We will comprehensively strengthen infrastructure development

Infrastructure must have a long-term goal. In the long run, the level of economic development and social civilization and progress achieved by socialism with Chinese characteristics will certainly be unprecedented, and this is also a solid foundation for the ultimate victory of the socialist system. Therefore, the vision of the construction of China's infrastructure system (including public service capacity) must lead the future era, and be able to guarantee long-term high standards and high levels. In the historical period after the founding of New China, all aspects of China's economic construction gave way to the foundation of industrialization, and the construction of infrastructure system (including public service capacity) lagged behind. After the reform and opening up, the economy has experienced sustained and rapid growth, and the construction of the infrastructure system (including public service capacity) is generally a "catch-up" development. The construction pattern dominated by local and urban governments has made the problem of unbalanced construction of the infrastructure system (including public service capacity) more prominent. At present, there is still a significant gap between China's infrastructure system (including public service capacity) and the world's major developed countries in terms of the rationality of the overall and long-term layout, the quality, full coverage and the same level of service guarantee. Compared with the goal of socialist modernization in our country, there is a bigger gap. We must have a strong sense of urgency and a spirit of lasting success. We must adhere to a people-centered development philosophy and a problem-oriented and goal-oriented approach. We must balance development and security, make systematic planning and coordinated efforts, accurately address weaknesses and strengths, improve the layout, structure, functions and development model of infrastructure, and mobilize all social forces to build a comprehensive modern infrastructure system. We will build socialist modern infrastructure projects.

Strengthening infrastructure construction in an all-round way is a key way to expand domestic demand

The contraction of demand is one of the important reasons for China's economic downturn. Strengthening infrastructure construction in an all-round way can effectively alleviate the contraction of demand in our country. Affected by the international financial crisis, the Sino-US trade war and other factors, China's export growth rate has dropped significantly. From 2010 to 2019, dollar export growth slowed from 31% to 0.5%. Affected by China's unbalanced economic development, especially the unbalanced promotion of urbanization, the growth rate of real estate investment has declined sharply. Big cities are overpopulated and small and medium-sized cities are underpopulated. It is difficult to get land in big cities and sell houses in small and medium-sized cities, which seriously restricts the development of real estate. From 2010 to 2015, real estate investment growth slowed from 33% to 1%. Because of the extensive and close relationship between real estate construction and manufacturing, it also caused a sharp decline in manufacturing investment. Between 2011 and 2016, the growth rate of manufacturing investment slowed from 30% to 2.8%. Real estate investment, together with manufacturing investment, accounts for about 50% of total investment, and its growth rate has declined sharply, which will inevitably lead to a significant decline in investment growth. From 2010 to 2016, the growth rate of fixed asset investment dropped from 23.8 percent to 7.9 percent. The decline in export and investment growth has significantly reduced business orders and reduced the operating rate, which in turn has reduced the economic growth rate. The accompanying decline in the growth rate of business income and resident income has led to a decline in the growth rate of consumption. From 2010 to 2016, the growth rate of retail sales of consumer goods dropped from 18.4 percent to 10.4 percent. This has formed a vicious circle of insufficient demand, reduced orders, reduced economic growth, reduced income growth in all aspects, and contracted demand, which has made China's economic growth rate continue to fall back. From 2010 to 2019, the growth rate of gross domestic product (GDP) dropped from 10.3% to 6%. Since 2020, the impact of the COVID-19 epidemic has further aggravated the contraction of demand. In response to the new downward pressure on China's economy in 2021, the Central Economic Work Conference pointed out that the current Chinese economy is facing three pressures: demand contraction, supply shock, and weakening expectations. The contraction of demand has become a prominent contradiction restricting the recovery of our economy. To deal with this problem of long accumulation time and strong internal convergence, we must take effective measures to actively expand demand. In the face of unprecedented changes in the world in a century and an unprecedented complex external environment, expanding demand must be based on domestic, we must rely on China's super-large domestic market. Therefore, expanding domestic demand is the key strategic arrangement to cope with the contraction of demand. There are two choices to expand domestic demand: first, consumption first or investment first; Second, whether people and enterprises should take the lead or the government should take the lead is a choice we must make to ensure steady employment and growth.