Editor's note: China's economy has not only recovered quickly but also made a great contribution to world economic development despite the COVID-19 pandemic, thanks to the wisdom of and effective measures taken by the Chinese government.
Let's take a look at some of the major economic policies to boost recovery in 2020.
I Implementing Foreign Investment Law
Denmark's biopharmaceutical company Novo Nordisk signs a strategic cooperation framework agreement to set up a new entity in the Lingang Area, a section of the China (Shanghai) Pilot Free Trade Zone, at the third China International Import Expo on Nov 8, 2020. [Photo provided to chinadaily.com.cn]
The Foreign Investment Law took effect in China starting Jan 1 to better protect the interests of foreign investors in the country.
China is taking more steps to open up its economy to foreign investors, as it aims to further facilitate investment and spur growth despite disruptions from the COVID-19 pandemic.
II Establishing dual-circulation development paradigm
Alibaba Group's Nov 11 global shopping festival, which started Nov 1, has generated 498.2 billion yuan ($74.1 billion) in gross merchandise volume by the end of Nov 11. [Photo provided to chinadaily.com.cn]
The Fifth Plenary Session of the 19th Central Committee of the Communist Party of China proposed that China seek to establish a dual-circulation development paradigm.
The dual circulation development paradigm, China's medium- and long-term development strategy, focuses on domestic and overseas markets reinforcing each other, with the domestic market as the mainstay.
III Ensuring six priorities and stability in six areas
A textile company resumes work in Zaozhuang, East China's Shandong province, on Feb 20, 2020. [Photo/sipaphoto.com]
The central government has reiterated that fiscal funds should be used to ensure the focus remains on the "six priorities":
Employment
People's livelihoods
Development of market entities
Food and energy security
Stable operation of industrial and supply chains
Smooth functioning at the community level
and to ensure stability in six areas:
Employment
Finance
Foreign trade
Foreign investment
Domestic investment
Market expectations
IV Continuing to cut taxes and fees
A taxpayer in Baokang county, Hubei province, enquires about filing procedures at the local tax office. [Photo by Yang Tao/For China Daily]
The Ministry of Finance continues to implement the tax and fee cut policy this year, researching new measures to ease the tax burden of enterprises affected by the novel coronavirus outbreak.
In the first three quarters of this year, a total of more than 2 trillion yuan of new tax and fee cuts were made across the country, according to the State Taxation Administration.
V Signing RCEP - a landmark achievement of East Asian regional cooperation
Chinese Premier Li Keqiang and leaders of other countries attend the signing ceremony of the Regional Comprehensive Economic Partnership (RCEP) agreement after the fourth RCEP Summit, which is held via video link, Nov 15, 2020. [Photo/Xinhua]
After eight years of unremitting efforts, the Regional Comprehensive Economic Partnership agreement was formally signed on Nov 15.
The signing of the pact highlights that open cooperation is still a historical trend and joint efforts to reach mutually beneficial and win-win results are still popular.
The signing of the RCEP will help remove obstacles in the ongoing negotiations for a trilateral free trade agreement between China and its partners.
VI Establishing the Hainan free trade port and three new free trade zones
A view of Sanya Bay in Hainan province. [Photo provided to chinadaily.com.cn]
China rolled out a master plan in early June on building the southern island province of Hainan into a globally influential free trade port.
China also approved three new pilot free trade zones in Beijing, Hunan and Anhui in September, increasing the total number of FTZs to 21.
VII Cutting negative lists for foreign investment
A teller counts and arranges dollar notes at a bank in Huaibei, Anhui province. [Photo/sipaphoto.com]
China has unveiled new, shortened negative lists for foreign investment, as part of efforts to further open up the economy and improve its business environment.
The number of sectors that are off-limits to foreign investors has been cut to 33 in the 2020 version of the negative list from 40 in the 2019 version.
China also unveiled its 2020 negative list for foreign investment in pilot FTZs, cutting the number of prohibited industries to 30 from 37. The two new negative lists took effect on July 23.
VIII Boosting consumption
Tourists shop at a duty-free shopping mall in Sanya, South China's Hainan province, on March 12, 2020. [Photo/Xinhua]
China on March 13 announced targeted measures to boost consumption, including improving the consumer market supply and speeding up the construction of a smart consumption ecosystem.
The country outlined 19 measures to help promote higher quality and an expansion of capacity in the consumption sector as well as foster a robust domestic market.
IX Cutting the reserve requirement ratio
The People's Bank of China, the country's central bank, is seen in this file photo. [Photo/Agencies]
The central bank has made across-the-board and targeted RRR cuts to support the development of the real economy and reduce the actual cost of social financing.
Sources: The People's Bank of China, Ministry of Finance, State Taxation Administration, Xinhua and China Daily
