Dean Liu Xiaochuang Interviewed on Macroeconomic Regulation

“Itis a must to stick to stability foremost, stick to the policy framework ofstable macroeconomic regulation policy, flexible microeconomic regulationpolicy, comprehensive social policy, and improve the farsightedness,pertinence, and effectiveness of macroeconomic regulation to achieve theexpected objective of next year.”

The central economicwork conference held currently set a clear objective task and policy keynote ofmacroeconomic regulation in 2020. Analyst believed that, since this year,confronted with complicated situation of increasing domestic and overseas risksand challenges, the proper macroeconomic regulation measures have helpedChina’s economy to maintain a good development momentum. In 2020, “stability”will become the core objective of the macroeconomic regulation policy, and nomatter the fiscal policy or the currency policy should serve for the overallsituation of stable economic operation.

In2019, the taxes and fees reduction has run through the financial policy all thetime. The data of the State Taxation Administration of The People's Republic ofChina displayed that the whole country had a cumulative taxes and feesreduction of RMB1783.4 billion in the first 3 quarters of 2019, including newlyadded taxes reduction of RMB1510.9 billion, newly added social security feesreduction of RMB272.5 billion. The newly added taxes reduction includes RMB703.5billion of newly added taxes reduction of value added tax reform, RMB182.7billion of newly added taxes reduction of inclusive policy for micro and smallenterprises, RMB442.6 billion of overlapped newly added taxes reduction oftwo-step reform of individual income tax. Meanwhile, category taxes ofdifferent industries achieved year-on-year drop.

Howabout the financial policy trend in 2020? The central economic work conferenceclearly pointed out that proactive financial policy needs to powerfullyadvocate quality improvement and efficiency increase, pay more attention tostructural adjustment, firmly compress general expenditure, do a good job inkey guarantee fields, and support the grass-root level to guarantee the salary,operation and the basic people’s livelihood.

Whilebeing interviewed by the People’s DailyOverseas Edition, executive dean ofSchool of PublicEconomics and Administration of Shanghai University of China Public FinanceInstitute, professor Liu Xiaochuan expressed that a good developmentenvironment is necessary for either solving various problems restricting thehigh quality development of China’s economy or pushing the supply sidestructural reform. It can be said that “growth stabilization” is a necessarycondition for “reform promotion”. Central economic work conference this yearhighlighted to adopt “proactive financial policy” again to guarantee that theeconomic growth maintains a reasonable range.

ProfessorLiu Xiaochuan analyzed that the financial policy of 2020 would carry out byfocusing on three aspects: firstly, give a play to the leading and pulling roleof investment in major projects, municipal pipeline network, municipal parkinglots, cold chain logistics, etc. to stabilize the general needs; secondly,further improve the management level of financial funds and optimizeexpenditure structure to guarantee the “quality improvement and efficiencyincrease” of inventory financial resources; thirdly, continuously focus onpeople’s livelihood, focus on the inclusiveness, fundamentality andcomprehensiveness of financial funds using, to create a stable socialatmosphere favorable for reform. Besides, taxes and fees reduction will alsokeep on playing its role and further reduce the enterprises’ burden.