Interpretation: The Significance Of The State Council'S Promulgation Of The Outline Of The Strategic Plan For Expanding Domestic Demand

On December 14, the Central Committee of the Communist Party of China and the State Council issued the Outline of the Strategic Plan for Expanding Domestic Demand (2022-2035).

On December 15, the National Development and Reform Commission issued the Implementation Plan of the 14th Five Year Plan for Expanding Domestic Demand Strategy.

Entering the new stage of development, what is the significance of China's firm implementation of the strategy of expanding domestic demand? What are the expected goals to be achieved? What are the specific deployments?

It is of great significance to firmly implement the strategy of expanding domestic demand

The outline points out that firmly implementing the strategy of expanding domestic demand and cultivating a complete domestic demand system is an inevitable choice to accelerate the construction of a new development pattern with domestic circulation as the main body and domestic and international double circulation promoting each other, and is a strategic decision to promote China's long-term development and long-term stability.

The outline covers 11 parts and 38 articles, comprehensively explains the planning background of China's implementation of the strategy of expanding domestic demand, clarifies the overall requirements, and proposes policy measures.

The outline points out that the implementation of the strategy of expanding domestic demand is to meet the practical needs of the people for a better life; It is an active choice to give full play to the advantages of the super large market; It is an inevitable requirement to cope with profound changes in the international environment; It is the key support for promoting economic cycle more efficiently.

Zhao Chenxin, deputy director of the National Development and Reform Commission, said that firmly implementing the strategy of expanding domestic demand is the key focus to accelerate the construction of a new development pattern, an important foundation to promote sustainable and healthy economic development, an active choice to highlight the responsibility of a major country, and an inevitable requirement to adhere to the people centred development idea.

The outline points out that, on the whole, opportunities and challenges for expanding domestic demand in China have undergone new development and changes. On the whole, opportunities outweigh challenges. We must firmly implement the strategy of expanding domestic demand, accurately grasp the development law of the domestic market, take precautions, seek advantages and avoid disadvantages, cultivate opportunities in the crisis, create new situations in the changing situation, constantly release the potential of domestic demand, give full play to the role of domestic demand, build a stronger domestic market, and promote the stable, healthy and sustainable development of China's economy.

"Entering a new stage of development, there is still much to be done to expand domestic demand." Zhao Chenxin said that China's residents have great potential for quality improvement and capacity expansion in consumption. There is a strong demand for investment in short supply and long forging. Promoting new urbanization and regional coordinated development will further expand the domestic market space. Gradual improvement of the market system will help fully stimulate market vitality, and the continuous improvement of supply level will lead to the creation of more market demand.

　　 Clarify medium and long-term goals and three major tasks

"The scale of consumption and investment has reached a new level", "the new industrialization, informatization, urbanization and agricultural modernization have basically been achieved", "the per capita income of urban and rural residents has reached a new level"... The outline looks forward to the long-term goal of implementing the strategy of expanding domestic demand by 2035 according to the strategic arrangement of building a socialist modern country in an all-round way.

The outline also defines the main objectives of implementing the strategy of expanding domestic demand during the "14th Five Year Plan" period: promoting consumption and investment, and achieving new breakthroughs in the scale of domestic demand; Improve the distribution pattern and continuously release the potential of domestic demand; Improve supply quality and better meet domestic demand; Improve the market system and stimulate domestic demand to achieve obvious results; Smooth the economic cycle and continuously improve the efficiency of domestic demand development.

Consumption is an important part of domestic demand, and promoting residents' consumption is an important starting point for implementing the strategy of expanding domestic demand. Zhao Chenxin said that in the new stage of development, China has the largest middle-income group in the world, with a per capita GDP of more than 12000 US dollars. Combining the optimization and upgrading of residents' consumption with the modern mode of production, it is the world's most growing consumer market, with huge potential to comprehensively promote consumption. The next step will focus on further improving traditional consumption, expanding service consumption, cultivating new consumption, advocating green consumption, expanding rural consumption, improving the system and mechanism to promote consumption, and vigorously promote consumption quality and upgrading.

To implement the strategy of expanding domestic demand, one of the key points is to expand investment space and give play to the key role of investment in optimizing the supply structure. Zhao Chenxin said that China's investment demand potential is still huge. Research shows that China's per capita infrastructure capital stock is only 20% to 30% of that of developed countries. The demand for traditional infrastructure construction is still large, the pace of new infrastructure layout construction is accelerating, the investment in industrial transformation and upgrading needs to be increased, and there are still many weak links in the livelihood field. For a period of time in the future, focusing on accelerating the complement of weak points, improving the quality of supply, constantly optimizing the investment structure, improving the efficiency of investment, and more stimulating the vitality of private investment, will add lasting impetus to the rational growth of investment demand.

The outline also laid out three key tasks: accelerating the cultivation of a complete domestic demand system, promoting the formation of a strong domestic market, and supporting the smooth domestic economic cycle.

"The market is an important strategic resource for big countries. Forming a strong domestic market is an important support for building a new development pattern, and it is also the economic advantage of big countries." Zhang Molan, vice minister of the U.S. - European Research Department of the China Center for International Economic Exchanges, said that the Outline anchored the long-term goal of 2035, comprehensively considered the domestic and foreign development trends and China's development conditions during the "14th Five Year Plan" period, clearly proposed three major tasks, and provided clearer ideas, clearer directions and more powerful measures to guide the promotion of domestic and international double cycle positive interaction.

　　 Put forward eight policies and measures to cultivate a complete domestic demand system

According to the whole chain of production, distribution, circulation, consumption, investment and reproduction to expand domestic demand, the outline makes deployment from eight aspects, including comprehensively promoting consumption, optimizing the investment structure, promoting coordinated development between urban and rural areas and regions, improving supply quality, improving the modern market and circulation system, deepening reform and opening up, solidly promoting common prosperity, and improving security capabilities, The implementation plan further details the specific tasks in these eight aspects.

"The content of the policy reflects a clear position of the people." Wang Wei, director of the Market Economy Research Institute of the Development Research Center of the State Council, said that a series of consumer promotion policies oriented to the well-being of the people will accelerate the improvement of the quality of life of all residents and move towards the goal of common prosperity.

The increase of residents' income is not only related to the growth of consumption, but also the focus of social attention. The outline proposes to improve the pattern of income distribution, build a basic institutional arrangement for the coordination of primary distribution, redistribution and tertiary distribution, increase the adjustment of taxes, social security, transfer payments and other adjustments and improve the accuracy, expand the proportion of middle-income groups, increase the income of low-income groups, reasonably regulate high income, ban illegal income, and promote social fairness and justice, Promote the all-round development of people and enhance the development potential of domestic demand.

Zhao Chenxin said that we should take expanding the scale of middle-income groups as an important policy goal, optimize the income distribution structure, expand human capital investment, and enable more ordinary workers to enter the middle-income groups through their own efforts. We will improve the primary distribution policy system, increase the proportion of labor remuneration in the primary distribution, and expand the channels for residents' business and property income. We will improve the redistribution adjustment mechanism, improve the multi-level social security system that covers the whole people, balances urban and rural areas, is fair, unified, safe, standardized, and sustainable, and effectively secure the bottom line of people's livelihood.