Guard Against Economic Risks

Since the 18th CPC National Congress, the Party Central Committee has put forward important views on sound macro-control system, innovation and improvement of macro-control ways. The main task of macro-control is to maintain the balance of the total economic output, promote the coordination of major economic structures and optimize the layout of productivity, reduce the impact of economic cycle fluctuations, prevent regional and systemic risks, stabilize market expectations, and achieve sustained and healthy economic development.

More attention should be paid to expanding employment, stabilizing prices, adjusting structure, improving efficiency, preventing and controlling risks, and protecting the environment. Since the 18th CPC National Congress, based on the overall development laws of domestic and foreign economic development, the Party Central Committee has proposed to improve the macro-control system guided by national development strategies and plans and with fiscal and monetary policies as the main means to promote the setting of macro-control goals and the institutionalization of policy measures. And the Party Central Committee has also proposed to further coordinate fiscal policy, monetary policy, industry, price and other policy instruments, and to improve the level of discretionary decision-making to enhance the foresight, pertinence, and coordination of macro-control, thus promoting stable economic operation and structural transformation and upgrading, and ensuring and promoting the stable and healthy development of China's economy. China's economy is showing an increasingly powerful anti-interference ability against risks. To strengthen the prevention and control of major risks in the economic field, it is necessary to establish risk identification and early warning mechanisms, adhere to a global perspective, and effectively prevent and resolve prominent hidden risks.

The first is to stick to prevention first. It is necessary to focus on major risks in international and domestic key areas, establish a sound risk identification and monitoring and early warning system, so that the prevention and control barriers are moved forward, preventing the occurrence of gradual failure, and avoiding the accumulation of contradictions. The second is to adhere to the steady and orderly resolution of risks. Take the initiative to release risks in a controlled way and rhythm, neither rushing nor doing nothing. The third is to persist in improving risk prevention and control capabilities. Through reform and innovation and structural upgrading, we must focus on improving the risk prevention and control capabilities of fiscal condition, finance, energy, mineral resources, water resources, food, ecological and environmental protection, safe production, network security, etc., and transform more development fruits into risk prevention and safety guarantee abilities. The fourth is to stick to the rule of bottom line. We need to focus on preventing the most difficult and dangerous risks, improve risk handling plans, strengthen policy reserves and material guarantees, and resolutely maintain the bottom line of avoiding systemic risks. The report of the 19th CPC National Congress further required the deepening of the reform of the financial system, enhancing the ability of financial services to serve the real economy, increasing the proportion of direct financing, and promoting the healthy development of multi-level capital markets. It is required to improve the two-pillar control framework of monetary policy and macro-prudential policies, and deepen the market-oriented reform of interest rates and exchange rates. It is also required to improve the financial supervision system and hold the bottom line of avoiding systemic financial risks.