Optimize investment structure and expand investment space

2023-01-05

Investment is an important component of domestic demand. Recently, the Central Committee of the Communist Party of China and the State Council issued the Outline of the Strategic Plan for Expanding Domestic Demand (2022-2035), which places "optimizing the investment structure and expanding the investment space" at an important position, and points out that "efforts should be made to improve investment efficiency, promote rational growth of investment scale, continuously optimize the structure, and enhance the potential of investment growth". This shows that expanding investment is an important hand to expand domestic demand, and also an important force to promote the overall improvement of economic operation. By optimizing the structure, investment can become a joint point between demand side management and supply side structural reform, giving consideration to the policy goal of stable growth in the short term and mode transformation in the long term. At present, the triple pressures of shrinking demand, supply shocks and weakening expectations are still large. The policy guidance for doing economic work well is still to stick to the principle of "stability first" and "seeking progress in stability". The recently held Central Economic Work Conference clearly stated that "active fiscal policy should be strengthened and effective" and "prudent monetary policy should be precise and powerful". The most direct mechanism for macroeconomic policy to stabilize growth is through investment channels. Fiscal policy can directly increase public investment, while monetary policy can stimulate enterprise investment, which plays a role in stimulating economic growth. For an economy as large as ours, it is essential to keep the economy running smoothly. Strive for a new journey. To achieve the set goals, we also need to maintain a certain economic growth rate. Therefore, whether based on the current or long-term, it is crucial to achieve high-quality economic development. Changes in some economic conditions require that China's new economic growth model pay more attention to innovation activities and domestic demand, and pursue the improvement of growth quality and productivity. This not only requires the formation of an institutional environment conducive to stimulating innovation and creativity, but also puts forward higher requirements for the way investment plays its role. This requires grasping the direction of investment, removing investment obstacles, focusing on key areas and weak links, striving to increase investment in manufacturing, increasing efforts to address weaknesses in key areas, systematically laying out new infrastructure, and providing traction for high-quality development with more efficient and better structured investment. Whether it is to improve traditional industries or incubate emerging industries, a large amount of high-quality investment is required. The stable growth of short-term expanded investment can enable more funds to be invested in areas that can support the formation of new growth drivers. First, to develop high-end manufacturing, we should not only transform traditional manufacturing, but also invest in advanced manufacturing; Second, we should make up for weaknesses in key areas, such as transportation, energy, water conservancy, logistics, ecology and people's livelihood infrastructure, and break the bottleneck that restricts the improvement of economic efficiency; Third, we need to make a forward-looking layout and invest in new infrastructure construction in an appropriate way in advance to provide favorable conditions for accelerating the construction of digital China. In this way, expanding investment can not only stabilize growth in the short term, but also lay the foundation for long-term sustainable growth. Investment should be increased, and more importantly, investment efficiency should be improved, which should ultimately help form new growth drivers and help achieve common prosperity. This requires paying more attention to optimizing the investment structure while ensuring the reasonable growth of investment scale. This requires a series of policy support, one of the key conditions is“

Edit:wangwenting    Responsible editor:xiaomai

Source:china.cn

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