The relevant responsible comrades of the Central Finance Office explained in detail the spirit of the 2023 Central Economic Work Conference

Xinhua News Agency, Beijing, Dec. 17 (Xinhua) -- Relevant responsible comrades of the Central Finance Office explained in detail the spirit of the 2023 Central Economic Work Conference

Xinhua News Agency reporter

The Central Economic Work Conference was held in Beijing from December 11 to 12. General Secretary Xi Jinping attended the meeting and delivered an important speech, comprehensively summarizing the economic work in 2023, deeply analyzing the current economic situation, and systematically deploying the economic work in 2024.

How do you view the trend of China's economy? What important information will be released at this meeting around doing a good job in economic work in 2024? Relevant responsible comrades of the Central Finance Office will be interviewed by the main central media as soon as possible after the meeting, deeply interpret the spirit of the 2023 Central Economic Work Conference, and respond to the current economic hot issues.

This year's main expected targets are expected to be successfully achieved, and favorable conditions will be stronger than unfavorable factors next year

Question: What are the characteristics of this year's economic operation, and how do you view the internal and external environment facing the mainland's economic development next year?

Answer: General Secretary Xi Jinping's important speech at the Central Economic Work Conference comprehensively summed up this year's economic work and made a profound analysis of next year's economic situation. We understand that, in a nutshell, the mainland's economic operation this year is characterized by "one high, one low, and two flat," that is, the growth rate is relatively high, employment is stable, prices are low, and the balance of payments is basically balanced, and the main expected goals are expected to be successfully achieved. First, the economic strength has reached a new level. Some institutions and experts and scholars predict that the annual economic growth will be about 5.2%, and the GDP will exceed 126 trillion yuan. This year, the mainland is still the largest engine of global growth, contributing about one-third to global economic growth. Second, employment prices are generally stable. The average surveyed unemployment rate in urban areas dropped to about 5.2 percent, 0.4 percentage points lower than last year, and the consumer price index rose by about 0.3 percent. Third, the balance of payments is basically balanced. The import and export volume is basically the same as that of the same period last year, and the export market share is expected to remain at about 14%. Fourth, high-quality development has been steadily promoted. Positive progress has been made in the construction of a modern industrial system, new breakthroughs have been made in scientific and technological innovation, the foundation for safe development has been consolidated and consolidated, and people's livelihood has been effectively guaranteed.

Next year, the mainland's economy will face more opportunities than challenges, and favorable conditions will outweigh unfavorable factors. From an international point of view, today's world is chaotic and intertwined, the changes in a century are accelerating, and international political disputes and military conflicts have erupted at many points. The momentum of world economic growth is insufficient, and according to the forecasts of international institutions, the world economy and trade next year as a whole will not be as good as before the epidemic. From a domestic point of view, there are blockages in the economic cycle. The main reasons are: the effective demand is insufficient, the residents' consumption and enterprises' willingness to invest is not strong enough; there is duplication of layout and involution competition in some emerging industries, and there is overcapacity in some industries; social expectations are weak, and enterprises are unwilling to invest and dare not invest; there are still many hidden risks, and it takes a process to resolve the real estate, local debt, and financial risks accumulated over the years.

At present, the mainland's economic development is still facing many opportunities. First, we have the world's most potential hyperscale market. With the gradual improvement of social expectations, high savings will gradually transform into consumption and investment. Second, macroeconomic policies will continue to provide support for economic recovery. This year's issuance of an additional 1 trillion yuan of treasury bonds, as well as RRR and interest rate cuts, tax cuts and fee reductions and other policy effects will continue to be released next year, and new measures will be introduced next year, and the incremental policy and stock policy will be superimposed, which will effectively promote the economic recovery. Third, there is still sufficient policy space. Prices on the mainland are relatively low, the central government's debt level is not high, and there are conditions for stepping up the implementation of monetary and fiscal policies. Fourth, we have injected strong impetus into comprehensively deepening reform and opening up. We will deepen the reform of state-owned enterprises, promote the development and growth of the private economy, increase efforts to attract foreign investment, and continue to optimize the business environment, which will continue to stimulate the enthusiasm and creativity of business entities. Fifth, the new round of global scientific and technological revolution and industrial transformation contains new opportunities. Breakthroughs in artificial intelligence, commercial aerospace, quantum technology, biomanufacturing and other fields will be accelerated, and green development will accelerate the transformation of production and consumption, which will promote the transformation of the production industry and provide a broader stage for the economic development of the mainland.

