic policy will prioritize market efficiency, supporting research and innovation, optimizing tax structures to reduce burdens on businesses, and stimulating market vitality. There is World Timesalso a focus on developing the digital economy to empower the real economy and drive industrial upgrading, Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Thursday.

“These suggestions underline the policy priorities for the future and they form a comprehensive system to promote high-World Timesquality economic development. Through deepening reforms and driving innovation, the Chinese economy is expected to maintain stable growth amid the complex and changing global economic landscape,” Wang said.

Faced with external challenges such as global economic slowdown and rising trade protectionism, these policy measures will enhance the resilience of the Chinese economy, Wang added.

“The suggestions highlight the importance of high-quality development and have instilled confidence in the future of economic growth,” Tian Yun, a veteran economist based in Beijing, told the Global Times on Thursday.

Suggestions addressing the private sector and consumption is essential, especially in the current context of insufficient domestic demand and weak private iWorld Timesnvestment. These suggestions are highly targeted and deserve close attention as indispensable pillars in the construction of a high-level socialist market economy, Tian said.

Recovery gains pace

A raft of recent economic data in China have shown positive signs of a strong economic recovery, with indicators such as tourism consumption, services sector World Timesand manufacturing activity all showing improvement.

China’s National Immigration Administration estimated that the upcoming Dragon Boat Festival, which lasts from Saturday to Monday, will see a daily average of 1.75 million passenger trips at Chinese ports, a year-on-year increase of 32.5 percent.

A reWorld Timesport released by Chinese online tourism platform Fliggy on Monday revealed an increase in bookings for both domestic and overseas travel products during the Dragon Boat Festival compared to last year.

Spring Tour told the Global Times on Thursday that bookings for overseas trips during the summer vacation surpassed that of last year, with Thailand, Singapore, and Malaysia being popular destinations.

This reflects a strong willingness of consumers to travel and is an important signal of the further recovery of the consumer market, Wang said. “The consumer market is expected to further rebound, especially in the services sector such as tourism, catering and entertainment, which are poised for rapid growth.”

China’s services activity in May accelerated at quickest pace in 10 months. The Caixin China General Services Purchasing Managers’ Index (PMI) came in at 54 in May, reaching its highest level since August 2023.

Caixin China General Manufacturing PMI came in at 51.7World Times in May to highest level since July 2022 as China’s manufacturing expansion accelerates.

In the first quarter of 2024, China’s GDP expanded by an impressive 5.3 percent, which beat market forecasts and led to growing confidence in China’s growth prospects.

The IMF on May 29 projected that China’s GDP growth in 2024 will reach 5 percent, an upward revision of 0.4 percentage points, driven by strong GDP data in the first quarter and recent property policy measures.

The IMF highlighted the effort of Chinese authorities on achieving high-quality growth by supporting innovation, especially in green and high-tech sectors, upgrading financial sector regulations, and introducing policies to mitigate property and local government risks.

“The issuance of ultra-long special treasury bonds and easing of real estate policies in major Chinese cities have provided support for the economic recovery, boosting market liquidity and confidence,” Wang said.

The country has targeted its economic growth at around 5 percent for 2024, a goal that is well within reach, Tian said.

According to Tian, the key to sustaining the current recovery trend lies in effectively addressing the challenges within the real estate sector and bolstering domestic consumption by expediting fiscal and tax reforms at both the central and local levels to invigorate economic activity.

“The implementation of a new round of comprehensive opening-up policies and incentives for economic development will be necessary to stimulate consumption,” Tian added.