(Yicai Global) May 21 -- The curtain will rise on the Third Session of the 13th Session of the Chinese People's Political Consultative Conference and the Third Session of the 13th National People's Congress -- better known as the Two Sessions, China's most important annual political meetings -- in Beijing this afternoon and tomorrow, respectively.

Macroeconomic indicators plummeted in the first-quarter, downward economic downward pressure was great, the pandemic is continuing its global spread, uncertainties are rising, and China ’s economic and social development confront new difficulties and challenges, Guo Weimin, spokesman for the CPPCC meeting, said at a news conference yesterday.

Faced with these unprecedented shocks, China has issued a raft of policy measures to increase counter-cyclical adjustments in a targeted manner to help small and medium enterprises dig out, Guo said. Experts also offered suggestions and recommendations on the next phase of China's economic development.

Stabilizing employment will be the focus of livelihood issues at the Two Sessions this year, said Hu Angang, a professor at Beijing's prestigious Tsinghua University and dean of its National Conditions Research Institute. Great progress has come in the fight against the epidemic in China, so the priorities of future work are to pick up the pace of economic recovery, resume work and production as soon as possible, provide stable jobs, and help firms, micro, small and medium ones in particular, relying on targeted and effective policies, he urged.

A series of surcharges on housing provident funds, urban construction, and education should be eliminated to ease the burden on enterprises, suggests a proposal to help bail out companies submitted by Zhang Lianqi, Standing Committee Member of the CPPCC National Committee and an expert in finance and taxation. Because the Covid-19 slams the income of residents and sparks price rises, temporary subsidies should be issued in a timely manner and public welfare positions should be provided to the needy. Only if residents have income is there consumption, he stressed.

Advancing deepening reforms will be one of the core themes of the Two Sessions this year, said Cheng Shi, chief economist with Hong Kong-based financial service provider ICBC International. This will mainly include three areas: land reform, accelerated financial reform and digital economic development, he added.

China's cabinet the State Council came out with a new round of economic system reform guidelines on May 18 encompassing nine major sections and covering state-owned enterprise reform, fiscal and tax reform to factor market reform, and improving the public health emergency management system.

This directive shows the government's firm determination to usher in a new round of reforms. The measures aimed at state-owned enterprises, monopoly industries and other important areas seek to drive reform in key areas with breakthroughs in mechanism innovation, Pan Helin, executive dean of the Digital Economic Research Institute of Wuhan's Zhongnan University of Economics and Law, told Yicai Global.

China's overall economic and social development remains stable, thus amply demonstrating the Chinese economy's ultra-large scale advantage, strong resilience, huge potential and room to maneuver when confronted by a complex and grim situation, Guo said.

Editor: Ben Armour