On the whole, the basic trend of the mainland's economic rebound and long-term improvement has not changed, and the factors and conditions supporting high-quality development continue to gather and increase, so we must enhance our confidence and confidence.

Persist in seeking progress while maintaining stability, promote stability through progress, and establish first and then break through

Question: The meeting proposed to intensify macroeconomic regulation and control, what are the considerations for macroeconomic regulation and control policies such as fiscal policy and monetary policy next year?

Answer: To achieve the main expected goals of economic and social development next year, we understand that we must grasp the following points in work guidance.

First, we should insist on seeking progress while maintaining stability, promoting stability with progress, and establishing first and then breaking down. Stability is the overall situation and foundation, and it is necessary to come up with more policies that are conducive to stabilizing expectations, growth, and employment. Progress is the direction and driving force, we must be vigorous and enterprising, we must take the initiative to stand up what should be established, and we must resolutely break on the basis of what should be broken, and constantly accumulate more positive factors to achieve overall economic and social stability. At the same time, it is necessary to make steady progress in adjusting policies and promoting reforms, grasp the timing and effectiveness well, and not deviate from reality and rush for results.

Second, the proactive fiscal policy should be appropriately strengthened to improve quality and efficiency. It is necessary to make good use of the fiscal policy space and improve the efficiency of funds and the effectiveness of policies. Optimize the structure of fiscal expenditures, strengthen the financial guarantee for major national strategic tasks, strictly control general expenditures, and truly use funds to the best advantage. It is necessary to optimize the investment direction and quota allocation of local government special bonds, and reasonably expand the scope of capital use. Implement the policy of structural tax reduction and fee reduction. It is necessary to strictly supervise and control transfer payment funds and strictly enforce financial and economic discipline. Enhance fiscal sustainability and strengthen the bottom line of the "three guarantees" at the grassroots level.

Third, a prudent monetary policy should be flexible, moderate, precise and effective. Liquidity should be kept reasonably abundant, and the scale of social financing and money supply should be commensurate with the expected targets of economic growth and price levels. There are two new meanings in this expression: First, the index of the scale of social financing is ranked ahead of the money supply, because this indicator is more closely related to economic growth; and second, the previous "nominal economic growth rate" is changed to "the expected target of economic growth and price level", so that the target requirements of economic growth and price level can be better coordinated, and the price level is an important regulation and control target of monetary policy. It is necessary to give full play to the dual functions of monetary policy tools, revitalize the stock, improve efficiency, and guide financial institutions to increase support for scientific and technological innovation, green transformation, inclusive small and micro enterprises, and digital economy. Promote the steady and moderate decline of comprehensive social financing costs. It is necessary to maintain the basic stability of the renminbi exchange rate at a reasonable and balanced level.

Fourth, it is necessary to enhance the consistency of macroeconomic policy orientation. Strengthen the coordination and cooperation of fiscal, monetary, employment, industrial, regional, science and technology, environmental protection and other policies to ensure that efforts are made in the same direction and form a joint force. For example, fiscal policy and monetary policy should be strengthened in terms of the progress of debt reduction, replenishment of bank capital, and issuance of government bonds. For the first time, the meeting proposed to include non-economic policies in the evaluation of macro policy orientation coherence, which is highly targeted for strengthening policy coordination. It is necessary to strengthen economic propaganda and public opinion guidance, strengthen expectation management, and resonate with macroeconomic regulation and control policies at the same frequency, so as to provide strong support for the sustained economic rebound.

