Advisors call for digital push and innovation

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A visitor tries out smart equipment during an AI innovation and application summit in Jinan, east China’s Shandong Province, April 19, 2021. [Photo/Xinhua]

The second half can support the economic recovery and anchor market expectations

China should take more steps to unleash the growth potential of digital transformation and technological innovation in the second half of the year to promote a sustained economic recovery, policy advisers said Monday.

Such moves can go a long way in anchoring market expectations and triggering long-term growth momentum, they said.

They also called for specific measures to support the healthy development of the platform economy and more financial products to advance digital technologies.

Liu Shijin, deputy director of the Economic Affairs Committee of the National Committee of the Chinese People’s Political Consultative Conference, the country’s top political advisory body, said the country should pay more attention to deepening reform and opening up and unleashing the potential of innovation in the second half of the year to stabilize the economy.

While macroeconomic adjustments deal with near-term downward pressures, the ultimate boost for growth can come from harnessing the structural drivers of growth, Liu said at a press conference on Monday.

He called for more efforts to promote the development of urban clusters, improve the efficiency of basic industries, expand middle-income groups and accelerate digital transformation and green development.

With further reforms planned to overcome constraints in these sectors, the country will be able to achieve both short-term and long-term development goals, Liu said, adding that a GDP growth target of 5. 5% for the second semester is worth considering.

China’s economic growth slowed to 2.5% year-on-year in the first half due to unexpected shocks including COVID-19 outbreaks, but has shown signs of recovery since May.

The resilient performance of the financial markets bears witness to the improvement in the growth prospects of the Chinese economy, driven by innovative sectors.

The benchmark Shanghai Composite Index rose 1.55% to close at 3,278.10 points on Monday, with 40 stocks in the new energy vehicle sector hitting the daily upper limit, according to market tracker Wind Info. .

The renminbi, China’s currency, also largely maintained its strength, thanks to stable economic fundamentals, the onshore exchange rate of the renminbi against the US dollar standing at 6.7340 on Monday evening, weakening by 5.68% since the beginning of the year.

In contrast, the Japanese yen and euro have weakened more than 10% against the greenback so far this year, with the euro and dollar holding the same value for the first time in 20 years last week. .

Liu Shangxi, president of the Chinese Academy of Fiscal Sciences, said it is possible for the Chinese economy to achieve economic growth of around 5 percent year-on-year, if major shocks caused by COVID-19 do not recur and major risks are resolved in a timely manner.

Although China’s economic recovery still faces increasing pressures, positive GDP growth in the second quarter despite unexpected shocks and sustained momentum in high-tech manufacturing and new energy sectors highlighted the resilience of the Chinese economy, said Liu, who is also a member of the National Committee of the CPPCC.

Miao Wei, former minister of industry and information technology and member of the national committee of the CPPCC, stressed the need to launch concrete measures as soon as possible to support the healthy development of the platform economy, so as to to stabilize expectations on the development of the sector. outlook and boost market confidence.

Efforts should be made to encourage platform enterprises to participate in domestic science and technology projects, facilitate their listing at home and abroad, and bring more financial products to the capital market to support digital technologies, Mr. Miao said.

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