How can China properly respond to downward pressure on the economy?

"We have rich experience in coping with downward pressure on the economy, and will not hesitate to take steps. "

Today's newsletter is a translation of the remarks made by 韩文秀 Han Wenxiu, the official with the Central Committee for Financial and Economic Affairs, at a press conference Thursday in response to a question on China's economic prospects.

Han Wenxiu, who frequently makes key comments in response to outsiders' concerns about China's economic policies, such as common prosperity, highlighted four priorities in the government's actions to stabilize the economy in response to a question from Reuters.

On a macroscale, Ginger River believes Han's remarks reflect the government's recognition of and response to the country's current challenges in assuring economic success in the face of the epidemic and other internal and external constraints. So, even though Xinhua News Agency has published a news story and people.com has published a Chinese commentary after the press conference, Ginger River believes it is still necessary to provide a full-text translation for your convenience.

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路透社：现在由于受疫情冲击，有分析师认为二季度经济增长可能会明显放缓，甚至出现负增长。请问，宏观政策怎么来有效应对？会运用哪些增量的政策工具？

Reuters: Because of the epidemic's impact, several analysts anticipate that China’s economic growth may decelerate dramatically in the second quarter, or perhaps turn negative. How can China's macro policy effectively respond to it? What incremental policy tools will be used? [Reuters's first question about China’s green finance and an official’s response to it was abbreviated here]

韩文秀：大家知道，前不久中央政治局会议研究了当前经济形势和经济工作，党中央对经济下行压力加大早有预判，针对新冠肺炎疫情和乌克兰危机导致风险挑战上升的情况，党中央明确要求，疫情要防住、经济要稳住、发展要安全。这几个方面都要兼顾好，不能单打一，这是一个高难度动作，是对各地区各部门的重大考验，要认真落实到位。

Han Wenxiu: As we know, the Political Bureau of the Communist Party of China (CPC) Central Committee recently held a key meeting to analyze the current economic situation and economic work. The CPC Central Committee has predicted the increased downward pressure on the economy. Regarding the rising risks caused by the resurgences of COVID-19 and the Ukraine crisis, the CPC Central Committee clearly asserted that efforts should be made to contain the epidemic, stabilize the economy and keep development secure. All those aspects should be taken into account, and you cannot fix just one at a time. It is quite difficult work. The earnest implementation of this work is a major test for all regions and departments.

疫情是经济社会发展的“拦路虎”，必须科学精准有效防控疫情，为经济社会正常运行创造根本前提。在经济工作方面，首先要加快落实已经确定的政策，力争在上半年全部落地。国务院和有关部门也正在紧锣密鼓、源源不断地出台一些细化的政策举措，积极帮扶受疫情严重冲击的行业、中小微企业和个体工商户，稳住广大市场主体。

The epidemic is "a tiger in the way" of economic and social development. It requires scientific, precise and effective measures to prevent and control COVID-19, which is an essential pre-condition for the normal operation of the economy and society. In terms of economic work, first, efforts should be made to implement the existing policies in the first half of the year. The State Council and relevant departments are working closely and continuously on detailed policy steps to help industries, small and medium-sized enterprises and individual businesses that are severely affected by the epidemic, and stabilize the broad masses of market entities/players.

二是要抓紧谋划和推出增量政策工具。我国的财政政策、货币政策和其他政策有足够的空间和多样化的工具，我们在应对经济下行压力方面有丰富的调控经验，将会进一步加强相机调控，该出手时就会出手。

Second, we need to plan and launch incremental policy instruments with urgency. There is sufficient room for fiscal, monetary policy and other policies, and we have various policy tools. We have rich experience in coping with downward pressure on the economy, and will further strengthen macro-control in response to the situation. We will not hesitate to take steps.

三是要善于用改革的办法解决发展中的问题。我国的市场活力、发展潜力是巨大的，也是客观存在的，关键是要把它们激发出来。要坚定不移深化改革、扩大开放、搞活经济，为发展提供强大的动力。

Third, we must be adept at employing the reform approach to address development issues. The market vitality and development potential of China is enormous, yet they are absolutely real. The key is to stimulate them. To give a strong impetus for development, we will unwaveringly deepen reform, extend openness, and revive the economy.

还有一点是要充分挖掘内需潜力。前不久召开的中央财经委会议强调，要全面加强基础设施建设，发挥有效投资的关键作用。还要发挥消费对经济循环的牵引带动作用，对此有关部门都正在抓紧落实新的政策举措，谋定而后动。

Another key point is to fully tap the potential of domestic demand. The Central Committee for Financial and Economic Affairs recently emphasized the importance of making all-out efforts to improve infrastructure development and making effective investments. We also need to boost consumption to drive the economic cycle. For this, the relevant departments are working on the implementation of new policy initiatives. They will plan and act.

总的来看，风物长宜放眼量。中国经济又处在一个攻坚克难、爬坡过坎的关键时刻，我们面临的依然是前进中的问题、成长中的烦恼，只要我们坚定信心、迎难而上，就一定能够化挑战为机遇，迎来柳暗花明，这就是中国经济发展的基本逻辑。

In general, we must be far-sighted. China's economy is once again at a critical moment in overcoming difficulties, and the problems are the growing pains in the development process. As long as we strengthen our confidence and rise to the challenges, we will be able to turn those challenges into opportunities, and that is the basic logic of China's economic development.

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