China has made noteworthy progress in supporting local economy through the issuance of bonds, according to the Ministry of Finance on Monday.
In March this year, China unveiled an action plan to implement the renewal program of promoting large-scale equipment upgrades and consumer goods trade-ins in an effort to enhance domestic demand and shore up the economy. It further stepped up policy support in July with an extra funds injection of 300 billion yuan (about 42.5 billion U.S. dollars) via ultra-long special treasury bonds.
The ministry announced on Monday that so far the 300 billion yuan of ultra-long special treasury bonds has all been allocated to local governments.
At the same time, the ministry worked together with other departments involved and issued detailed implementation rules for different fields to clarify the negative list of the use of funds for the renewal program.
With the fiscal support for the renewal program in place, from January to October, the investment in equipment and tools increased by 16.1 percent year-on-year, driving the growth of total investment by 2.1 percentage points. The total retail sales of consumer goods in October increased by 4.8 percent year-on-year, 1.6 percentage points faster than in September.
The ministry also updated the progress in issuing new local government special bonds.
Data shows that as of the end of October, local governments had issued a total of 3.9 trillion yuan in new local government special bonds, with an issuance progress of 98 percent.. Among them, 2.1 trillion yuan was issued from August to October, exceeding the total issuance from January to July. Specifically, it was invested in more than 30,000 projects with strong economic and social benefits, which promoted the stable development of local economy and society.
On Nov 8, the Standing Committee of the National People's Congress reviewed and approved an increase of 6 trillion yuan in local government debt limits to replace existing hidden debts. On Nov 9, the Ministry of Finance had issued the new 6 billion-yuan debt limits to all localities, and some provinces have started the issuance work to speed up the implementation of the policy.
China makes progress in supporting local economy through issuing bonds
Scholars and experts have hailed Chinese President Xi Jinping's speech at the 31st APEC Economic Leaders' Meeting for outlining a vision of a more integrated and prosperous Asia-Pacific region.
They believe Xi's speech articulated a clear vision for China's role in building an Asia-Pacific community with a shared future, signaling a new era of regional development and cooperation.
Xi emphasized APEC's pivotal role in driving the Asia-Pacific region's remarkable economic growth and prosperity, making it the world's most dynamic economic region, during his speech titled "Shouldering Responsibility to Our Times And Jointly Promoting Asia-Pacific Development," delivered in Peru's capital Lima on Saturday.
The Chinese president called for efforts to uphold a universally beneficial and inclusive vision for Asia-Pacific development, make good use of the APEC platform to strengthen economic and technical cooperation, increase support for developing economies and disadvantaged groups, and work together to grow the pie and distribute it equitably to allow more economies and people to benefit from development.
Xi also advocated for an open and interconnected Asia-Pacific, emphasizing the critical role of the Free Trade Area of the Asia-Pacific (FTAAP) in unlocking the region's full economic potential and securing its long-term prosperity
The message conveyed by Xi has been echoed by many as it inspires hope for a brighter future for Asia-Pacific cooperation.
"'The only way to be profitably national is to be generously universal.' President Xi quoted this proverb to express a profound idea. He connected China's interests with those of other countries, emphasizing China's advocacy for win-win cooperation across various fields," said Oscar Vidarte, professor of international relations at the Pontifical Catholic University of Peru.
"In my opinion, the most significant (in Xi's speech) are the ideas of promoting economic globalization and creating a free trade zone in the region. This will be of great interest to many countries in the region," said Vasily Kashin, director of the Center for Comprehensive European and International Studies at Russia's National Research University-Higher School of Economics.
"I think Xi Jinping's presentations to the APEC conference are exactly what's needed these days. He's got his hand on the policy, knows all of these issues, and all of these things, deeply understands them, and has a good dialogue with most of the people, pretty much all of the people attending. Xi Jinping's presentation was very good. It was accurate, it reflected China's policy. It reflected a collaborative aspiration for the world, and that's what we want," said Mike Dawson, president of the Auckland branch of the New Zealand China Friendship Society.
Meanwhile, several major international news organizations have published articles covering Xi's speech.
President Xi emphasized China's focus on promoting mutual benefit and win-win outcomes in the Asia-Pacific region, expressing the desire to "create a new hallmark of a green and digital Asia-Pacific" and to "usher in the next 'golden thirty years' of Asia-Pacific development," wrote EFE News.
Noting that the world is entering a new period of turbulence and transformation, President Xi expressed concern and voiced opposition to the spread of unilateralism and protectionism, as well as increasing economic fragmentation. He called for maintaining the stability and smooth operation of global industrial and supply chains, according to an article by the AFP.
Reuters reported that President Xi outlined a series of measures by the Chinese government to further expand openness, and emphasized that China will take proactive steps to open its door even wider to the world.
Xi's APEC speech hailed for expanded cooperation, shared prosperity
