Original Title: Big Coffee Hotly Discussing Government Work Report: Economic Growth Targets Meet Expectations, Foreign-funded Enterprises Firmly Rooted in China
Reporting by Zhu Lina Shishi from Hong Kong and Shanghai of the National Two Sessions Reporting Group of China Southern Finance All Media Group
Premier Li Keqiang of the State Council delivered a government work report at the Fourth Session of the Thirteenth National People’s Congress on March 5. Li Keqiang pointed out in the government work report that my country’s development this year still faces many risks and challenges, but the fundamentals of the long-term economic improvement have not changed. The economic growth rate is a comprehensive indicator. The expected target for this year is set at more than 6%. Taking into account the recovery of economic operations, it is conducive to guiding all parties to focus on promoting reform and innovation and promoting high-quality development.
Ji Chunhua, a macro strategy analyst at China-Thailand International, told the 21st Century Business Herald that the government work report has set the target for this year’s economic growth rate to be above 6%. “It is more conservative than market expectations, and it should be more out of desalination of the growth rate. Consider, consistent with the shift to more qualitative growth.”
Martin Petch, vice president and senior credit rating director of Moody’s Investor Services, pointed out that Premier Li Keqiang outlined the main economic and policy goals for this year and during the “14th Five-Year Plan” period. “The 2021 GDP growth target is in line with our expectations, indicating that the economy will continue to recover from the impact of the epidemic. The government has retained the lower limit of the growth target, indicating that economic growth will still be one of the important factors affecting China‘s economic policy formulation. The specific scope of not setting targets also means that the policy focus will be more focused on other targets and promote the development of key strategic industries in accordance with the “double cycle” theory.”
Song Weiqun, senior vice president of Johnson & Johnson and chairman of the China region, told the 21st Century Business Herald reporter: “2020 is an extraordinary year. The government work report fully demonstrates the extraordinary achievements of China’s economy and demonstrates China’s unity Strength, determination and spirit to move forward through the waves. For this, we praise the Chinese government and the Chinese people.”
Economic growth rate and fiscal deficit rate
Ji Chunhua said frankly: “Under the background of shifting China‘s economic growth rate, even if there is a relatively high economic growth rate this year, the economic growth rate after this year will return to normal. In order to maintain the continuity and stability of economic growth, this year Nor should there be an overly high, unsustainable goal.”
At the same time, Ji Chunhua believes that the monetary policy will continue to be maintained without a sharp turn, and the necessary support will be maintained. In recent years, China‘s economic trend has been stable, and there is less need for a wide-ranging monetary policy to adjust, increasing unnecessary fluctuations and expected changes. It is more about controlling the total valve, coordinating with the transformation of China’s economic structure, and conducting pre-adjustment and fine-tuning. “Under the current economic environment where the domestic economy is still recovering, the monetary policy will not be tightened quickly. However, in the current international environment, It is not appropriate to adopt a loose monetary policy for a long time, and it is also detrimental to the reform of capital account opening and the internationalization of the renminbi in the medium and long term. Therefore, we expect that in 2021, the monetary policy will be steadily withdrawn with moderate tension.”
Another topic that Ji Chunhua pays attention to is the return of the fiscal deficit rate to a normal level. He pointed out that in 2020, due to the decline in fiscal revenue due to the epidemic, the fiscal deficit rate rose to 3.6%. Due to the 1 trillion yuan anti-epidemic special treasury bonds and the issuance of 2.6 trillion yuan of new local government special bonds, the general deficit rate rose to 8.2%. “As the economy gradually returns to the right track in 2021, the anti-epidemic special treasury bonds will no longer be issued. The fiscal deficit ratio returned to 3.2%, slightly higher than expected. The macro leverage ratio is currently around 270%, which is at a historically high level. However, as the economy recovers, the macro leverage ratio can also remain stable.”
Martin Petch pointed out that the gradual normalization of macroeconomic policies is partly reflected in the fiscal deficit expectations and the slight decline in the amount of special debt, and it also highlights the challenges faced by decision-making agencies in controlling financial risks while the economy is recovering. At the same time, the policy focus has shifted to emphasizing further reducing income imbalances and improving the quality of growth by reducing environmental impacts, which means increased government investment and fiscal costs.
