Chinese Central Bank Commits to Further Support for Private Enterprise, Dealing with “US Containment and Pressure” Following 2023 Two Sessions

347

The People’s Bank of China (PBOC) has unveiled a slew of resolutions just following the convening of China’s Two Sessions annual congressional meeting for 2023, including commitment to support for both the Communist Party of China (CPC) and further financial support for Chinese private enterprise.

PBOC recently held a meeting on the “spirit of the Two Sessions and key speeches delivered by President Xi Jinping during the Two Sessions,” just following the close of the 2023 congressional event in March.

The meeting highlights a range of “key missions at present and in the near future,” including:

  1. The firm and unwavering promotion of high-quality development. “Accurately and vigorously implementing a prudent monetary policy, grasping the pace of credit extension, maintaining a reasonable growth in the total amount of money and credit, and making every effort to stabilize growth, employment, and prices. Building a modern central bank system, deepening reform and opening up, improving the green financial system, and comprehensively improving the level of financial services management.
  2. Adhering to the “Two Unwaverings(in reference to support for both state-owned and private enterprise). “Guiding financial institutions to effectively strengthen and improve financial services, increasing support for private small and micro enterprises, and further resolving the financing challenges of private small and micro enterprises. Continuing to promote bond financing support tools for private enterprises to support the reasonable bond financing demand of private enterprises.”
  3. Continuing to prevent and defuse financial risks. “Upholding baseline ideology, weaving a tight financial safety net, strengthening the development of the financial stability guarantee system, improving emergency response plans, maintaining the smooth operation of the financial market and financial infrastructure, and firmly defending the bottom line of no systemic risk. Upholding the position that ‘houses are for occupation, not speculation,’ and promoting the stable and healthy development of the real estate market. Strengthening the sense of urgency and the spirit of struggle, and appropriately responding to containment and pressure from the United States and the West.”
  4. Unwavering and comprehensive strict party governance. “Solidly fulfilling the political responsibilities of party governance and administration; continuing to deepen central inspection and rectification, implementing the spirit of the eight central regulations (中央八项规定), strengthening the development of protocols, and maintain a high-pressure conditions for the punishment of corruption. Carrying out high-quality education on the theme of learning and implementing Xi Jinping’s new era of socialism with Chinese characteristics, and further advancing the new great project of party development in a new era.”

With regard to support for the CPC and ongoing institutional, the PBOC meeting also said that it “firmly supports that party organizations at all levels in the system must conscientiously implement the decision-making arrangements of the Party Central Committee on deepening the reform of party and state institutions.”

“[We] fully understand the importance and urgency of the reform of party and state institutions, further improving their political standing, and strictly enforce political discipline, strengthen determination and confidence, and fully implement the tasks of institutional reform.”