China to offer ‘policy leeway’ to make up economic losses

Backing has been given to 19 fixed-asset investment projects with a total investment of US$26.5bn in past two months

by Xu Yuenai
China to offer ‘policy leeway’ to make up economic losses

(ATF) – China’s National Development and Reform Commission (NDRC) has indicated it will introduce a “policy toolkit” to offset economic losses caused by the COVID -19 epidemic “in a timely fashion”.

NDRC spokesman Meng Wei said in a statement the resumption rate of industrial enterprises has increased rapidly, with the exception of Hubei and other hard-hit provinces. The rate in other provinces, autonomous regions and cities has exceeded 90%, of which Zhejiang, Jiangsu, Shanghai, Shandong, Guangxi and Chongqing are close to 100%.

In the first two months of the year, NDRC examined and approved 19 fixed-asset investment projects with a total investment of 185.3 billion yuan (US$26.5bn), mainly in transportation, technology and other industries. 

Among them, the expansion project of the third runway of Shenzhen Airport will better meet the needs of air volume growth in the Pearl River Delta region. The airport forms the core of an international aviation hub of world-class airports that encompasses Guangdong, Hong Kong and Macau in the Greater Bay Area.

Li Hui, deputy director of the Comprehensive Department of the NDRC, said that during this period major economies such as the US and Europe have made substantial adjustments to their macro policies.

China still has sufficient policy tools, and will closely monitor the economic situation and promote the introduction and implementation of relevant preparatory policies, strengthen policy hedging, and strive to minimize the impact of the COVID-19 epidemic, Li said.