Page 33 - REPORT ON THE IMPLEMENTATION OF THE 2022 PLAN FOR NATIONAL ECONOMIC AND SOCIAL EVELOPMENT AND ON THE 2023 DRAFT PLAN FOR NATIONAL ECONOMIC AND SOCIAL EVELOPMENT

Third, risks in major fields are prone to becoming interwoven and amplifying
each other. Financial risks are on the rise, and fluctuations in global financial

markets are intensifying. Cross-border, cross-market, and cross-sector risks have
become more interrelated. Some local governments are finding economic recovery
difficult and are facing prominent fiscal imbalances. Debt risks from local
governments’ financing platforms need to be addressed immediately. Social
governance needs to be further improved, ensuring workplace safety remains a

serious challenge, and risks from extreme weather events, floods, droughts, and
other natural disasters still exist.
Fourth, there are still some weaknesses in areas related to the people’s
wellbeing. Given the pressure on aggregate job creation, related structural

problems, and a record high in the number of college graduates, the employment
situation for key groups remains grave. Personal income growth has slowed and is
difficult to sustain. There are still supply shortages in education, medical services,
childcare, elderly care, and housing. Access to basic public services needs to be
made more equitable. The foundations for sustained improvements in our

country’s environment, including in our air, water, and soil, have yet to be
consolidated, and our environmental infrastructure still needs to be strengthened.
Fifth, market expectations are still unstable. Enterprises, especially MSMEs, are
facing many difficulties in production and business operations. People are cautious

in spending, and a lack of enterprise confidence paired with sluggish market
demand may weaken economic flows.
In addition, we need to do a better job coordinating multiple targets and
policies; our capabilities to grasp long-term trends during short-term fluctuations,
to resolve dilemmas in the course of development, and to promptly address major

problems and risks in complex situations need to be strengthened; pointless
formalities and bureaucratism remain rather pronounced; one-size-fits-all
approaches and unrealistic attitudes can still be found; and there are still some
weak links in how we are responding to the impacts of the epidemic.

While facing difficulties and challenges head-on, we should also be keenly
aware that China’s economy is resilient, full of potential, and dynamic; that it has
become increasingly able to survive, compete, and maintain sustainable
development; that the fundamentals for long-term economic growth have not
changed; and that the necessary factors of production for high-quality

development have not changed. We now have stronger institutional

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