Expanding Domestic Demand through Policy Precision Services (Reporter's Note) Industry | Economy | Domestic Demand
Since the beginning of this year, China's economy and society have fully resumed normal operation, macroeconomic policies have been coordinated and strengthened, and the triple pressures of demand contraction, supply shock, and weakened expectations have been alleviated. Economic growth has been better than expected, market demand has gradually recovered, and economic development has shown a rebound and positive trend, achieving a good start to economic operation. The author recently conducted research in three provinces located in the eastern, central, and western regions. From workshops to fields, from numbers to actual results, I fully felt the enthusiasm of various business entities to strive for upward growth.
Furthermore, the current improvement in China's economic performance is mainly restorative, with weak endogenous driving forces and insufficient demand. Economic transformation and upgrading face new obstacles, and promoting high-quality development still requires overcoming many difficulties and challenges. How can proactive fiscal policies enhance efficiency and better serve the important task of expanding domestic demand in current economic work? The practice at the grassroots front line has provided some insights.
Targeting the expansion of new growth points in domestic demand and strengthening policy supply. In 2022, relevant departments issued regulations clarifying the definition of light-duty tractor trailers and the required C6 driving qualifications. This means that if people want to experience RVs, they don't have to buy all integrated RVs. They can have a standard ordinary private car and corresponding driver's license, and attach a trailer. It is this policy that has doubled the efficiency of Tongxin Precision Forging Co., Ltd. in Yidu City, Hubei Province, which produces ball neck connecting arms for trailer connecting rods. At present, with the support of local fiscal and financial credit policies, this enterprise is building a new industrial park to expand production capacity and reach higher levels. It can be seen that in the process of organically combining the implementation of the strategy of expanding domestic demand with deepening the supply side structural reform, the reform and innovation of policy supply is crucial. Sort out our "supply side" and see what other demands are waiting to be "on the road" like small trailers, and fiscal and tax policies can be strengthened to release them.
Focus on new driving forces and strengthen policy drive. Talents are the primary resource. To accelerate innovation and enhance new development momentum, it is necessary to better stimulate the enthusiasm of research institutions and enterprise researchers. At present, tax preferential policies for technology talents include deferred and installment payment of personal income tax. During the research process, many professionals also proposed to increase tax incentives for high-tech talents, in line with the improvement of financial research funding management and R&D expense deduction tax incentives in recent years, to promote the deep integration of innovation chain, industry chain, talent chain, funding chain, and policy chain, and improve the level of scientific and technological achievement transformation and industrialization.
Scientifically assess risk points and enhance policy synergy. Using special bonds as project capital to stimulate private investment, constructing public service facilities through PPP, and leveraging bank credit through financial subsidies and guarantees... From research, some places currently focus on strengthening the linkage between finance, industry, technology and other policies to amplify the leverage effect of financial funds. In this regard, it is necessary to establish a sound collaborative regulatory mechanism and strengthen asset liability constraints. Expanding investment and projects must meet the requirements of high-quality development, adapt to the needs of industrial transformation and upgrading, balance short-term, medium, and long-term economic and social benefits, and achieve scientific synergy. We must eliminate the irrational investment impulse of "rushing up" or "dispersing", avoid the formation of new idle assets and excess production capacity in some industries, and firmly guard the bottom line of preventing systemic risks.
