Page 6 - 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

Our prudent monetary policy was flexible and appropriate, and ample
liquidity was maintained. Required reserve ratios were lowered twice to release

long-term liquidity supply. We fully leveraged instruments to support inclusive
loans to micro and small enterprises (MSEs) and carbon emissions reduction,
facilitated targeted relending for promoting cleaner and more efficient use of coal,
and introduced new structural monetary policy tools such as relending for sci-tech
innovation and targeted relending for transportation and logistics development

and for public-interest elderly care. In doing so, we scaled up support for key areas
and weak links in economic and social development. By the end of 2022, the
balance of China’s M2 money supply and aggregate financing had increased by
11.8% and 9.6% respectively year-on-year. New RMB loans for the year grew by

1.36 trillion yuan, and medium- and long-term loans to the manufacturing sector
increased by 2.56 trillion yuan over the beginning of the year. We took steady steps
to make the RMB exchange rate more market-based and kept it generally stable at
an adaptive, balanced level.
We strengthened macro policy coordination and took effective steps in

assessing consistency of orientation between newly issued policies and documents
and macro policies. We also made full use of macro policy coordination
mechanisms. All of this markedly improved policy coordination.
2) Greater efforts were made to help ease enterprises’ burdens and resolve their

difficulties.
In 2022, newly-introduced tax and fee cuts, tax refunds, and deferred tax and
fee payments exceeded 4.2 trillion yuan. Of this, value-added tax (VAT) credit
refunds surpassed 2.4 trillion yuan, new tax and fee cuts exceeded 1 trillion yuan,
and deferred tax and fee payments totaled over 750 billion yuan. We extended

policies to postpone certain tax payments for micro, small, and medium-sized
enterprises (MSMEs) and self-employed individuals in manufacturing and to
temporarily postpone the collection of certain administrative charges and
guarantee funds, among other supporting policies. We introduced targeted

measures to provide relief for businesses experiencing particular difficulty in
service industries such as catering, retail, tourism, and transportation as well as
businesses engaged in elderly care and childcare services. We allowed enterprises
in sectors facing difficulties to delay their contributions to social insurance
schemes.

We worked to ensure continuity and renewal of loans under the former two

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