Liu He reaffirmed that policymakers would prioritize economic development, let market play a fundamental role in the economy (Liu emphasized that it’s not possible for China to shift back to the planned economy track) and promote higher-level of opening up.
He further stated that policymakers would relax restrictions in the property sector imposed when the sector was overheated, and help expand effective demand. Property remains as one of the nation's pillar industries, and he indicated that the property sector accounts 40% of bank lending, 50% of local government revenues, and 60% of urban households’ assets.
Liu He clarified that "dual circulation" focuses on expanding domestic demand, but policymakers would stick to opening up and enhancing international cooperation.
On common prosperity, Liu He stated that this would be a long-term policy goal and aimed to reduce inequality. Policymakers would promote development and encourage wealth creation.
In the Q and A on China’s Covid situation, he mentioned dining-in, tourism and transportation services have largely normalized in China, and inbound tourists only needed to provide 48-hour negative Covid test results. Liu believed that the recovery of GDP growth to its normal pace is highly possible, and expect imports to improve significantly, firms to step up investment, and household consumption to normalize. He said that the healthcare system functions normally now and Covid policy focuses on treatment of the elderly population.
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