The "troika" makes concerted efforts to attract and utilize foreign capital more vigorously

Question: At present, the problem of insufficient demand on the mainland is quite obvious, how can the "troika" make concerted efforts next year to promote the economic recovery?

Answer: Next year, it is necessary to strengthen demand-side management, effectively drive the "troika" of consumption, investment, and export, and make production capacity useful. It is necessary to make overall plans to expand domestic demand and optimize supply, give full play to the advantages of the super-large-scale market and strong production capacity, so that the domestic cycle is based on the main driving force of domestic demand, and drive the improvement of the quality and level of international circulation. To realize the coordinated efforts of the "troika", it is necessary to do a good job in the following aspects.

First, it is necessary to strengthen and improve macroeconomic regulation and control, and properly implement a proactive fiscal policy and a prudent monetary policy. The Central Economic Work Conference proposed that next year, it is necessary to strengthen the counter-cyclical and cross-cyclical adjustment of macroeconomic policies, continue to implement a proactive fiscal policy and a prudent monetary policy, and strengthen the innovation and coordination of policy tools. In the fiscal policy, it is proposed to make good use of the fiscal policy space, strengthen the financial guarantee of major national strategic tasks, and reasonably expand the scope of local government special bonds used as capital. In the monetary policy, it is proposed to match the scale of social financing and money supply with the expected targets of economic growth and price level, so as to promote a steady and moderate decline in the cost of comprehensive social financing. Properly implementing these macroeconomic policy requirements and strengthening the consistency of macroeconomic policy orientations will be able to effectively expand aggregate demand and promote the economy to achieve effective qualitative and quantitative growth.

Second, it is necessary to better coordinate consumption and investment, stimulate potential consumption, expand productive investment, and form a virtuous circle in which consumption and investment promote each other. Next year, efforts should be made to promote the shift of household consumption from post-epidemic recovery to continuous expansion. It is necessary to vigorously develop new types of consumption such as digital consumption, green consumption, and healthy consumption, and actively cultivate new consumption growth points such as smart homes, cultural and entertainment tourism, sports events, and domestic "trendy products", so as to drive investment in related industries and consumption scenarios. It is necessary to improve technology, energy consumption, emissions and other standards as the traction, and promote large-scale equipment renewal and consumer goods trade-in. This aspect has great potential, which is an inevitable requirement for achieving high-quality development and people's high-quality life. It is necessary to give full play to the amplification effect of government investment, focus on supporting key core technology research, new infrastructure, energy conservation, emission reduction and carbon reduction, cultivate new momentum for development, and accelerate the construction of major projects in economically and social weak areas. It is necessary to implement a new mechanism for public-private cooperation, and support the participation of social capital in the construction of new infrastructure and other fields.

The third is to actively stabilize the fundamentals of foreign trade and accelerate the cultivation of new momentum for foreign trade. It is necessary to expand intermediate goods trade, service trade, digital trade, and cross-border e-commerce exports. It is necessary to consolidate the confidence of foreign-funded enterprises in the development of China, improve the resilience and safety of industrial and supply chains, give full play to the advantages of a sound industrial supporting system, and support foreign-funded enterprises to continue to participate in the international cycle "in China and for the world".

Question: Since the beginning of this year, the scale of foreign investment attracted by the mainland has declined, and the outside world has hyped up the "withdrawal of foreign capital from China." What are the reasons for the fluctuation in the scale of investment, what is the future trend, and what are the next measures to attract and make good use of foreign investment?

Answer: Affected by factors such as the continued sluggish global cross-border direct investment and the high base in the same period last year, the scale of foreign investment attracted by the mainland in the first 10 months of this year fell by 9.4 percent year-on-year, but the amount was still at a historically high level, especially the acceleration of foreign direct investment in the service industry and high-tech manufacturing industry, the number of newly established foreign-funded enterprises increased by 32.1 percent, the actual use of foreign capital in high-tech manufacturing increased by 9.5 percent, and the investment in China by developed countries such as Canada, the United Kingdom, France, Switzerland, and the Netherlands increased significantly.

