Coordinated macro and micro policies essential for economic growth

A view of Beijing's CBD area. The day after Government Work Report, the country's banking, commerce, development, finance and securities officials answered questions from the press on the economic policies to be implemented to support the 2024 growth target of around 5 percent. China's economy faces challenges from a sluggish global economy, geopolitical issues impacting international trade and a recognized need to encourage more consumer spending to grow the economy under the dual-circulation strategy of domestic growth independent of external factors and yet maximizing international opportunities as they arise. Examples included incentives to replace old household appliances with new models – not only boosting consumption but also providing more energy efficient, modern equipment that are safer to use – and encouraging the replacement of old automobiles, which are inefficient in fossil fuel use and polluting the air, with high technology electric vehicles. In addition, it was recognized that urbanization will continue to play a key role in China's economic growth and raising of living standards – research has shown that a one per cent rise in urbanization leads to trillions of yuan of new investments and 200 billion yuan of consumption potential – thus urbanization is a key link in the investment and consumption components of aggregate demand.