Views:3 Author:Site Editor Publish Time: 2019-05-31 Origin:Site
Targeted monetary policies have been stepped up to lend a hand to the private sector, which are "being done in a methodical and considered way that I think is ultimately going to help", he said.
On May 15, the People's Bank of China started a three-step plan of cutting the reserve requirement ratio (RRR) of small and medium-sized rural commercial banks, a move that will free 280 billion yuan for loans to small private companies.
The central bank has also adopted its new instrument - targeted medium-term lending facility (TMLF) - twice this year, lending more than 500 billion yuan to commercial banks that "have the potential of increasing loans for small and micro enterprises and private enterprises".
More targeted RRR cuts and TMLF injections may be on the way, Pang said, adding that other policy support for small exporters can also be expected, such as export rebates and measures to facilitate exports to economies involved in the Belt and Road Initiative.
In the longer term, Pang expects the Chinese economy to maintain a GDP growth rate of about 6 percent for the next decade, with the development of 5G-related industries an important driver.
The superfast wireless technology will bring "revolutionary changes" to both the Chinese and the world economy, like the evolution from "gas light to light bulb", Carnell said.
For instance, 5G will not only bring about new demands such as for streaming and gaming, but also change economic tenets as marginal costs for production may drop to zero under some circumstances, he said.
Pang said China is expected be more advanced than many other economies in terms of 5G development, as the country had started related investments earlier. Meanwhile, against the backdrop of trade tensions, it should strive to become more self-sufficient in the sector, she said.
China may grant official 5G licenses to telecom carriers this year and is likely to start commercial use of the technology nationwide in the near future, possibly as soon as October, people familiar with the matter said recently.
Jiang Xueqing contributed to this story.