Politburo Discusses Economic Priorities - Xi Congratulates Maduro
Hi folks,
My apologies for missing out on the past couple of days. It’s the flu season (again!) in Bengaluru. And that means that my home has been resonating with the melody of stuffy noses and persistent cough for the past few days.
I’ve managed to get back to my desk today for a while. So, I am going to take it easy and do a brief edition, only covering the key front page reports.
Hopefully, I should be back to normal clip tomorrow onward.
Cheers,
Manoj
The lead story today is about the Politburo meeting for the month. This one discussed the economic situation and set out priorities for the second half of this year. The meeting said that the “country’s economy has been generally stable and made progress since the start of this year.” “New growth drivers and advantages have been cultivated at a faster pace, high-quality development has been solidly advanced, and overall social stability has been maintained. 会议认为，今年以来，在以习近平同志为核心的党中央坚强领导下，各地区各部门迎难而上、积极作为，深化改革开放，加强宏观调控，有效应对风险挑战，经济运行总体平稳、稳中有进，延续回升向好态势，新动能新优势加快培育，高质量发展扎实推进，社会大局保持稳定.
“The meeting pointed out that the adverse effects brought about by changes in the external environment are increasing. Domestic effective demand is insufficient. Economic performance is showing divergence (in terms of different sectors). There are still various risks and potential dangers in major sectors, as well as challenges resulting from the replacement of traditional growth drivers with new ones. These are all issues in the course of development and transformation. We must enhance risk awareness and bottom-line thinking, respond proactively and actively, maintain strategic determination, strengthen confidence in development, and promote a positive outlook/confidence with regard to China’s economy.” 会议指出，当前外部环境变化带来的不利影响增多，国内有效需求不足，经济运行出现分化，重点领域风险隐患仍然较多，新旧动能转换存在阵痛。这些是发展中、转型中的问题，我们既要增强风险意识和底线思维，积极主动应对，又要保持战略定力，坚定发展信心，唱响中国经济光明论.
It then said that the tasks of reform, development and stability for the second half of the year are arduous and called to resolutely “achieve economic and social development goals.” More specifically, the readout says:
“The meeting stressed the need to use reform as a driving force to promote stable growth, adjust the structure and guard against risks. Fully leverage the leading role of economic restructuring, and launch a batch of mature and tangible reform measures in a timely manner. It is necessary to uphold and implement the ‘two unswerving’ principle, promote the complementary advantages and common development of entities of various forms of ownership, improve the basic system of market economy such as property rights protection, market access and bankruptcy exit, and prevent and correct the use of administrative and criminal means to interfere in economic disputes in some regions. It is necessary to promote entrepreneurship and accelerate the development of more world-class enterprises through reform, innovation and fair competition.” 会议强调，要以改革为动力促进稳增长、调结构、防风险，充分发挥经济体制改革的牵引作用，及时推出一批条件成熟、可感可及的改革举措。要坚持和落实“两个毫不动摇”，促进各种所有制经济优势互补、共同发展，完善产权保护、市场准入、破产退出等市场经济基础制度，防止和纠正一些地方利用行政、刑事手段干预经济纠纷。要弘扬企业家精神，在改革创新和公平竞争中加快建设更多世界一流企业.
The meeting called for more effective macroeconomic policies. It says:
“It is necessary to strengthen counter-cyclical adjustments, implement a proactive fiscal policy and a prudent monetary policy, accelerate the comprehensive implementation of established policy measures, and prepare and launch a batch of incremental policy measures in a timely manner. It is necessary to accelerate the issuance and use of special bonds, make good use of ultra-long-term special bonds, support the construction of national security capacity in regard to major strategies and key areas, and make greater efforts to promote large-scale equipment renewal and trade-in of large-scale durable consumer goods. It is necessary to optimize the structure of fiscal expenditure and ensure the bottom line of ‘three guarantees’. It is necessary to comprehensively use a variety of monetary policy tools, increase financial support for the real economy, and promote the steady decline of social comprehensive financing costs. The RMB exchange rate should be kept basically stable at a reasonable and balanced level. The consistency of macroeconomic policy orientation should be effectively enhanced to form a powerful joint force from all aspects to promote high-quality development. Major economic provinces should continue to play a leading role.” 会议指出，宏观政策要持续用力、更加给力。要加强逆周期调节，实施好积极的财政政策和稳健的货币政策，加快全面落实已确定的政策举措，及早储备并适时推出一批增量政策举措。要加快专项债发行使用进度，用好超长期特别国债，支持国家重大战略和重点领域安全能力建设，更大力度推动大规模设备更新和大宗耐用消费品以旧换新。要优化财政支出结构，兜牢“三保”底线。要综合运用多种货币政策工具，加大金融对实体经济的支持力度，促进社会综合融资成本稳中有降。要保持人民币汇率在合理均衡水平上的基本稳定。要切实增强宏观政策取向一致性，形成各方面共同推动高质量发展的强大合力。要继续发挥好经济大省挑大梁作用.
