REPORT ON THE IMPLEMENTATION OF THE 2022 PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT AND ON THE 2023 DRAFT PLAN FOR NATIONAL ECONOMIC AND SOCIAL DEVELOPMENT文章源自英文巴士-https://www.en84.com/14305.html
Delivered at the First Session of the 14th National People’s Congress on March 5, 2023文章源自英文巴士-https://www.en84.com/14305.html
National Development and Reform Commission文章源自英文巴士-https://www.en84.com/14305.html
The National Development and Reform Commission has been entrusted by the State Council to deliver this report on the implementation of the 2022 plan and on the 2023 draft plan for national economic and social development to the First Session of the 14th National People’s Congress (NPC) for its deliberation and approval. The Commission also invites comments from members of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC).
I. Implementation of the 2022 Plan for National Economic and Social Development
The year 2022 was of great importance in the history of both the Communist Party of China (CPC) and the country. The 20th National Congress of the CPC was successfully convened. The Congress unveiled a grand blueprint for building China into a modern socialist country in all respects, charting the course and establishing a guide to action for continued progress in advancing the cause of the Party and the country on the new journey to achieve the Second Centenary Goal in the new era.
Over the past year, we faced a volatile and complex situation abroad and the challenging tasks of advancing reform and development and ensuring stability at home. Under the firm leadership of the CPC Central Committee with Comrade Xi Jinping at its core, all regions and departments consistently followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implemented the guiding principles from the 19th CPC National Congress and the plenary sessions of the 19th CPC Central Committee, and earnestly studied and implemented the guiding principles from the 20th CPC National Congress. In accordance with the decisions and plans of the CPC Central Committee and the State Council, we faithfully implemented the Report on the Work of the Government and the 2022 plan for national economic and social development, which were approved at the Fifth Session of the 13th NPC, and we adopted the NPC Financial and Economic Affairs Committee’s suggestions based on its review of the 2022 plan.
We remained true to the general principle of pursuing progress while ensuring stability and made sure that the requirements for keeping the epidemic under control, stabilizing the economy, and pursuing safe development were followed. We fully and faithfully applied the new development philosophy on all fronts, worked to create a new pattern of development, and focused on promoting high-quality development. We deepened supply-side structural reform. We gave full consideration to both domestic and international imperatives, coordinated our response to the novel coronavirus disease (Covid-19) with economic and social development, and placed equal emphasis on development and security. We continued to ensure stability on the six key fronts and security in the six key areas, and we strengthened macro regulation. In these ways, we effectively responded to impacts from factors that went beyond our anticipation, ensured steady economic performance, and sustained increases in the quality of development. We achieved substantial progress in scientific and technological innovation, deepened reform and opening up across the board, and made solid progress in building a Beautiful China. Employment and prices were kept basically stable, food and energy security and the people’s wellbeing were effectively guaranteed, and overall economic and social stability were maintained. The 2022 Beijing Winter Olympics and Paralympics were a great success. In short, we took solid steps forward on the new journey to build China into a modern socialist country in all respects.
- We remained committed to putting the people and their lives above all else and achieved a major, decisive victory in our fight against Covid-19.
We adhered to a targeted and science-based approach in our Covid-19 response and improved and adjusted our response policies and measures as the situation evolved. We formulated and put into practice the ninth editions of containment protocols and diagnostic and therapeutic protocols, and we strictly implemented requirements for prohibiting nine types of excessive response. We won the great battle to protect Shanghai, withstanding the most challenging test since the fight to protect Wuhan, and took swift and decisive steps to handle local outbreaks. With these actions, we prevented highly virulent and fatal variants from spreading widely and won precious time for securing victory in the fight against Covid-19.
We made our routine epidemic prevention and control measures and emergency response more precise and effective. We reinforced response measures for key venues including schools, nursing homes, and child welfare institutions and for major events and holidays and enhanced land border areas’ epidemic prevention, control, and treatment capacity. We launched pilot projects for building quarantine and treatment facilities that are capable of operating both under normal conditions and in emergencies and worked to ensure the supply of daily necessities. We made every effort to promote the research, development, and application of vaccines and medicines and guaranteed their production. China’s domestic Covid-19 vaccines and remedies saw new progress in research and development (R&D), and China continued to expand international cooperation in the fight against Covid-19. We put enterprises along key industrial and supply chains on white lists to ensure smooth transportation and logistics and guarantee that key industrial chains are not blocked.
