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Innovative macro-control creates economic highlights

Updated: Jan 27,2016 10:07 AM Business Daily

The report on the Chinese economy in 2015 has been published - the GDP growth rate basically reached the goal of around 7 percent, which the government set at the beginning of 2015.

Several experts interviewed by National Business Daily said that it is not easy to achieve such a result and was due in part to macro-control innovation.

China’s macro-control has a clearer orientation: In 2013, an innovative idea and style was put forward – the economy should be managed within a reasonable range. In 2014, more emphasis was put on targeted macro regulation.

It is worth noticing that Premier Li Keqiang first mentioned discretionary macro regulation in July 2015 - “to implement target and discretional macro regulation more accurately and efficiently”.

In the past year, target macro regulation was more often used in reducing the deposit reserve ratio for micro to small sized enterprises and rural finance, accelerating the construction of railway and reconstruction of shanty towns. Discretional macro regulation was more often used with preset and fine adjustment.

While fruitful results have been achieved, Premier Li also said that there are still many measures of innovative macro-control policies that can promote a long-term development of the economy.

More emphasis should be put on forward-thinking and prediction, said Liu Yuanchun, executive director of the National Academy of Development and Strategy at Renmin University. He also said that an overall plan should be prepared when dealing with sectional risks.

“One important thing is, whether macro-control can guide market expectation,” Liu said. Whether the risks caused by economic changes and currency mismatch can be managed properly depends on whether macro-control can change market expectations, he added. For now it is the prediction of the decrease in renminbi’s exchange rate, and whether other countries can increase their confidence in China’s reform, he said.