How to do a good job in economic work in 2023

To do economic work in 2023, we need to have the overall strategic picture in mind. We should start with improving public expectations and boosting confidence in development.

Expanding domestic demand

Large countries enjoy the advantage of a large domestic market. Expanding domestic demand serves as the important foundation for unblocking the circulation of the national economy and promoting the overall improvement of economic operation. Expanding domestic demand can effectively promote high-quality development of China’s economy. China should give full play to the consumption and investment, give priority to the recovery and expansion of consumption, and effectively drive investment society-wide through government investment and policy incentives.

Accelerating the construction of a modern industrial system

China has the most complete industrial system in the world and accounts for about 30% of global manufacturing output. For the past 13 years, China has been the world’s leading manufacturer. China should take accelerating the construction of a modern industrial system as the main focus to promote economic recovery and growth, and focus on improving the industrial level, strengthening the weak links in the industrial chain, seizing new industrial opportunities, and improving the industrial structure and system.

Unswervingly consolidating and developing the public sector while encouraging, supporting, and guiding the development of the non-public sector

China should ensure equal treatment for state-owned enterprises (SOEs) and private enterprises institutionally and legally. This helps reinforce the resilience of China’s economy, tap greater potential for economic growth, make development more dynamic, and drive the high-quality development. The reform of state-owned assets and SOEs should be carried to a deeper level and SOEs should improve their modern corporate governance with distinctive Chinese characteristics. China will encourage the private sector and private enterprises to grow and expand, and protect their rights and interests in accordance with the law in China.

Making greater efforts to attract and utilize foreign investment

Opening up is a fundamental state policy of China. Foreign investment serves as an important link between domestic and international markets and resources. Making greater efforts to attract and utilize foreign investment will help facilitate positive interplay between domestic and international economic flows. China should facilitate high-standard opening up, ease market access, carry out the new catalog of industries for encouraging foreign investment, and protect the rights and interests of foreign enterprises in accordance with the law in China. China will attract global resource elements by domestic circulation. 

Effectively preventing and defusing major financial risks

Security is the prerequisite for development. Preventing and defusing major financial risks is important for both virtuous financial and economic circulation and stable economic operation. China should tackle the problem from both the symptoms and root causes, and combine long-term and short-term considerations. Steps should be taken to ensure stable development in the real estate market, strengthen the security guarantee of food, energy resources, and important industrial supply chains. China will effectively guard against and defuse financial risk and local debt risks, thus ensuring no systemic risks arise.