Since November 2022, we have continued to improve and adjust our response measures by focusing on ensuring people’s health and preventing severe cases. We rolled out 20 measures to optimize our Covid-19 response followed by 10 more, improved health services and management for key groups such as seniors, pregnant and lying-in women, and children, and worked faster to help the elderly get vaccinated. We strengthened the production, distribution, and supply of key epidemic supplies and effectively dealt with illegal pricing manipulation for epidemic-related products. We strengthened primary-level medical services, improved the systems for epidemic prevention, control, and treatment, and enhanced our emergency response capacity. We provided effective treatment for more than 200 million diagnosed patients, including close to 800,000 severe cases. These efforts laid a foundation and made it possible for the government to downgrade its response to Covid-19 to “Class B infectious disease, Class B control,” and secure a smooth transition in our response efforts in a relatively short time.
For over three years, China’s fight against Covid-19 has been truly extraordinary. We efficiently coordinated our epidemic response and economic and social development, and we effectively protected the people’s health and safety, thereby minimizing the impact of the epidemic on economic and social development. For a populous country to emerge from a pandemic largely unscathed is a miraculous achievement in the history of human civilization. Practice shows that the CPC Central Committee’s major judgments on the development of the epidemic, its major decisions on response efforts, and its major adjustments to our response strategy have been completely correct. It has taken measures that have proven effective in practice and that enjoy public support, yielding tremendous results.
- We implemented prudent and effective macro policies and maintained overall economic and social stability.
In response to the impacts of repeated resurgence and continued spread of the coronavirus, the outbreak of the Ukraine crisis, and other factors that went beyond our anticipation, we decisively took stronger steps in implementing our macro policies. We promoted sustained economic recovery, with a focus on ensuring stable growth, employment, and prices. China’s gross domestic product (GDP) reached 121 trillion yuan in 2022, representing annual growth of 3%. A total of 12.06 million urban jobs were created nationwide, and the year-end surveyed urban unemployment rate was 5.5%. Overall stability was maintained in prices, with the monthly year-on-year rise in the consumer price index (CPI) kept under 3% and yearly CPI growth at 2%, which stood in stark contrast to the 40-plus-year record high in global inflation. China had a favorable balance of international payments, and its foreign reserves totaled 3.1277 trillion US dollars at the end of 2022.
1) More new approaches were adopted to improve macro regulation.
We introduced a package of policies and follow-up measures in a timely manner to keep economic performance stable, and we strengthened supervision and guidance over local implementation of these policies, thus effectively responding to impacts that went beyond our anticipation.
Our proactive fiscal policy became more effective, with greater emphasis placed on keeping it targeted and sustainable. The government deficit was set at 3.37 trillion yuan, which ensured fiscal spending intensity and maintained the scale necessary to support economic recovery. Local governments issued an additional 3.65 trillion yuan in special-purpose bonds, special-purpose bonds from previous years’ unused inventory worth 502.9 billion yuan were issued and put to good use in accordance with the law, and the issuance and use of special-purpose bonds were accelerated, all of which helped give full play to their positive role in sustaining investment and growth. We put the mechanism for direct allocation of budgetary funds into full use and made government spending more targeted and effective. We made concrete efforts to protect the three priorities of the people’s basic wellbeing, payment of salaries, and normal government functioning at the local level. Transfer payments from the central to local governments totaled 9.71 trillion yuan, an increase of 17.1%, which effectively relieved pressure on city and county governments from decreased revenues and increased expenditures.
