Ten possible keys to securing a steady growth
The main task of domestic economy this year is undoubtedly maintaining a "steady growth". But how to achieve a "steady growth" under the keynotes of "houses are for living in，not for speculation"，"high-quality development"，and "supply-side structural reform as the main line"? What will be the focus of "steady growth"? We tried to make a more detailed discussion from the industry level by considering the information from the "14th Five-Year Plan" (representing the medium-term development plan)，the draft of the Central Economic Work Conference (representing the annual demands of the central government)，and the recent developments of ministries and commissions (representing the responses of ministries and commissions).
In our judgement，ten fields are worthy of our attention. They are the construction of affordable housing in real estate，the renewable energy construction and low-carbon transformation of traditional industries in energy revolution，the waste recycling system and agricultural machinery equipment in primary product guarantee，the moderately advanced infrastructure and the implement of major foreign investment projects in the expansion of domestic demand，logistics and small and medium-sized enterprises "specialization，refinement，differentiation，innovation" action and digital transformation in breaking the supply constraints.
It is expected that the demand increase brought by these ten fields will turn into keys for a "steady growth".
Key 1
Construction of affordable rental housing. According to statistics from the Ministry of Housing and Urban-Rural Development，about 2.4 million affordable rental housing units are expected to be built in 40 large and medium-sized cities this year. Guarantee measures at the fund level include special bonds，central financial support，and loan support. For example，recently，the China Banking and Insurance Regulatory Commission requested that the relevant loans issued by the affordable rental housing projects should not be included in the concentration management of real estate loans，so as to support the banking institutions to increase their support for the affordable rental housing.
Key 2
Renewable energy construction. It is expected that driven by the three favorable macro policies，high growth will be seen in the construction of renewable energy，with wind power and photovoltaics playing the key role. The three major policies are as follows.
At the planning level，efforts are made to promote the construction of large-scale wind and light bases and to develop whole-county rooftop distributed photovoltaics. Up till now，the first phase of the 100GW large-scale base project has started in the fourth quarter of last year，and the second batch of base projects are under preparation by the National Energy Administration. At present，some 676 counties have been included in the pilot project for whole-county rooftop distributed photovoltaic development.
Changes in the assessment caliber on the energy consumption side. With the newly added renewable energy consumption excluded from the energy consumption assessment，the average annual growth rate of renewable energy consumption is expected to increase from 7.4% to above 8% during the 14th Five-Year Plan.
Changes on the capital side. Carbon emission reduction support tools are launched by the central bank to ensure the security and supply of energy and the transformation to green and low-carbon industries. In addition，to deal with the new energy consumption，the continuous promotion of UHV construction is expected to usher in a big year of construction this year，witnessing an increase in the grid investment compared with last year.
Key 3
Low-carbon transformation of traditional industries. Low-carbon transformation of traditional industries consist of three aspects: clean production transformation，energy efficiency improvement，and clean and efficient utilization of coal. The clean production transformation mainly aims at six industries: steel，petrochemical，non-ferrous metal，building materials，textiles，and light industry. The goal of the policy is to complete the following goals by 2025: transformation of 530 million tons of steel production capacity with ultra-low emission，transformation of 460 million tons of coking production capacity with clean production，and transformation of 850 million tons of cement clinker with clean production. The energy efficiency improvement action is aimed at more than 20 high-energy-consuming industrial products such as oil refining，coal-to-coke，and coal-to-methanol. The policy target is to build the stock production capacity to above the benchmark level within three years，with 30 percent of the production capacity reaching the target level by 2025. Clean utilization of coal includes improving the selection rate of raw coal，reducing the coal consumption of power supply，building a modern coal chemical industry，and improving the utilization of coal mine waste as a resource.
Key 4
Waste recycling system. The outline of the "14th Five-Year Plan" calls for "100 demonstrations of comprehensive utilization of bulk solid waste". In December last year，the National Development and Reform Commission announced the list of 40 demonstration bases and 60 key enterprises for comprehensive utilization of bulk solid waste. The main financial guarantee measures include central special funds and central bank green bond.
Key 5
Agricultural machinery and equipment. China has always offered financial subsidies for agricultural machinery and equipment. From 2004 to 2020，the central government had invested a total of 239.2 billion yuan. Since the 18th National Congress of the Communist Party of China，subsidies for the purchase of agricultural machinery have increased significantly，with a cumulative investment of 186.3 billion yuan，an average of more than 20 billion yuan per year. Some 19 billion yuan was invested in 2021，2 billion more than in 2020.
In March 2021，a new round of subsidy policies was introduced.