China's economy is in the global spotlight as stimulus packages are being rolled out to raise business confidence and boost internal demand, which a Chinese economist believes is significant to the country's economy in the long run.
At a press conference on Saturday, Finance Minister Lan Fo'an unveiled a plan to substantially raise the local government debt ceiling in one lump sum, so as to pave the way for the replacement of existing hidden local debts through more government bond issuance.
Li Daokui, director of the Academic Center for Chinese Economic Practice and Thinking of Tsinghua University, said the rationale behind the stimulus policy packages lies in the investment on long-term assets and infrastructure.
"These long-term assets will enable Chinese local governments to attract more businesses, to attract more population in those second-tier, third-tier cities. With the increase of the urban population, with the increase of local business, the tax revenue 10 years, 20 years down the road will increase. The increased tax revenue will enable them to pay back this debt," Li said.
Li emphasized that without intervention, the current economic challenges would lead to more severe long-term consequences.
"All forms of stimulus will have side effects. But remember, if the economy is not being helped, if the stimulus policies are not in place, then the current situation will result in even worse, much worse consequences in the long run. So it is very important to cure the short-term problem. Otherwise the short-term problem will aggregate into long-term issues," said the scholar.
The scholar said with policymakers putting together their actions, the stimulus policy packages will pay off.
China's local debts target long-term assets: scholar
Macao has been emerging as a global hub for conventions and exhibitions in recent years by exploring the enormous opportunities in the sector, driving the region to advance its economic diversification and embrace a brighter future.
Macao has received many awards this year, such as the Best Convention City (Asia) and the Best BT-MICE City, showcasing the recognition for and influence of Macao's exhibition industry.
More than 1,000 electronic game enthusiasts from all over the world gathered recently in Macao to participate in a esports themed event.
Su Zhili, organizer of the event, said that Macao's rich experience in hosting large-scale events, coupled with its good infrastructure, has driven him to choose the region as an ideal destination to hold such an activity.
"Macao has held many similar large-scale events. It has rich experience, and the facilities at the venue are relatively mature, so we can start our work comfortably," said Su.
During the first three quarters of 2024, Macao held more than 1,000 conferences and exhibitions in total.
"We will invite more professional, special conferences to be held in Macao and also cultivate more exhibition brands with international influence in Macao, so as to promote Macao's exhibitions to be more market-oriented, professional, international, digital and greener from various aspects. This is our goal," said Elaine Wong, member of the Macao Commerce and Investment Promotion Institute.
In addition, multiple large exhibitions and conferences, such as the Macao International Trade and Investment fair, the Macao Franchise Expo, and the International Infrastructure Investment and Construction Forum, are held regularly in Macao.
With the introduction of a series of policies and measures to facilitate the exchanges between the mainland and Macao, as well as the construction and development of the Guangdong-Hong Kong-Macao Greater Bay Area and the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, Macao's convention and exhibition industry will embrace more opportunities for development in the foreseeable future.
"We have such a good industrial base in the Greater Bay Area. The mode of 'Convention and Exhibition + Industry' not only integrates the industries of Macao, but also the industries of the Greater Bay Area. In addition, Macao actively integrates into the national development and plays a role in the Belt and Road. Why are we so confident in Macao's convention and exhibition sector? Because it is backed by the motherland, and the country gives Macao great support," said Alan Ho, chairman of the Macao Association of Convention, Exhibition and Tourism Sectors.
Macao emerges as global hub for conventions and exhibitions, driving economic diversification and international recognition