Our prudent monetary policy was flexible and appropriate, and ample liquidity was maintained. Required reserve ratios were lowered twice to release long-term liquidity supply. We fully leveraged instruments to support inclusive loans to micro and small enterprises (MSEs) and carbon emissions reduction, facilitated targeted relending for promoting cleaner and more efficient use of coal, and introduced new structural monetary policy tools such as relending for sci-tech innovation and targeted relending for transportation and logistics development and for public-interest elderly care. In doing so, we scaled up support for key areas and weak links in economic and social development. By the end of 2022, the balance of China’s M2 money supply and aggregate financing had increased by 11.8% and 9.6% respectively year-on-year. New RMB loans for the year grew by 1.36 trillion yuan, and medium- and long-term loans to the manufacturing sector increased by 2.56 trillion yuan over the beginning of the year. We took steady steps to make the RMB exchange rate more market-based and kept it generally stable at an adaptive, balanced level.
We strengthened macro policy coordination and took effective steps in assessing consistency of orientation between newly issued policies and documents and macro policies. We also made full use of macro policy coordination mechanisms. All of this markedly improved policy coordination.
2) Greater efforts were made to help ease enterprises’ burdens and resolve their difficulties.
In 2022, newly-introduced tax and fee cuts, tax refunds, and deferred tax and fee payments exceeded 4.2 trillion yuan. Of this, value-added tax (VAT) credit refunds surpassed 2.4 trillion yuan, new tax and fee cuts exceeded 1 trillion yuan, and deferred tax and fee payments totaled over 750 billion yuan. We extended policies to postpone certain tax payments for micro, small, and medium-sized enterprises (MSMEs) and self-employed individuals in manufacturing and to temporarily postpone the collection of certain administrative charges and guarantee funds, among other supporting policies. We introduced targeted measures to provide relief for businesses experiencing particular difficulty in service industries such as catering, retail, tourism, and transportation as well as businesses engaged in elderly care and childcare services. We allowed enterprises in sectors facing difficulties to delay their contributions to social insurance schemes.
We worked to ensure continuity and renewal of loans under the former two instruments to support deferred payments on inclusive loans of MSEs and to support inclusive credit loans to MSEs. In addition, we raised the ratio of government funding for new loans issued through the instrument to support inclusive loans to MSEs from 1% to 2% and reduced the interest rate of inclusive loans to MSEs by one percentage point for the fourth quarter of the year.
To better ensure basic standards of living for those in need, we temporarily extended the coverage of subsistence allowances and other social security policies, and we adjusted the mechanism tying social assistance and benefit payments to increases in the price of goods by appropriately lowering the threshold for the mechanism to kick in, in order to include more low-income earners.
3) Stronger steps were taken to guarantee the supply and price stability of major commodities.
We worked to ensure that price regulation mechanisms for essential commodities were effectively implemented. We strengthened coordination of production, transportation, and sales, improved adjustments to imports and exports and commodity reserves, enhanced guidance over market expectations, and ensured that market prices remained stable. We continued to employ the minimum purchase price policy for grains as an effective means to ensure reasonable grain prices, and we appropriately raised the minimum purchase prices for rice and wheat, thus keeping grain production stable. We put more responsibility on city mayors to ensure the supply of non-staple foods and strengthened regulation over the hog market to cope with sharp fluctuations in hog and pork prices. Activities related to price indexes were standardized, and coordinated oversight over spot markets and futures markets was markedly improved. We created long-term mechanisms for coal price regulation and oversight, kept coal prices within an appropriate range, actively responded to the sharp rise in international oil and gas prices, and guaranteed stable supply and prices for household electricity and gas.
- We firmly implemented the strategy to expand domestic demand and consistently unlocked the potential of domestic demand.
We thoroughly and effectively implemented the “1+N” policy framework for fostering a new development pattern. We formulated and implemented an outline for the strategy to expand domestic demand for 2022 through 2035 and an implementation plan for the strategy to expand domestic demand during the 14th Five-Year Plan period. Focusing on expanding investment and stabilizing consumption in key areas, we further unlocked the potential of domestic demand and promoted smoother flows in the economy.
1) Investment fully played its key role in driving development.
