News 1+1 | What should China's economy do in the second half of the year? Refinement | Government | Economy

On July 24th, the Political Bureau of the Communist Party of China Central Committee deployed economic work for the second half of the year. What are the important judgments of this meeting regarding the current economic situation? What should we do for economic work in the second half of the year? News 1+1 invites Zhang Jun, Dean of the School of Economics at Fudan University, to jointly monitor the second half of China's economy in 2023.

Monitoring and Setting the tone, the Political Bureau of the Central Committee of the Communist Party of China deploys economic work for the second half of the year

How to view the current economic situation? What are the new difficulties and challenges? Actively expanding domestic demand, how to leverage the fundamental role of consumption in driving economic growth? What is the latest assessment made by the meeting on the current real estate situation? The central government has designated key areas for economic work in the second half of the year. Click on the video to learn together!

How to understand "to better leverage the driving role of government investment"?

Zhang Jun, Dean of the School of Economics at Fudan University: China's state-owned departments, such as state-owned enterprises, state-owned assets, and local governments at all levels, can be broadly referred to as government departments or public sectors. They are all important drivers of public capital expenditure. Because our country has a significant comparative advantage, in a special stage of economic downturn pressure, in order to stabilize the economy, they must be at the forefront in the field of basic investment and play a leading role. This is still very important for us to stabilize overall demand, especially investment demand. Once the overall demand improves and the economy slowly returns to a normal track, I believe the confidence of our private economy will greatly improve. They will also have greater hope for the future prospects, and private investment will become more active. So at this meeting, it is important to emphasize the need to better leverage the role of government investment in driving growth.

How to increase income by increasing residents' income and expanding consumption?

Zhang Jun, Dean of the School of Economics at Fudan University: ① Increasing residents' income can be achieved through increasing their labor remuneration. For most ordinary people, labor remuneration is the main source of income, which is related to the productivity of employment units and institutions. Therefore, I believe that at the basic level of labor income, as the economic structure changes, the mechanism of wage formation should also be continuously optimized to ensure that wage growth can synchronize with labor productivity growth, and the proportion of labor remuneration in national income can continue to increase, approaching the global average level We can reduce the expenditure pressure on the general public from a cost perspective, such as reducing costs in areas such as childcare, elderly care, basic education, and healthcare, as these are areas where the expenditure pressure on the general public is relatively high. If we can have some policies that allow the government to share a larger proportion of costs, it will reduce the pressure on household costs and also increase the income of the people. So I believe that both of these aspects may become important ways for us to increase resident income.

Promoting the development of private economy, new deployments and requirements

The private economy is related to boosting confidence, solving employment problems, and innovating to enhance the vitality of the Chinese economy. How can the Political Bureau of the Central Committee of the Communist Party of China effectively optimize the development environment for private enterprises in the second half of the year? From top to bottom, what are the policies and measures to promote private investment that are worth paying attention to and observing? Click on the video to learn together!

"31 Measures for Private Economy", Real Recruitment and Practical Recruitment, Implemented as Essential

Zhang Jun, Dean of the School of Economics at Fudan University: I think the "31 Measures for Private Economy" have put forward very high requirements for relevant departments and local governments at all levels. In the past, we have introduced various policies to support the private economy, but there is still a certain lack of implementation, and this time it can be said that we have taken it seriously. The integration policy of the system has resolved the problems accumulated over the years in the development of the private economy, and proposed such a highly targeted integrated policy framework, which should be said to be the first time. The next step in achieving results requires local governments at all levels and relevant ministries to come up with very specific and executable action plans. I personally believe that if we can formulate very specific and targeted detailed plans based on local conditions in implementing the central opinions, the policy environment and predictability of the policy framework on which the private economy relies will be greatly enhanced. In the development process of private economy and private enterprises, the so-called policy discontinuity and uncertainty that are often discussed will also be fundamentally changed.