“The meeting emphasized the need to expand domestic demand with a focus on boosting consumption. The focus of economic policies should shift more towards benefiting people’s livelihoods and promoting consumption. It is necessary to increase residents’ income through multiple channels, boost the consumption capacity and willingness of low- and middle-income groups, take service consumption as an important starting point for expanding and upgrading consumption, and support consumption in culture, tourism, elderly care, childcare and household services. It is necessary to further mobilize the enthusiasm of private investment and expand effective investment.” 会议强调，要以提振消费为重点扩大国内需求，经济政策的着力点要更多转向惠民生、促消费，要多渠道增加居民收入，增强中低收入群体的消费能力和意愿，把服务消费作为消费扩容升级的重要抓手，支持文旅、养老、育幼、家政等消费。要进一步调动民间投资积极性，扩大有效投资.
“The meeting pointed out that emerging industries and future industries should be cultivated and strengthened. It is necessary to vigorously promote high-level scientific and technological self-reliance, strengthen key core technology research, and promote the transformation and upgrading of traditional industries. It is necessary to ensure strong and effective support for gazelle enterprises and unicorn enterprises. It is necessary to strengthen industry self-discipline and prevent ‘involution-style’ vicious competition. The market mechanism of ‘survival of the fittest’ should be strengthened and exit channels for backward or inefficient production capacities should remain unclogged.” 会议指出，要培育壮大新兴产业和未来产业。要大力推进高水平科技自立自强，加强关键核心技术攻关，推动传统产业转型升级。要有力有效支持发展瞪羚企业、独角兽企业。要强化行业自律，防止“内卷式”恶性竞争。强化市场优胜劣汰机制，畅通落后低效产能退出渠道.
“The meeting pointed out that high-level opening-up must be promoted, and a first-class business environment that is market-oriented, law-based, and internationalized must be further created. Institutional opening-up must be steadily expanded, and the ‘zero’ restrictions goal for foreign investment in the manufacturing sector must be implemented. It is necessary to launch new pilot measures for expanding opening-up in the service sector, and efforts must be made to stabilize and improve the utilization of foreign investment. New growth drivers for foreign trade development must be actively cultivated, and intermediate goods trade and green trade must be expanded. The high-quality joint construction of BRI must be steadily advanced.” 会议指出，要推进高水平对外开放，进一步营造市场化、法治化、国际化一流营商环境，稳步扩大制度型开放，落实制造业领域外资准入限制措施“清零”要求，推出新一轮服务业扩大开放试点举措，促进利用外资企稳回升。要积极培育外贸发展新动能，拓展中间品贸易、绿色贸易。要扎实推进高质量共建“一带一路”.
Next on risks, the report says:
“It is necessary to implement the new policies to promote the stable and healthy development of the real estate market, adhere to the combination of digesting the stock and optimising new increments. The acquisition of existing commercial housing for use as affordable housing must be actively supported. Efforts to ensure the delivery of housing must be further strengthened. And it is necessary to accelerate the construction of a new model of real estate development. It is necessary to improve and implement comprehensive local debt resolution plans, and create conditions to accelerate the resolution of debt risks associated with local financing platforms. We must coordinate risk prevention, strengthen supervision, and promote development, boost investor confidence, and enhance the inherent stability of the capital market.” 会议强调，要持续防范化解重点领域风险。要落实好促进房地产市场平稳健康发展的新政策，坚持消化存量和优化增量相结合，积极支持收购存量商品房用作保障性住房，进一步做好保交房工作，加快构建房地产发展新模式。要完善和落实地方一揽子化债方案，创造条件加快化解地方融资平台债务风险。要统筹防风险、强监管、促发展，提振投资者信心，提升资本市场内在稳定性.
The report then mentions goals like:
Rural revitalisation and ensuring that the gains of poverty alleviation are not lost
Strengthening the protection and quality improvement of cultivated land and ensuring a bumper harvest
Strengthening of employment-first policy to ensure employment for key groups such as college graduates
Strengthening of assistance and support for low-income populations
All efforts should be made to prevent and control floods and provide disaster relief, ensure energy and power supply during the peak summer period, ensure production safety, and seriously address issues such as food safety and public security.
Fight a tough battle against pollution and steadily advance the goals of carbon peak and carbon neutrality.
Do a good job in the preliminary research and planning regarding the 15th Five-Year Plan.
The final two paragraphs stress on addressing formalism and bureaucracy, along with the importance of effective implementation. This is in the context of the Regulations on Rectifying Formalism to Reduce the Burden on Grassroots Units, which was reviewed at the meeting.
