In-depth study path to high-quality development

Since the 20th National Congress of the Communist Party of China, in-depth research and study, as a tradition of the Party and the government to identify real problems the country faces and find solutions, have been high on the agenda of policymakers and stressed repeatedly at high-level meetings. Highlighted tasks include research at grassroots levels, getting to the crux of problems and finding solutions to tough issues. Many tone-setting meetings said governments at all levels should promote the in-depth research and study as well as strengthen creative thoughts in policy implementation, while pushing ahead the progress of government work. They also said formulation of follow-up policies should be carried out following an in-depth investigation.

Resolving major problems

In late March, the Central Committee of the CPC decided to launch a Party-wide campaign of in-depth research and study with the aim of identifying and resolving major problems that could hamper high-quality development and the country's modernization drive. According to a work plan released by the General Office of the CPC Central Committee, Party committees at all levels are required to carefully organize the research and study work, with leading officials and Party members actively involved.

Research subjects include challenges and major issues in the promotion of common prosperity and improvement of people's livelihoods. Problems that are "of the greatest and most direct concern to the people", such as employment, education, healthcare and housing, as well as environmental protection, social stability and full and rigorous self-governance of the Party, should be covered by the campaign, said the plan.

Noting that China faces new strategic opportunities and tasks, is entering a new strategic stage, and is confronted with new strategic needs and environment for its development, the plan said that the promotion of research and study in the Party is a "strong move to deal with challenges and tests on the journey toward Chinese modernization".

As we can see, in-depth investigation and study have been elevated to a mission made after top-level planning, which will have an important impact on policy formulation and promotion.

So far, we have seen a large volume of research and surveys to this end. Led by the new leadership team of the State Council, the country's Cabinet, the recent survey has focused on the development of advanced manufacturing industries, such as equipment manufacturing and construction machinery.

During an inspection tour and at a symposium on the development of the advanced manufacturing industry in Central China's Hunan province in March, Premier Li Qiang urged more efforts to prioritize high-quality development, place emphasis on the development of the real economy, make a big push to develop advanced manufacturing, advance high-end manufacturing and accelerate the construction of a modern industrial system.

As the domestic and external environments are undergoing profound and complex changes, the country's manufacturing sector is at a critical juncture, he said, and called for efforts to promote the transformation and upgrading of the traditional manufacturing sector, and to advance the cultivation and development of strategic emerging industries.

A market-oriented, law-based and internationalized business environment should be created and policy orientation to support the advanced manufacturing industry should be strengthened, the premier said.

At the local level, industrial transformation and upgrading have become the focus of research. Since late March, provincial governors and Party secretaries have investigated leading enterprises in local industries. Generally, they expressed expectations that enterprises increase scientific and technological innovation and accelerate industrial upgrading and at the same time they urged authorities to better serve enterprises and further enhance the business environment for market players.

There were also top local officials going to the grassroots level to investigate local agriculture, forestry, water conservancy, ecological protection and other undertakings.

Such in-depth investigation into, and study of, relevant areas of industrial development by leadership teams of governments at all levels will undoubtedly help stimulate the enthusiasm of all socioeconomic participants and accelerate the guidance of policies for investment in such industries. This round of stabilization moves differs from previous ones, as it mainly focuses on increasing support for industrial investment and partially hedging against the impact brought by the weaker-than-expected rebound in real estate.

It has been repeatedly underlined by tone-setting meetings, such as the Central Economic Work Conference, and key documents such as the Government Work Report delivered during the two sessions in March, that the significance and urgency of transforming and upgrading traditional industries and cultivating strategic emerging industries are key. Ministries and commissions have also emphasized increasing support for industrial development during annual meetings. In addition, local governments have also rolled out support to this end.

Positive signals

Positive signals released by such government efforts and meetings have been attracting the attention of funds and project planners, who have increased support for industrial transformation and upgrading, and accelerated the layout of strategic emerging industries.

From meetings of large State-owned banks to those of the China Securities Regulatory Commission and the China Banking and Insurance Regulatory Commission, priority has been given to the work of guiding more financial resources into key areas, so as to build up a virtuous development cycle. As for projects, we can see that the planned investment scale of major projects has still increased and the proportion of major industrial projects has risen to nearly 60 percent. The layout of strategic emerging industries has also accelerated, and the proportion of projects such as new materials, new energy and artificial intelligence has also increased significantly. Accordingly, construction of industry-supporting facilities has also been accelerated, and more than 30 percent of local special bonds have been invested in municipal industrial parks at the beginning of the year.

On the funding end, major lenders were urged in January by China's central bank and its top banking and insurance regulator to further optimize their credit structures and provide targeted support for key areas and weak links of national economic and social development. Major commercial banks nationwide have unveiled plans and said they will stay focused on serving the real economy and expanding domestic demand this year, while accelerating the establishment of a modern industrial system, as well as stepping up extensions of credit to micro and small enterprises, technological innovation and green development.

Amid such a trend, it should also be noted that the COVID-19 pandemic is still ongoing. There are still potential uncertainties and it is necessary to closely track the evolution of the virus and its impact on various fields to avoid potential disruption to the economy.

Zhao Wei is chief economist of Sinolink Securities and a member of the China Chief Economist Forum, a think tank. Yang Fei and Hou Qiannan are researchers of Sinolink Securities.

The views don't necessarily reflect those of China Daily.