Financial Instruments of China’s Macroeconomic Policy: Theoretical and Applied Aspects

Abstract

Introduction. The formation of a digital society leads to radical changes in the reformatting of economic processes in China both on a national and global scale. The scientific discourse on the goals of sustainable development, political and financial stability and financial instruments of macroeconomic policy is being updated, taking into account various scenarios of geoeconomic transformations. Models of recovery and development of the Chinese economy require coordination of government, business, and civil society activities to improve the investment climate and qualitative change in management approaches in macroeconomic policy, taking into account the trends of green economic development. Purpose. Deepening the theoretical and applied foundations of China’s political and financial pragmatism, incorporated into the available financial instruments of macroeconomic policy, industrial and intellectual capabilities, which provides freedom of maneuver in the multilateral format of interstate relations. Results. The theoretical and conceptual foundations of political self-sufficiency, the multifaceted policies of subjectivization and regionalism, the vulnerability of economic and security dependence, and China’s focus on the policy of economic diversification to strengthen its domestic economic potential are summarized. The features of China’s economic and social development are analyzed, taking into account the synergistic effect achieved in the implementation of financial and monetary policy, the activation of unity in the planning of political measures, the stimulation of increased investment, consumption and support of domestic demand. Geopolitical pragmatism, independence from external influences, focus on prioritizing national interests with the help of adaptability of financial instruments of macroeconomic policy, taking into account the effects of “combined political measures” are revealed. Prospects. The goals of sustainable development of the People’s Republic of China coordinate the activities of the government, business and civil society. The goals of economic growth affect the economic management of local authorities and the development of the urban green economy. The recovery of the economy and the application of appropriate financial instruments of macroeconomic policy are aimed at stopping the outflow of capital from the country and should pave the way for China to “lead the outperformance of developed markets.” New political attitudes in the areas of macroeconomic policy implementation will contribute to the development of China’s corporate bond markets, overcoming debt evasion, commercialization of the banking sector, and the use of alternative form factors. The new historical realities of government self-governance require compliance with the development of public finances, since excessive expansion of “self-governance” can negatively affect financial security and “high-quality” development of the economy. In the modern economy, the influence of uncertainty on the adaptability of financial instruments of macroeconomic policy, on direct foreign investments is actualized, therefore the application of open economy models that take into account uncertainty is timely to guarantee financial security and preserve channels for attracting additional investments.