Tax cuts and fee reductions are “awesome”
Wu Jiayuan, member of the Northern China Committee of the Australian Institute of Certified Public Accountants, is very concerned about the tax and fee reductions for small-scale taxpayers and small and micro enterprises in the government work report. He pointed out to the 21st Century Business Herald reporter: “The government work report proposed to implement new structural tax reduction measures to hedge the impact of some policy adjustments. It should be said that my country’s response to the uncertain risks of the global economy and the next epidemic prevention Under the current situation of normalization of control, the flexible and targeted response is also a forward-looking deployment in the face of the future, in the face of global uncertainty and risk prevention, which has led to my country’s tax cuts and reductions regarding the epidemic. Expense measures have the possibility and space to adjust in the future according to current conditions.”
In his view, in this government work report, the policy of tax reduction and fee reduction once again settled on small-scale taxpayers and small and micro enterprises. “We believe that the above policies reflect the implementation of the decisions and deployments of the Party Central Committee and the State Council, and further support The development of small and micro enterprises has continued to implement the main thrust of the tax reduction policy, which has continued the state’s attention and preference to small and micro players in the market.”
He said frankly that from the statement of the government work report, this tax cut and fee reduction has further increased the value-added tax threshold for small-scale taxpayers, from 30,000 per month in 2018 to 100,000 per month in 2019. To this year’s 150,000, the increase can be said to be very “great”; “In addition, for small and micro enterprises and individual industrial and commercial households whose annual taxable income is less than 1 million yuan, the tax will be halved on the basis of the current preferential policies. It can be said that the income tax has further increased the incentives and broadened the scope of beneficiaries. It is believed that the implementation of these policies will not only help small and micro enterprises continue to reduce their burdens, but should also stimulate and promote the growth of small and micro enterprises in the market. Economic vitality plays a more positive role.”
Inject strong impetus into foreign companies
Song Weiqun, senior vice president of Johnson & Johnson and chairman of the China region, told the 21st Century Business Herald that in this unprecedented epidemic and economic test, the Chinese economy has shown strong resilience and huge development opportunities with “green hills always present and full of vitality”. , Which provides important confidence and strong motivation for foreign-funded enterprises, including Johnson & Johnson, to continue to cultivate and develop in China.
“We are very pleased to see that many of China’s achievements in promoting technological innovation are mentioned in the government work report. As a global healthcare leader with innovation as its core competitiveness, Johnson & Johnson will continue to play a leading role in the industry. The unique “innovation + development” dual engine helps build a healthy China and seize new opportunities under the new normal.” Song Weiqun said.
As the first batch of multinational medical and health companies to enter China after the reform and opening up, Johnson & Johnson has entered China for 36 years. The Chinese market has already become one of Johnson & Johnson’s fastest-growing markets in the world, and it is also a strategic key market driven by Johnson & Johnson’s global “innovation + development” dual engine. .
Song Weiqun revealed that in 2020, thanks to the rapid and efficient prevention and control of the epidemic in the Chinese market and the good momentum of economic recovery, Johnson & Johnson China‘s three major business sectors have achieved positive development. Among them, the medical equipment business achieved double-digit growth in the second and third quarters of 2020, and its contribution to the global business reached double-digits, boosting China‘s position in Johnson & Johnson’s global business map. “Johnson & Johnson is very confident of achieving high-speed and high-quality development driven by innovation in China for a long time,” he said.
Chen Yudong, a senior executive of another multinational company and the president of Bosch China, was delighted to see that the Chinese government had proposed a carbon peak goal and a carbon neutral vision. He told the 21st Century Business Herald reporter: “This will inject new impetus into China’s green development. It is hoped that action plans for various industries will be released as soon as possible to give companies a clear direction to deploy low-carbon development strategies. As the world’s first company in 2020, Bosch Industrial enterprises that have achieved carbon neutrality in the year are also willing to share their experience to support industry partners in moving toward their goals.”
He said that the “14th Five-Year Plan” is a critical year for accelerating the development of intelligent networked vehicles. He hopes that the government can continue to build intelligent infrastructure and integrate 5G and other communication network technologies to accelerate the development of vehicle-road coordination and improve road safety. And efficiency. Innovative development in the field of intelligent manufacturing is also the key to the development of China‘s manufacturing industry during the “14th Five-Year Plan” period. It is hoped that the government can fully mobilize the innovation resources of enterprises, promote the improvement of supporting facilities, and support the formation of large-scale high-end manufacturing industrial clusters in various places.
