The person in charge of the Finance Department of the Ministry of Commerce interprets the "Notice on Strengthening the Coordination between Commerce and Finance and Boosting Consumption with Greater Efforts"

Recently, the Ministry of Commerce, the People's Bank of China, and the State Administration for Financial Regulation jointly issued the "Notice on Strengthening the Coordination between Commerce and Finance and Boosting Consumption with Greater Efforts" (hereinafter referred to as the "Notice"). The person in charge of the Finance Department of the Ministry of Commerce interpreted the "Notice".

1、 Background of the Issuance of the Notice

The Party Central Committee and the State Council attach great importance to boosting consumption. The Fourth Plenary Session of the 20th Central Committee of the Communist Party of China pointed out that we should give full play to the role of policies such as industry, price, employment, consumption, investment, trade, region, environmental protection, and regulation, and promote the formation of more economic development models led by domestic demand, driven by consumption, and endogenous growth. The recently held Central Economic Work Conference called for guiding financial institutions to increase support for expanding domestic demand. The General Office of the Central Committee of the Communist Party of China and the General Office of the State Council have issued the "Special Action Plan for Boosting Consumption", which clarifies the need to strengthen the coordination between fiscal, taxation, finance, industry, investment and consumption policies. In order to implement the decisions and deployments of the Party Central Committee and the State Council, the Ministry of Commerce, the People's Bank of China, and the State Administration for Financial Regulation have conducted in-depth investigations and extensive listening to opinions. Based on the financial support policies that have been issued, they have further refined and improved specific measures, studied and formulated the "Notice", guided local relevant departments and financial institutions to strengthen coordination, and implemented precise policies to promote the close integration of benefiting the people's livelihood and promoting consumption, forming a greater working force to boost and expand consumption.

2、 Key measures of the Notice

The notice proposes 11 policy measures in 3 aspects. One is to deepen cooperation between the business and financial systems. Promote local relevant departments to strengthen communication, exchange, and division of labor cooperation, encourage localities with conditions to improve communication and cooperation mechanisms, strengthen the joint efforts of fiscal funds, credit funds, and social capital, refine and implement specific implementation rules, and jointly play a good policy "combination punch". The second is to increase financial support in key areas of consumption. Encourage financial institutions to optimize financial product services, strengthen the connection between supply and demand, improve the adaptability of commodity and service consumption, promote the development of new consumption according to local conditions, support the construction of new forms, models, and scenarios of consumption, and implement and refine various financial support measures around the five key areas of upgrading commodity consumption, expanding service consumption, cultivating new types of consumption, innovating diversified consumption scenarios, and assisting consumption assistance. The third is to expand the connection and cooperation between government, finance, and enterprises. Encourage the use of "government, finance, and enterprises" to expand consumption synergy, carry out multi-level, multi-channel, and diversified consumer promotion activities and information sharing, provide accurate docking services, make full use of relevant policy dividends, and better meet the needs of relevant business entities and consumers.

3、 Main features of the Notice

One is to adhere to goal orientation and problem orientation. Deeply understand the situation from local relevant departments, financial institutions, and enterprises, summarize the experience and practices of 37 local business regulatory departments and 6 representative financial institutions in boosting consumption, analyze the bottlenecks that restrict the release of consumption potential, and propose targeted policy measures. The second is to adhere to systematic thinking. Strengthen the normalized communication and exchange between the business and financial systems, encourage the strengthening of policy coordination, work integration, and information sharing, coordinate the planning of existing and incremental policy measures, leverage the effects of various policy combinations, and gather greater work force. Thirdly, we must adhere to adapting measures to local conditions. Encourage local relevant departments and financial institutions to refine support measures based on actual conditions, carry out work according to local conditions and circumstances, form distinctive experience and practices, strengthen publicity and guidance, and replicate and promote.

Next, the Ministry of Commerce will work with the People's Bank of China and the State Administration for Financial Regulation to guide relevant departments and financial institutions in various regions to strengthen cooperation, promote the implementation and effectiveness of relevant measures, and provide greater support for benefiting people's livelihoods and boosting consumption, making positive contributions to a good start to the 15th Five Year Plan.