At 10 o'clock, this press conference will explain how to do your own business well

On April 28, the State Council Information Office held a press conference, attended by responsible officials from the National Development and Reform Commission, the Ministry of Human Resources and Social Security, the Ministry of Commerce, the People's Bank of China, and other departments to answer reporters' questions.

Just three days earlier, on April 25, the Political Bureau of the Central Committee held a meeting to analyze and study the current economic situation and economic work. At that time, the press release mentioned:

We must continuously improve the policy toolbox for stabilizing employment and the economy, with established policies being implemented early to see results, and timely introducing incremental reserve policies based on changes in the situation.

Three days later, the press conference was held, just before the last few working days before the "May Day" holiday. Against the backdrop of China's economy exceeding expectations in the first quarter and the context of the China-U.S. tariff war, how will we coordinate domestic economic work and international economic and trade struggles? This press conference provided the answer.

The host believes that this press conference clearly conveyed several key messages.

Message 1: Regarding the difficulties and problems faced in economic operation, especially external shocks, our policy toolbox is very rich, and we have ample contingency plans.

In the first quarter, GDP grew by 5.4% year-on-year, marking a "good start" for the Chinese economy. This "good start" is substantial and hard-won. It should be noted that the external environment has been so chaotic and complex since the end of last year, and the high base of 5.3% growth in the first quarter of last year makes the achievement of 5.4% in the current context fully demonstrate the resilience and vitality of the Chinese economy.

However, many have pointed out that the impact of external factors such as the U.S. imposition of tariffs on the Chinese economy will gradually become apparent. The first quarter was good, but what about the second, third, and fourth quarters?

The host noticed that both research institutions and public opinion are focusing on one word—policy.

In the third quarter of last year, when new situations and problems emerged in economic operation, the Central Committee made decisive decisions and launched a package of incremental policies.

The package of incremental policies not only played a key role in achieving the annual economic work targets last year but also contributed significantly to the "good start" in the first quarter of this year.

Moreover, the significance of the package of incremental policies goes beyond that.

Luo Zhiheng, chief economist at Guangdong Kaiyuan Securities, told the host:

The package of incremental policies has played a very significant role in stabilizing confidence and expectations. Its introduction has made market entities realize that once we face major shocks and difficulties, macroeconomic adjustments can be made based on new situations, and new policies can be introduced. It has released our firm determination to develop. This has made market entities more composed when facing new shocks, such as the current U.S. pressure on us.

Today's press conference also demonstrated our ability to adjust in a timely manner based on changes in the new situation.

At the press conference, the host particularly noted a statement from Zhao Chenxin, deputy director of the National Development and Reform Commission:

Most of these policies will be implemented in the second quarter.

The host learned that "these" includes both established policies and new policies introduced based on changes in external circumstances. Most of the policies in "these policies" will be introduced in the second quarter, which is the next two months. The formulation and implementation of policies involve multiple departments. At the press conference, a clear timetable for the policies was provided, which not only stabilizes domestic expectations and boosts market confidence but also indicates that we have ample contingency plans for various difficulties and issues in economic operations.

Among these, special mention should be made of the response to the impact of the U.S. imposing tariffs.

The host learned that moving forward, regardless of how the U.S. plays its cards or escalates, we are fully prepared. Relevant policies will focus on targeting and operability, emphasizing enhancing the sense of gain for enterprises and the public, and will be rolled out as soon as they are mature.

Information Two: Doing our own thing is not just about the present but also about the long term. All parties are making efforts.

At the press conference, five areas were introduced where policies will be implemented:

｜｜Support for employment

｜｜Stabilize foreign trade development

｜｜Promote consumption

｜｜Actively expand effective investment

｜｜Create a good environment for stable development

In terms of supporting employment, the main measures include encouraging enterprises to actively stabilize employment, increasing vocational skills training, expanding support through work-for-relief programs, and strengthening public employment services.

In creating a good environment for stable development, the main measures include continuously stabilizing and activating the capital market, consolidating the stability of the real estate market, and increasing financial support for the real economy.

The host learned that each point here represents specific measures that will be gradually introduced in the future.

Many of these policies focus on addressing urgent current issues.

Against the backdrop of tariffs, the country will introduce policies to help foreign trade enterprises expand into the domestic market. For foreign trade enterprises, how to weather the storm is the most important issue at present.

In recent days, industries and enterprises have been actively seeking solutions and finding paths forward. In mid-April, eight associations, including the China General Chamber of Commerce, the China Chain Store & Franchise Association, and the China Department Store Association, stated that they would organize production and sales matching meetings, training sessions, and other activities to help foreign trade enterprises understand domestic market demands and standards, promoting products that are suitable for the market.

At the same time, we are also formulating policies based on the principles of "one industry, one policy" and "one enterprise, one policy" to help enterprises overcome difficulties.

For enterprises, a little help can allow them to catch their breath, and after withstanding the storm, they will become stronger. This is the resilience of the Chinese economy.

Policies not only need to address immediate issues but also consider long-term development.

The host noted that this time, the "Two New" policy has once again expanded its scope—incorporating industrial software and other updates into the support range of the "Two New" policy.

It should be noted that industrial software is still one of the few areas in which China is "choked." The foundation of China's industrial software is relatively weak, and the bottleneck of key core technologies has not been fundamentally resolved, which does not fully match our strength as an industrial power.

The host has previously discussed the logic behind the "Two New" policy:

High-end, intelligent, and green, using policy support to guide industry and enterprise transformation and upgrading.

This time, incorporating industrial software into the "Two New" support range will undoubtedly promote a new round of development in the industrial software industry, which will also provide strong support for the transformation and upgrading of the manufacturing industry and intelligent development In addition to industrial software, the press conference also mentioned that policies will accelerate the deep integration of technological innovation and industrial innovation, promoting the deep integration of artificial intelligence with 60 key industry directions and 700 basic scenarios.

A few days ago, the Central Political Bureau meeting specifically mentioned the need to accelerate the implementation of the "Artificial Intelligence +" initiative.

In contrast, here is a set of data.

In 2024, China's intelligent computing power scale is expected to grow by 74.1% year-on-year, more than three times the growth rate of general computing power during the same period, with a market size reaching USD 19 billion, a year-on-year increase of 86.9%.

The rapid growth and rapid application of artificial intelligence are a reflection of the emerging pillar industries accelerating their growth in China.

This is also the future that China's economy is "accelerating" towards.

By coordinating short-term and long-term strategies, we can better focus on our own affairs. Regardless of how external circumstances change, if we concentrate on doing our own things well, we can create the greatest certainty for the Chinese economy.

Risk Warning and Disclaimer

The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment goals, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at one's own risk