There are many reasons for the recent fluctuations in foreign investment data, including both economic and non-economic factors. First, the external environment has undergone profound changes. Geopolitical risks have risen significantly, and some countries have promoted the repatriation of industries and capital, and introduced restrictions on China-related investment. Developed countries and emerging economies have introduced large-scale preferential policies, and international competition for attracting investment has become more and more intense. The second is the impact and impact of the epidemic. The epidemic has interrupted offline inspection and exchanges, resulting in a lack of understanding of the actual situation in China by multinational companies, and even a certain degree of misunderstanding and misinterpretation, which has affected investment decisions. Third, with the change of domestic development stage, labor costs have risen and the low-cost advantage has weakened. The gradient shift of some labor-intensive industries due to changes in comparative advantage is determined by economic factors and is also normal.

Looking ahead, we still have many favorable conditions to attract foreign investment. The first is the attractiveness of the hyper-scale market. Chinese's per capita GDP has exceeded 12,000 US dollars, the middle-income group has more than 400 million people, the world's largest and increasing, these constitute a huge and growing domestic market, will provide broad market space and cooperation opportunities for enterprises from all over the world. Many foreign-funded enterprises said that the Chinese market is not an optional question, but a mandatory question. The second is the support of a complete industrial system. China is the only country in the world that has all 41 industrial categories, 207 medium industrial categories and 666 industrial sub-categories listed in the United Nations Industrial Classification. The third is the cohesion of the new development pattern. In the process of building a new development pattern in the mainland, foreign-funded enterprises play a unique role as a link and bridge in connecting domestic and international circulation and optimizing the allocation of resource elements.

The use of foreign capital is an important part of China's basic national policy of opening up to the outside world, and greater efforts should be made to attract and utilize foreign capital. First, we will steadily promote institutional opening-up, combine high-level economic and trade agreement negotiations, take the initiative to benchmark international high-standard economic and trade rules, and deepen domestic reforms in relevant fields. Restrictions on foreign investment in the manufacturing industry will be lifted in an all-round way, the opening up of telecommunications, medical and other service industries will be expanded, and efforts will be made to break down hidden barriers to foreign investment access, so as to ensure that domestic and foreign investment can enter fields outside the negative list on an equal footing in accordance with the law. The second is to actively respond to the demands of foreign-funded enterprises, earnestly solve issues such as cross-border data flow and equal participation in government procurement, implement the national treatment of foreign-funded enterprises, promote fair competition, and continue to build a market-oriented, law-based and international first-class business environment. The third is to further facilitate the exchange of people between China and foreign countries, and on the basis of the recently announced unilateral visa-free policy, mutual visa exemption arrangement, and accelerated resumption of international flights, we will effectively break through the blockages and improve the facilitation level of foreign personnel coming to China for business, study, Xi and tourism.

The new quality productivity is marked by the improvement of total factor productivity

Question: How to understand the connotation of the concept of new quality productivity, and how to speed up the cultivation and formation of new quality productivity?

Answer: General Secretary Xi Jinping recently visited local areas for investigation and investigation, and has repeatedly proposed to speed up the formation of new quality productive forces. The Central Economic Work Conference proposed to promote industrial innovation through scientific and technological innovation, especially to use disruptive technologies and cutting-edge technologies to give birth to new industries, new models, and new kinetic energy, and to develop new quality productive forces. The important thesis of "new quality productive forces" is an innovation and development of the Marxist theory of productive forces, which further enriches the connotation of Xi Jinping's economic thought, and has both important theoretical and practical significance.

The new quality productivity is a contemporary advanced productivity born by the revolutionary breakthrough of technology, the innovative allocation of production factors, and the deep transformation and upgrading of industries.

