Page 2 - REPORT ON THE WORK OF THE GOVERNMENT

to our response approaches. We improved routine control mechanisms and
effectively suppressed several local outbreaks of the epidemic. With these actions,

we protected the health and safety of the people to the greatest extent possible, and
created the conditions for returning to normal life and work.
Last year, we carried out the following work in implementing the decisions
and plans of the Party Central Committee, and to respond to Covid-19 and
advance economic and social development:
1. We formulated and implemented macro policies to meet the urgent needs of
market entities and kept the fundamentals of the economy stable.
Facing shocks of a severity rarely seen before, based on what we had done to
ensure stability on six key fronts, we carried out the task of maintaining security in

six key areas—particularly job security, basic living needs, and the operations of
market entities. By maintaining security, we were able to deliver stability while
*
also pursuing progress.
Based on China’s realities, we refrained from adopting a deluge of strong
stimulus policies but took swift, decisive and well-considered steps, thus
maintaining a desired balance between various macro policies.

Using approaches of reform and innovation, we eased the difficulties of our
enterprises and energized them. And we helped micro, small, and medium
enterprises (MSMEs) and self-employed individuals, which are large in number,
extensive in scope and took the most direct hit from Covid-19, weather what was a
very tough time.
By making both time-limited large-scale tax and fee cuts and institutional
arrangements, we reduced the burden on market entities by more than 2.6 trillion
yuan for the year, including 1.7 trillion yuan in social insurance premium cuts and

exemptions.
We adopted new approaches in implementing macro policies. The central
government established a mechanism to directly allocate two trillion yuan of new

funding to prefecture- and county-level governments, while provincial-level
governments also increased their funding allocations to governments at these
levels. With these two steps, we provided prefecture- and county-level
governments with additional and timely fiscal resources to assist local businesses
and residents.

* The six fronts refer to employment, the financial sector, foreign trade, foreign investment,
domestic investment, and expectations. The six areas refer to job security, basic living needs,
operations of market entities, food and energy security, stable industrial and supply chains, and the
normal functioning of primary-level governments.
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