The agricultural outlook for China is remarkably optimistic this year, with forecasts predicting that grain production will exceed an unprecedented 1.4 trillion jinThese figures represent not only a milestone in agricultural achievement but also reflect broader trends in various sectors of the economyIn October, the added value of large-scale manufacturing rose by 5.4% year-on-year, indicating an improvement over the previous month’s data, while the service sector experienced a significant uptick as well, with its production index increasing by 6.3% in the same timeframe.

These positive economic indicators can be traced back to the ongoing implementation of the "two new" policies, which have played a crucial role in unlocking consumer potential and stimulating investmentAs a result, there has been a noticeable acceleration in infrastructure investments, manufacturing investments, and retail sales of consumer goods

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Notably, exports, valued in renminbi, enjoyed a remarkable year-on-year growth of 11.2%, marking an impressive increase compared to the previous month's figures.

The revival of the stock and real estate markets is also worth mentioning, with transactions picking up pace in OctoberThe total number of newly built and second-hand houses sold across the country rose by 3.9% year-on-year, effectively breaking an eight-month streak of declinesThe average daily trading volume on the Shanghai and Shenzhen stock exchanges reached an astounding 19.8 trillion yuan, reflecting a nearly 150% increase from the previous monthThis surge indicates a renewed sense of confidence among market participants and an improved outlook for business performance.

Li Chao, an expert in economic policy, shed light on this situation, expressing optimism that the continuing effectiveness of existing policies combined with the robust implementation of new initiatives could sustain the economic recovery witnessed since October

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November and December are anticipated to follow a similar trajectory of growth.

The "two new" initiatives have already resulted in nearly 300 specific policies being rolled out, fostering a virtuous cycle where investment and consumption mutually reinforce each other, thus significantly bolstering the economic rebound.

Among these policies, the practice of replacing old consumer goods with new ones focuses on key products like automobiles, home appliances, and home furnishingsThis initiative resonates well with consumer demand for superior, smarter, and more environmentally friendly productsData indicates that this "replacement" policy significantly revitalized the sales of home appliances, with October witnessing a nearly 40% year-on-year increase in sales of household appliances and audio-video equipment.

On the industrial front, equipment renewal policies have been directed at seven critical sectors, including agriculture, education, transportation, and healthcare

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The government is channeling 150 billion yuan from long-term special bonds directly into these sectors, alongside the establishment of 112 standards concerning energy consumption and pollution controlThese initiatives aim to empower businesses to innovate their workflows, embrace digital transformation, and pivot towards greener manufacturing, thereby encouraging traditional industries to upgrade and modernize.

As for the continuation of the "two new" policies into next year, Li indicated that evaluations of the current initiatives will be carried out to collate successful strategies and practicesThe intention is to propose measures that enhance future support for the initiatives, thereby broadening their scope to consistently benefit the populace and stimulate enterprises, ultimately leading to a healthier economic environment.

Li emphasized the importance of the private economy in the socialist market landscape of China

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Since the beginning of the year, various measures have been put into action by the National Development and Reform Commission (NDRC) and relevant departments to ensure the robust growth of the private sectorThis includes accelerating the legislative processes that cover aspects of private enterprise, pushing for improved conditions for private investments, and fostering a level playing field for all types of enterprises.

Moreover, these efforts have been complemented by establishing a routine mechanism for communicationThis communication network spans four levels—national, provincial, municipal, and county—ensuring that the voices of private enterprises are heardBy the end of October, the NDRC had received 1,234 issues raised by private enterprises, successfully addressing 696 of them, which illustrates their commitment to resolve issues affecting the private sector.

Looking at the current landscape, there is a growing array of positive factors bolstering the development of the private economy

For instance, private investment in manufacturing surged by 11.4% in the first ten months of the year—surpassing the overall growth rate for the manufacturing sector by 2.1 percentage pointsThis trend demonstrates that private investment in physical economy sectors maintains a strong upward trajectoryAdditionally, from a foreign trade perspective, private companies saw a 9.3% increase in imports and exports in the same period.

Market vitality is also climbing, evidenced by the accelerated release of consumer spending potentialThe surge in online retail, particularly prominent among sectors characterized by a significant proportion of private businesses, has been impressive, with a reported 8.3% year-on-year growth in the retail sales of physical goods online, reflecting a 0.4 percentage point increase from the previous nine months.

Moving forward, Li reiterated that the relevant authorities will continue to pursue practical measures to bolster private enterprises, especially in large-scale national projects