To speed up the cultivation of new quality productive forces, we must grasp three points well. The first is to create a new type of workforce, including strategic talents who can create new quality productivity and applied talents who can master new quality means of production. The second is to make good use of new production tools, especially to master key core technologies, and empower the development of emerging industries. At the technical level, it is necessary to make up for shortcomings, build long boards, and attach importance to general technology. At the industrial level, it is necessary to consolidate strategic emerging industries, lay out future industries in advance, and transform and upgrade traditional industries. Third, it is necessary to shape the production relations that are suited to the new quality of productive forces. Through reform and opening up, efforts should be made to break through the blockages that restrict the development of new quality productive forces, so that all kinds of advanced and high-quality production factors can flow smoothly and efficiently allocate to the development of new quality productive forces.

Specifically, there are six policy initiatives.

First, it is necessary to smooth the virtuous circle of education, science and technology, and talents, promote the spirit of scientists and entrepreneurs, and create a good atmosphere that encourages bold innovation. The second is to speed up the improvement of the new national system, give full play to the strategic guiding role of the government, let enterprises truly become the main body of innovation, and let talents, funds and other innovative elements gather to enterprises. The third is to support the development of strategic emerging industries and future industries, encourage enterprises to accelerate digital and intelligent transformation, and realize the deep integration of the real economy and the digital economy. Fourth, accelerate the construction of a unified national market, continue to optimize the development environment of private enterprises, and truly give full play to the unique advantages of the super-large-scale market's rich application scenarios and the amplification of innovative benefits. Fifth, improve the mechanism for factor participation in income distribution, stimulate the vitality of production factors such as labor, knowledge, technology, management, data and capital, and better reflect the orientation of knowledge, technology and human capital. Sixth, we will expand high-level opening-up, continuously improve the business environment, strengthen the protection of intellectual property rights, form an open innovation ecosystem with global competitiveness, and share China's development dividends with global enterprises and talents.

Q: How can we further play the leading role of scientific and technological innovation and accelerate the construction of a modern industrial system?

A: Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping as the core, relevant departments and localities have strengthened their awareness of hardship, adhered to bottom-line thinking, effectively coped with the escalating containment and suppression in some countries, and achieved many milestones in the fields of science and technology and industry. The meeting clearly stated that it is necessary to lead the construction of a modern industrial system with scientific and technological innovation. To understand and implement the spirit of the meeting, we must focus on the following three aspects.

First, we must improve the new national system and do a good job in tackling key core technologies. The new type of national system we are talking about is a national system under the conditions of the socialist market economy, and it is necessary to give full play to the strategic guiding role of the government and the main role of enterprises in innovation. It is necessary to speed up the gap in the industrialization foundation and in-depth accumulation, continuously strengthen the resilience of the industrial chain and supply chain, and improve the security level of the modern industrial system.

Second, we must vigorously promote new industrialization and enhance the core competitiveness of the industry. It is necessary to actively adapt to and lead a new round of scientific and technological revolution and industrial transformation, vigorously develop the digital economy, accelerate the development of artificial intelligence, create a number of strategic emerging industries such as biomanufacturing, commercial aerospace, and low-altitude economy, open up new tracks for future industries such as quantum and brain science, and encourage the development of green and low-carbon industries. It is necessary to use advanced and applicable technologies such as digital intelligence technology and green technology to inject new momentum into traditional industries and accelerate the realization of transformation and upgrading.

Third, we must condense industrial needs and optimize the layout of the innovation system. According to the immediate needs of the industry and the needs of long-term development, it is necessary to condense and deploy a number of major national scientific and technological projects that have a long-term impact on the overall situation, continuously strengthen applied basic research and cutting-edge research, and further give full play to the role of national strategic scientific and technological forces such as the national laboratory system. It is necessary to encourage the development of venture capital and equity investment, and support long-term capital and patient capital to invest more in scientific and technological innovation.

In addition, the "new three" industries such as lithium batteries, photovoltaics, and new energy vehicles, which have attracted much attention, have developed rapidly in recent years and are also highly competitive in the international market. It is necessary to vigorously support enterprises to expand the domestic and international markets in depth, promote the optimization of industry technical standards, create a good competitive environment, and achieve the survival of the fittest in line with market laws.

