Stabilize the economy, why do these 6 provinces pick the beams?

At the current node when the economy is most difficult to stabilize, the economic provinces have been entrusted with heavy responsibilities.

Major economic provinces have been repeatedly asked to take the lead

The symposium of the main responsible persons of the major economic and provincial governments held on August 16 demanded that the major economic provinces should bravely pick up the beams and play a key supporting role in stabilizing the economy.

Recently, major economic provinces have been repeatedly asked to pick up the big beams.

At the meeting of the Politburo of the CPC Central Committee held on July 28, it was proposed that major economic provinces should bravely pick up the big beams, and provinces with the conditions should strive to achieve the expected goals of economic and social development.

On July 7, the symposium on the economic situation of the principal responsible persons of the governments of the southeast coastal provinces proposed that the five provinces and cities in the southeast coast should continue to provoke the beam of national development and economic stability, and play the main role in ensuring the country's financial resources.

China's economic growth target for 2022 is about 5.5%, but under the impact of exceeding expectations, the economic growth in the first half of the year was 2.5%, of which June reversed the negative growth of major economic indicators in the first two months, and although the economy continued to recover in July, there were still slight fluctuations.

In the process of stabilizing the economy, the economic province as the "protagonist" is naturally the greater the ability and the greater the responsibility.

Why these 6 economic provinces?

The six provinces participating in the August 16 meeting were Guangdong, Jiangsu, Shandong, Zhejiang, Henan and Sichuan. Why them?

Zhao Xijun, co-dean of the China Capital Market Research Institute of Chinese Min University, told the "China New Observation" column of China News Network that whether it is the scale and proportion of the economy, the absorption of employment, or the contribution to finance, the role played by the six major economic provinces in China's economic development is very large. Especially in the face of internal and external pressures, in order to stabilize the economy and make the economy perform better in the second half of the year, the economic provinces have more resources and stronger capabilities to do this.

Many figures revealed at the symposium can illustrate the importance of the six major economic provinces - the total economic volume of the six major economic provinces accounts for 45% of the country, which is the "top pillar" of the country's economic development. The 4 coastal provinces in the 6 provinces contributed more than 60% of the local net financial surrender to the central government, and it is necessary to complete the task of financial surrender. The number of market entities in the six provinces accounts for more than 40% of the country, contributing more than 40% of employment. The import, export and utilization of foreign capital in the six provinces are close to 60% of the country.

The "China New Observation" column of China News Network noted that from the perspective of total GDP in 2021, the top six provinces are Guangdong, Jiangsu, Shandong, Zhejiang, Henan and Sichuan. Among them, Guangdong's GDP exceeded 12 trillion yuan, Jiangsu's GDP exceeded 11 trillion yuan, Shandong's GDP exceeded 8 trillion yuan, Zhejiang's GDP exceeded 7 trillion yuan, and Henan's and Sichuan's GDP exceeded 5 trillion yuan.

From the fiscal revenue of the first half of 2022, Guangdong ranked first with 673 billion yuan, Zhejiang ranked second with 498.4 billion yuan, Jiangsu ranked third with 463.9 billion yuan, Shandong ranked fourth with 395 billion yuan, and Sichuan (247.9 billion yuan) and Henan (236.2 billion yuan) ranked seventh and eighth respectively.

Bai Jingming, a researcher at the Chinese Academy of Fiscal Sciences, told the "China New Observation" column of China News Network that these 6 major economic provinces are generally two major plates, one plate is the 4 coastal provinces, Guangdong, Jiangsu, Shandong, and Zhejiang are relatively developed in the economy, the proportion of high-tech industries is relatively high, and the basic conditions for economic development are good, the room for maneuver is greater, the family foundation is thick, coupled with the support of the national unified large market, it is expected that the 4 coastal provinces will not have much problem in completing the task of financial surrender, so as to ensure the stability of national financial resources and the central expenditure at the same level. Achieve regional financial balance, ensure basic people's livelihood, guarantee wages, and ensure operation, and realize a national chess game.

Bai Jingming said that another plate is Henan and Sichuan, of which Henan is a major grain producing province and plays an important role in agricultural stability. These two provinces have a greater advantage of being a latecomer, and the development speed in the past two years has been relatively fast. The economy of the 6 provinces is large, the total population is close to 600 million, accounting for more than 40% of the national population, and the proportion of the labor force population is relatively high, so the development of these provinces has an important role in ensuring employment and people's livelihood in the country.

How to pick the beams of the 6 major economic provinces?

In fact, recently, many major economic provinces have expressed their attitude to actively act and bravely pick up the beams, and put forward new requirements. For example, Guangdong said that it will go all out to promote a better economic rise in the third quarter and strive to achieve the annual economic development target.

Zhejiang proposed to ensure GDP growth of 6% in the second half of the year. Sichuan put forward the "fight for the economy" and required that all work in the second half of the year be done well in the spirit of "fighting", strive to complete the annual goals and tasks, and strive to increase the gdp of the province and region by about 1 percentage point higher than that of the whole country throughout the year.

How to make a difference? The "China New Observation" column of China News Network noted that in the first half of the year, in the "troika" that drove economic growth, exports performed relatively well, while investment and consumption needed to be further boosted.

Zhao Xijun held that it is very important for these major economic provinces to implement a series of policies and measures introduced by the central authorities as soon as possible. At the same time, it is necessary to accelerate the promotion of related investment projects and form more physical workload in the third quarter, that is, to increase investment and promote faster, which will become an important support for stabilizing the economy in the second half of the year. In addition, it is necessary to give greater support to market players, increase the rescue efforts of enterprises, stabilize employment and income, so as to further expand consumption, so that consumption in the second half of the year has a better improvement, and promote consumption to grasp the two important consumption areas of real estate and automobiles.

Actively expand effective investment and vigorously promote consumption have become the driving force for the economic provinces to stabilize the economy.

In terms of expanding investment, Guangdong demanded that the start of construction of major projects should be regarded as the top priority in stabilizing investment. Zhejiang has recently requested that it continue to set off a boom in the construction of major projects. It is necessary to firmly establish the concept of "project is king" and "look at the hero of development with projects" and spare no effort to promote the construction of a number of major projects that lay the foundation and benefit the long term.

In terms of promoting consumption, Jiangsu recently launched the "23 Articles to Promote Consumption". Sichuan recently issued opinions calling for promoting the recovery of consumption as a top priority. Encourage qualified localities to issue consumption vouchers in areas with large leverage, and strive to boost bulk consumption such as automobiles and home appliances.

Bai Jingming pointed out that in order to give play to the enthusiasm of the central and local governments, the policy toolbox should be used well, the policies that should be introduced should be introduced in a timely manner, and the policies that have been introduced should be implemented well. Moreover, the existing policy space should be sufficient, for example, the current balance of local special debt has not yet reached the debt limit, and the debt limit space should be revitalized according to law. That is to say, we should not engage in "flood irrigation", and at the same time make good use of the policies that have been introduced, enhance the timeliness of policy implementation, and make good use of structural policies.

Chief financial reporter of China News Network: Li Jinlei

Column Editor-in-Chief: Gu Wanquan Text Editor: Li Linwei Title Image Source: Xinhua News Agency Infographic Photo Editor: Xiang Jianying

Source: Author: Li Jinlei, China News Finance