Roadmap to Recovery

By George N.Tzogopoulos

During these particularly turbulent and uncertain times of the novel coronavirus disease （COVID-19） pandemic， the Chinese leadership has refrained from making predictions about the course of the nations economy as several contributing factors remain volatile.

As long as the pandemic persists， theoretical targets have to be constantly revised to account for new developments. The impact of COVID-19 on the tourism industry is a characteristic example of this uncertainty. The current difficulty in predicting Chinas incoming and outgoing tourism while quarantine measures are still in place and with no vaccine yet makes reliable economic calculations impossible. Even if people are allowed to travel， will they overcome the psychological fear of the last fi ve months？

The Chinese leadership prefers to be sincere instead of taking the risk of proposing a target that is unlikely to be met. What matters is not making vague prognoses but rather a specifi c capacity to solve problems and mitigate the economic consequences of COVID-19. From the modern Chinese philosophical standpoint， this means support for the national economy should be primarily centered around the wellbeing of people—as is the case when supporting the development of the public health system.

Centering economic development on the wellbeing of the people has been President Xi Jinpings vision and that vision became a practical policy during this years full sessions of the national legislature and the top political advisory body， collectively known as the Two Sessions， in May. Market-based employment， the Report on the Work of the Government delivered by Premier Li Keqiang asserted， is a priority to create 9 million urban jobs. This will help guarantee students graduating this year fi nd work， that demobilized military personnel will be supported， and that rural migrant workers and citizens with capabilities will not be left behind.

An interventionist fiscal policy is widely considered the best remedy in challenging times. Vast fiscal spending itself， however， will only be temporarily beneficial if not accompanied by careful planning. China opted for taking targeted solutions. This is evident from both the content of Lis report and his strong focus on tailor-made measures during a press conference on May 28. These measures include increasing employment support， further cutting taxes and fees， reducing rents and interest on loans， and boosting consumption and investment. A prudent fi scal policy additionally requires the nations belt to be tightened and the Central Government has announced its commitment to immediately make cuts to all unessential items.

As China emerges from the effects of COVID-19， the Chinese Government seeks to pursue domestic economic development in two ways. On the one hand， it will support small and medium-sized enterprises， continue the reform of state-owned enterprises， and give private and foreign-funded businesses equal access to production factors and policy support. On the other hand， the government will work on the upgrade of manufacturing by fostering industrial， Internet， and technological innovation， as well as supply-side structural reform.

Xi has stressed combining the relaunch of the economy—with an emphasis on the continuation of specific infrastructure work， urbanization and environmental protection—with the battle against poverty.

The COVID-19 has also impacted the fight against poverty. Some farmers， for instance， were unable to go to work in the fi rst months of the year and their products could not be sold because of disruptions to transportation. The government will be working to close these gaps through the use of new technologies.

The Two Sessions marked Chinas return to normality after months of hard work. The images of full rooms with delegates where deliberations were made demonstrate that the worst days of COVID-19 belong to the past.

The Chinese leadership remains on high alert to prevent a second wave of COVID-19 and is working to improve public health conditions for citizens and to support researchers in fi nding a vaccine. Dy doing so， however， it also sends a message that China is able to respond to challenges， act responsibly at the global level and put the wellbeing of people above other interests. n