Promote the development and growth of private enterprises and intensify the implementation of policies

Question: This year, the central government has introduced a series of policies and measures to promote the development and growth of private enterprises, what is the current implementation and results, and how can we further boost the confidence of private enterprises?

A: The private economy is an important force in promoting Chinese-style modernization. In July this year, the Central Committee of the Communist Party of China and the State Council issued opinions on promoting the development and growth of the private economy. Subsequently, relevant departments have successively introduced a series of supporting policy measures, forming a "1+N" policy system. At present, these policies and measures are being implemented as soon as possible, and the private economy is showing a positive development trend. The Central Economic Work Conference made further arrangements for the development and expansion of the private economy, and once again emphasized the adherence to the "two unwavering". To understand and implement the spirit of the meeting, it is necessary to improve relevant policies and measures, increase policy implementation, and strive to make private enterprises feel and accessible.

The first is to promote the development and growth of the private economy. Improve the system of socialist rule of law with Chinese characteristics, safeguard the property rights of private enterprises and the rights and interests of entrepreneurs in accordance with the law, and remove institutional obstacles that restrict private enterprises from participating in market competition fairly. Promote private enterprises to transform their development mode, transform their growth momentum, strengthen their industry, strengthen independent innovation, and achieve healthy and high-quality development of the private economy.

The second is to implement a number of landmark measures in terms of market access, access to factors, fair law enforcement, and protection of rights and interests. Carry out special governance of discrimination involving private enterprises in the field of bidding and bidding, and eliminate discriminatory practices such as ownership scoring. Promote and improve the system and mechanism for private enterprises to participate in the construction of major projects, and solve the financing problems of private enterprises. Optimize credit restoration and service mechanisms for private enterprises. Safeguard the lawful rights and interests of private enterprises in accordance with the law in the investigation and handling of cases involving enterprises and handling cases in other places.

The third is to stimulate the endogenous power and innovation vitality of private enterprises. Promote the establishment of public R&D platforms in key industries, support private enterprises to cooperate with scientific research institutions and universities to establish technology R&D centers and other innovation platforms, and take the path of specialization, refinement, and innovation. Increase the opening of application scenarios in high-end equipment, smart logistics, green and low-carbon fields, and encourage private enterprises to participate in the development and construction of new scenarios. We will further improve the innovation policy environment, and effectively realize the high quality and high price of innovative products of private enterprises and the profits of innovators.

Actively and prudently resolve real estate risks and accelerate the construction of a new model of real estate development

Q: The real estate market in mainland China is still in an adjustment cycle, and the central government proposes to actively and prudently resolve real estate risks and accelerate the construction of a new model of real estate development. To promote the steady and healthy development of the real estate market, what will be the policy focus next year?

Answer: At present, the situation and development trend of the real estate market in mainland China have attracted great attention from all sides. This meeting made special arrangements for doing a good job in real estate work next year and even for a longer period in the future. To comprehend and implement the spirit of the meeting, we need to focus on three aspects:

The first is to actively and prudently resolve real estate risks. Since the beginning of this year, all relevant parties have conscientiously implemented the decisions and arrangements of the Party Central Committee, adjusted and optimized the real estate regulation and control policies in a timely manner, and successively introduced a series of policies and measures such as "recognising the house without recognising the loan", "reducing the down payment ratio and interest rate" and "supporting financial institutions to meet the reasonable financing needs of real estate enterprises", which have achieved positive results. According to the latest data from the People's Bank of China, since November alone, the five major banks of industry, agriculture, China, construction and communications have invested more than 30 billion yuan in development loans to non-state-owned housing enterprises, including more than 14 billion yuan in the past two weeks. In the next step, we should continue to pay attention to the trend of the real estate market, meet the reasonable financing needs of real estate enterprises with different ownership systems without discrimination, and do not draw loans, continue to lend, and do not hesitate to lend to real estate enterprises in normal operation, so as to better support the demand for rigid and improved housing. It is necessary to strengthen the supervision of pre-sale funds to ensure the smooth completion of projects under construction. Through the joint efforts of all parties, the policy goals of preventing risks and stabilizing the market are completely achievable.