Delegates from the port district hotly discuss improving Hong Kong’s electoral system
Regarding Hong Kong and Macao affairs, Premier Li Keqiang emphasized in his government work report that “We must continue to comprehensively and accurately implement the principles of’one country, two systems’,’Hong Kong people ruling Hong Kong’,’Macao people ruling Macao’, and a high degree of autonomy, and improve the special administrative regions’ systems related to the implementation of the Constitution and the Basic Law. We will implement the special administrative region’s legal system and implementation mechanism for safeguarding national security. Resolutely prevent and contain external forces from interfering in Hong Kong and Macao affairs, support Hong Kong and Macao in developing their economy, improving people’s livelihood, and maintaining the long-term prosperity and stability of Hong Kong and Macao.”
The Fourth Session of the Thirteenth National People’s Congress will review the “Decision of the National People’s Congress on Improving the Hong Kong Special Administrative Region’s Electoral System (Draft).” Tung Chee-hwa, vice chairman of the National Committee of the Chinese People’s Political Consultative Conference, stated on March 5 that this year’s National Two Sessions agenda is of special significance for promoting the long-term development of the country and Hong Kong.
Tung Jianhua pointed out that from the perspective of national governance, the “14th Five-Year Plan” and the draft outline of the “2035 Long-Term Goals” are the central government’s foresighted strategic layout under the new situation. It is not only related to the future well-being of the 1.4 billion Chinese people, but also It will bring huge development opportunities to the world economy!
Tung Chee-hwa said frankly that Hong Kong has reached a critical moment where reforms will not work. It is the core of “One Country, Two Systems” that patriots hold important public positions, and it is also a universally recognized political ethic. “I believe that the vast majority of Hong Kong citizens want to see patriots who love Hong Kong govern Hong Kong, adhere to the foundation of’one country’, make good use of the benefits of’two systems’, and strive to solve various social, economic, and livelihood issues. Actively integrate into the overall situation of the country’s development, complement each other’s advantages and develop in coordination, and jointly create a harmonious, stable and prosperous social environment, so that Hong Kong citizens can live and work in peace!”
Gu Minkang, director of the National Society for Hong Kong and Macau Studies, told the 21st Century Business Herald that improving the electoral system is the fundamental requirement for the implementation of “patriots ruling Hong Kong”. The key is to maintain the “three gates”: pre-qualification, oath, and disqualification. , Not let public power fall into the hands of anti-China chaos in Hong Kong and separatists. Only when Hong Kong’s political ecology is improved can “one country, two systems” and a high degree of autonomy be stable and far-reaching, and “two systems” can have room for development.
Gu Minkang suggested that a qualification review committee composed of patriots should be established. The committee will work with the assistance of the Hong Kong National Security Agency and the National Security Department of the Police Force, specifically responsible for candidates for the Legislative Council, District Councils, and Chief Executive Election Committee. Evaluation can make a more fair and reasonable determination based on a unified positive and negative list. In particular, it is necessary to prevent some candidates who speak patriotic but behave like “Hong Kong independence” from being confused.
According to Cai Guanshen, member of the Standing Committee of the Chinese People’s Political Consultative Conference and chairman of the Hong Kong Xinhua Group, a series of incidents in Hong Kong in recent years reflect the need to strengthen the education of Hong Kong’s youth on the Constitution and the Basic Law. At the same time, it is necessary to strengthen the education of Hong Kong’s youth on national conditions, Chinese history and Chinese culture Education, establish national identity.
The integration of Hong Kong and Macau into the overall situation of national development has continued to accelerate in recent years. As the chairman of the Guangdong-Hong Kong-Macao Greater Bay Area Entrepreneurs Alliance, Cai Guanshen emphasized that the Greater Bay Area is a fertile ground for patriotic education, which helps Hong Kong young people understand the history of the Chinese nation in modern times, especially the glorious course of reform and opening up for more than 40 years.
Guangdong is at the forefront of reform, opening up and modernization. “Understanding the Guangdong-Hong Kong-Macao Greater Bay Area can enable Hong Kong youths to understand the country’s overall direction and their own development prospects. At the same time, when conducting education for patriots in governing Hong Kong and national conditions, we must serve Hong Kong and Macau youths. To develop more platforms to help them solve the practical difficulties and problems encountered in school, employment, entrepreneurship, etc., and create a social environment conducive to Hong Kong youths to achieve their life dreams, build Hong Kong, and integrate into the overall development of the country.” Cai Guanshen told the 21st Century Economy Reporter said.
(Author: Zhu Lina; Shi poetry editor: Yanxia)