(Yicai) March 4 -- Despite lingering old problems and new challenges, the fundamentals supporting China’s long-term economic growth remain unchanged, a senior official said yesterday at a press conference during the ‘Two Sessions,’ the country’s annual policy setting meetings.

The Chinese economy still has a solid foundation, many advantages, strong resilience and huge potential, said Liu Jieyi, deputy secretary-general of the fourth session of the 14th National Committee of the Chinese People’s Political Consultative Conference, which is the country’s top political advisory body.

Technology and industries are deeply integrated, innovation is accelerating and new quality productive forces are growing rapidly, Liu said at the annual session of the CPPCC, which runs from today until March 11.

During the recent nine-day Lunar New Year holiday, restaurants, entertainment venues and shopping malls were packed. Domestic tourism spending surged 18.6 percent from a year ago to CNY803.4 billion (USD116.54 billion), highlighting the vitality of China’s massive consumer market.

Meanwhile, total cross-regional passenger trips during the Spring Festival travel rush, known as Chunyun, is expected to reach 9.5 billion, which is equivalent to every person in the world taking more than one trip, showcasing the energy of a highly mobile China.

The private sector remains a hot topic among CPPCC members this year. Resilience and drive are the defining traits of the private economy, Qi Xiangdong, vice-chairman of the All-China Federation of Industry and Commerce, told Yicai. A study shows that private firms are determined to pursue high-quality development, although they still face some widely shared practical challenges.

Efforts should be made to enhance policy effectiveness to support firms in their long-term planning, said Qi, who is also chairman of cybersecurity company Qi An Xin Technology Group. Firstly, authorities should strengthen the monitoring and analysis of private companies’ concerns through systematic planning and implement and adjust policies dynamically. Secondly, more functional and inclusive policies should be introduced, such as hiking subsidies for public service platforms, so that firms that focus on research and development as well as digital transformation and can better access and afford pilot platforms.

The continuous improvement of the business environment is crucial for private sector growth, said Nie Lei, vice chairperson of the Anhui Federation of Industry and Commerce. He called for further efforts to build a first-class business environment that is market-oriented, law-based and internationally aligned to unleash more vitality among private firms.

Public Priorities

During this year’s Two Sessions, many CPPCC members are putting forth proposals focused on issues of great concern to the public such as employment, education, healthcare and elderly care.

Technological development should create more jobs, said Wang Lizong, president of the Guangdong High-Tech Industry Chamber. The key now lies in ensuring that jobs created by new technologies can absorb workers displaced by automation, and that workers have the skills to cross that threshold. At the same time as developing strategic emerging industries and future industries, traditional manufacturing should be upgraded through intelligent transformation into more competitive ‘advanced manufacturing’ to stabilize overall employment.

The Hainan Free Trade Port launched island-wide independent customs operations at the end of last year. This marks China’s firm commitment to expanding high-level opening up and promoting an open global economy, Liu said. Since the launch, trade facilitation has improved significantly and international connectivity has become more convenient. During the Chinese New Year holiday which ended Feb. 23, offshore duty-free shopping in southern Hainan province surged 30.8 percent from the same period last year, and visa-free entry by foreign visitors soared 75.6 percent, reflecting smoother flowers of goods and people.

In terms of Chinese firms going global, Liu Yonghao, chairman of agricultural and food firm New Hope Group, suggested strengthening financial support. He proposed enhancing exchange rate risk management tools, expanding local currency swap agreements, especially the Chinese yuan, and encouraging financial institutions to offer more derivatives services such as foreign exchange swaps, so as to help companies hedge against exchange rate fluctuations and operate abroad with greater confidence.

Editor: Kim Taylor