The second is to step up the promotion of the "three major projects" such as the construction of affordable housing, the construction of public infrastructure for both ordinary and emergency purposes, and the transformation of urban villages. This is a major deployment made by the CPC Central Committee in accordance with the new situation of real estate development. The "three major projects" are not only major livelihood projects to solve the urgent problems of the people, but also conducive to driving real estate-related investment and consumption and stabilizing the macroeconomic market. At present, the relevant work has been started. In the next step, we should pay close attention to improving various supporting policies, promote the implementation of a number of projects as soon as possible, form a physical workload, and see tangible economic and social benefits.

The third is to accelerate the construction of a new model of real estate development. The meeting put forward clear requirements for accelerating the construction of a new model of real estate development. This is a fundamental strategy to solve the problem of real estate development and promote the steady and healthy development of the real estate market. In promoting the construction of the "three major projects", it is necessary to increase the construction and supply of affordable housing, accelerate the construction of a housing supply system in which the government mainly provides basic security and the market mainly meets multi-level needs, so as to meet the rigid housing needs of wage and salary income groups and meet the diversified and improved housing needs of urban and rural residents. At the same time, it is necessary to improve the relevant basic systems in view of the outstanding contradictions and problems faced by the high-quality development of real estate, so as to lay a good institutional foundation for the construction of a new model of real estate development.

At present, the mainland real estate market is in a period of transition, although it has encountered some difficulties, but there are still broad prospects and solid support for sustainable development. With the continuous implementation of the major decisions and deployments of the CPC Central Committee, and the vigorous, orderly and effective implementation of various tasks, I believe that we will be able to effectively resolve risks, build a new model of real estate development, and promote the steady and healthy development of the real estate market.

Q: What arrangements did this meeting make for preventing and defusing risks, and how to prevent risks, especially systemic risks?

A: This year's Central Economic Work Conference and the Central Financial Work Conference held not long ago stressed the need to continue to effectively prevent and resolve risks in key areas such as real estate, local debt, and small and medium-sized financial institutions, and resolutely adhere to the bottom line of no systemic risks. To comprehend and implement the spirit of the meeting, we need to grasp the principles of three aspects:

First, it is necessary to coordinate the relationship between risk resolution and stable development. Regions with high debt risks should develop while turning debts into debts, find new development paths in the process of resolving debts, and make greater efforts to stimulate private investment and expand the use of foreign capital. Regions with low debt risk should be able to develop high-quality development as quickly as possible, especially the major economic provinces should really take the lead and make greater contributions to stabilizing the national economy.

Second, it is necessary to comprehensively strengthen supervision and resolutely adhere to the bottom line of no systemic risks. It is necessary to strictly supervise finance, strengthen financial and accounting supervision, strictly enforce financial and economic discipline, and firmly adhere to the bottom line of the "three guarantees" at the grassroots level. All financial activities should be brought under supervision and control in accordance with the law. Local governments must have the responsibility to defend the territory and fulfill their responsibilities, and all parties must make concerted efforts and cooperate closely, and take timely action to resolutely crack down on all kinds of illegal and criminal acts and illegal financial activities.

Third, it is necessary to adhere to the concept of systems and find correct ways and methods. It is necessary to be good at revitalizing stock assets and curbing incremental risks. Coordinate and resolve the risks of real estate, local debt, and small and medium-sized financial institutions.

On the whole, although there are still many hidden risks in some areas at present, under the strong leadership of the Party Central Committee with Comrade Xi Jinping as the core, as long as we adhere to the correct principles and working methods, the risks are still preventable and controllable, and we will certainly be able to keep the bottom line of no systemic risks. (ENDS)