We established a coordination mechanism for advancing major projects to promote effective investment and ran it efficiently to strengthen support in terms of land provision, environmental impact assessments, energy, and other factors and to improve coordination on major issues. We made sure that investment funds and other production factors stayed connected to projects they were allocated to and sped up implementation of key tasks and construction on major projects, in an effort to see real work begin on more of these projects. We created new policy and development finance instruments and issued 740 billion yuan in two batches to replenish the capital for more than 2,700 major projects, all of which have since broken ground. We supported equipment upgrades in key areas by providing targeted relending and interest subsidies and encouraged more medium- and long-term lending to the manufacturing sector.
We made proactive investments in infrastructure as appropriate, advanced construction on the 102 major projects outlined in the 14th Five-Year Plan, and accelerated planning for new types of infrastructure. Full-scale construction on the Chengdu-Lhasa Railway got off to a good start; Baihetan Hydropower Station, ranking second in the world in terms of installed capacity, came into full production; and the ultra-high voltage direct-current transmission project from Baihetan to Jiangsu and Zhejiang provinces began operation. Construction began on the North Xiaoyangshan Container Terminal (land area), the Pinglu Canal project, and the Yangtze River to Han River diversion project along the central route of the South-to-North Water Diversion Project.
We gave play to the catalytic role of investment from the central government budget. We accelerated the issuance and use of local government special-purpose bonds and further widened their scope of usage. We encouraged and channeled private capital toward restarting suspended projects and initiating new ones, and promoted positive interplay between idle assets and new investment. A total of 24 pilot projects on real estate investment trusts (REITs) in the infrastructure sector have gone public, with a total issuance volume of over 78 billion yuan.
We advanced the renovation of old urban residential communities nationwide, leading to the launch of renovations to 52,500 such communities last year. We worked faster to make up deficiencies in urban infrastructure and actively advanced the upgrading of old urban gas pipelines and other facilities. National fixed-asset investment (excluding rural households) totaled 57.21 trillion yuan, an increase of 5.1% over the previous year. Of this amount, investment in infrastructure and manufacturing rose by 9.4% and 9.1% respectively, partly making up for the losses caused by shrinking consumption.
2) Efforts were made to promote the gradual recovery of consumer spending.
We improved our policy system for boosting consumption, formulated and released guidelines on further unleashing consumption potential to promote sustained consumption recovery, and unlocked consumption potential through combined measures.
We temporarily halved the purchase tax on eligible passenger vehicles and extended the policy of purchase tax exemption for new-energy vehicles (NEVs). To vigorously develop green consumption, we introduced an implementation plan for boosting green consumption, designed corresponding mechanisms and policy systems, and encouraged the purchase and use of NEVs, green and smart home appliances, and green building materials in rural areas. We effectively tapped consumption potential for big-ticket items such as automobiles and home appliances. In 2022, 6.887 million NEVs were sold, representing a 93.4% year-on-year increase. The market penetration rate of NEVs reached 25.6%, and China ranked first in the world for the eighth consecutive year in terms of NEV output and sales.
We integrated online and offline consumption, promoted online consumer spending, and saw that contact-intensive sectors such as catering and hospitality, transportation, and culture and tourism were gradually restored. We supported the development of county-level commercial systems and supply chains for farm produce. Retail sales of consumer goods totaled 43.97 trillion yuan last year, including 13.79 trillion yuan in online sales.
3) Smoother flows in the economy were ensured.
We formulated and implemented a plan for developing modern logistics during the 14th Five-Year Plan period to coordinate the development of national logistics hubs, key national cold-chain logistics bases, and national demonstration logistics parks. We facilitated deep integration of logistics and manufacturing and accelerated the development of a modern distribution network underpinned by key cities and major transportation corridors. We made greater efforts to strengthen integrated national freight hubs, and we sped up the construction of a number of such hubs and major projects in collection, distribution, and transportation systems. We optimized the infrastructure layout for goods distribution and did a better job connecting market facilities. A leading group for ensuring smooth logistics under the State Council was established to promote unimpeded transportation and logistics, thus guaranteeing the supply of daily necessities and production materials as well as the smooth operation of industrial and supply chains.