The other lead story on the page is about a symposium held on July 26 with non-CPC personages to seek opinions and suggestions on the country’s current economic situation and economic work for the second half of the year. Li Qiang briefed the symposium on the economic work in the first half of the year and considerations about the economic work for the second half. Leaders of eight non-CPC parties, the head of the All-China Federation of Industry and Commerce, and a representative of personages without party affiliation made remarks at the meeting. The report says:
They fully agreed with the CPC Central Committee’s analysis and assessment of the current economic situation and its planning and considerations for economic work in the second half of the year, and put forward opinions and suggestions on:
further comprehensively deepening reform
promoting high-level opening up
consolidating the industrial and technological foundation of new quality productive forces
deepening science and technology system reform
promoting natural resource management reform
coordinating the planning of the biomanufacturing industry development,
supporting the transformation and upgrading of Taiwan-funded electronic information industries on the mainland
stabilising jobs and expanding employment for young people
increasing the intensity of consumption promotion policies
supporting the healthy development of enterprises and the real estate industry
further boosting confidence in the development of the private economy
他们完全赞同中共中央对当前经济形势的分析判断和下半年经济工作的谋划考虑，并就进一步全面深化改革、推进高水平对外开放、夯实新质生产力的产业和技术根基、深化科技体制改革、推进自然资源管理改革、统筹规划生物制造产业发展、支持大陆台资电子信息产业转型升级、稳岗和扩大年轻人就业、加大促消费政策力度、助力企业和房地产业健康发展、进一步提振民营经济发展信心等提出意见和建议.
After listening to all of them, Xi spoke. He said that in the first half of the year, “in the face of complex and ever-changing domestic and international situation, we withstood pressure, took proactive actions, strengthened macroeconomic regulation, deepened reform and opening-up, effectively responded to risks and challenges, and the economy continued its upward and positive trend, making new strides in high-quality development.” 他表示，今年上半年，在中共中央坚强领导下，面对复杂多变的国内外形势，我们顶住压力、积极作为，加强宏观调控，深化改革开放，有效应对风险挑战，经济延续了回升向好态势，高质量发展又迈出新的步伐.
Xi said that the current difficulties and problems encountered in China’s economic development are those that are encountered in the course of development and transformation. These can be fully overcome through efforts. We must strengthen our confidence in development, maintain strategic determination, actively respond to problems and challenges, and promote a positive outlook/confidence with regard to China’s economy through tangible high-quality development outcomes. 习近平强调，当前我国经济发展遇到一些困难和问题，是发展中、转型中的问题，经过努力是完全可以克服的。我们要坚定发展信心，保持战略定力，积极主动应对问题和挑战，用实实在在的高质量发展成效唱响中国经济光明论.
He then thanked the non-CPC parties and non-Party personages for their support and work. And then he expressed three hopes for them.
First, thoroughly study and implement the spirit of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, guide the broad masses of members and the people they contact to profoundly grasp the great significance, major principles and significant measures of further comprehensively deepening reform, and transform the the decisions and deployments of the CPC Central Committee into the collective will and conscious actions of all sectors of society.
Second, continue to consolidate the common ideological and political foundation of the United Front, truly align thoughts and understanding with the CPC Central Committee's analysis and assessment of the economic situation, adopt the correct perspective on the situation and the problems that are encountered during reform and development, and to work together to overcome various risks and challenges.
Third, continue to contribute to the realisation of economic and social development goals, carry out in-depth research around the implementation of major reform measures proposed by the Third Plenum, major issues in economic and social development, and the preliminary research and planning work of the ‘15th Five-Year Plan’, and provide reference for the CPC Central Committee’s scientific decision-making.
习近平对各民主党派、全国工商联和无党派人士提出3点希望。一是深入学习贯彻中共二十届三中全会精神，引导广大成员和所联系群众深刻把握进一步全面深化改革的重大意义、重大原则和重大举措，把中共中央决策部署转化为社会各界的共同意志和自觉行动。二是持续巩固统一战线的共同思想政治基础，切实把思想认识统一到中共中央关于经济形势的分析判断上来，正确看待形势和改革发展中的问题，合力战胜前进中的各种风险挑战。三是继续为实现经济社会发展目标献计出力，围绕落实中共二十届三中全会提出的重大改革举措、经济社会发展中的重大问题以及“十五五”规划前期研究谋划工作等，深入开展调研，为中共中央科学决策提供参考.
Finally, there’s a report on Xi congratulating Nicolas Maduro “on his re-election as President” of Venezuela. Xi told Maduro that “China will, as always, firmly support Venezuela's efforts to safeguard national sovereignty, national dignity and social stability, and firmly support Venezuela's just cause of opposing external interference”.
This is an interesting decision by Beijing, because it comes at a time when there are protests in the country related to the election. Reuters reports that:
“Protesters took to the streets across Venezuela on Tuesday, demanding that President Nicolas Maduro acknowledge he lost Sunday's election to the opposition, as a major international observer concluded the vote was undemocratic. The protests, which the government denounced as an attempted ‘coup’, began on Monday after the South American country's electoral authority declared that Maduro had won a third term with 51% of votes to extend a quarter-century of socialist rule. The opposition, which considers the election body to be in the pocket of a dictatorial government, says its candidate Edmundo Gonzalez had more than twice as many votes as Maduro based on the 90% of vote tallies it has been able to access. At least 11 people have been killed in different parts of the country since the election in incidents related to the count or associated protests, according to rights group Foro Pena”.
Another report informs that “Brazilian President Luiz Inacio Lula da Silva and U.S. President Joe Biden said on Tuesday they agreed the Venezuelan government must quickly publish the vote tallies of Sunday's contested election…A Brazilian official who listened in to the 30-minute call requested by the White House said Lula insisted that both countries wait for the release of the tallies before taking a final position on the election.