Core Insights - The report highlights the rapid development of the computing power economy in China, emphasizing its role as a new productive force in the digital age and its significance in driving the digital economy towards higher levels of growth [1] Supply and Demand Dynamics - On the demand side, technological advancements and deeper applications are driving continuous growth in computing power demand, with data production expected to reach 41.06ZB in 2024, a 25% year-on-year increase [2] - On the supply side, China's computing power supply capacity is continuously enhancing, with the number of standard racks in computing centers reaching 10.431 million by March 2025, reflecting significant progress in infrastructure [2] - The intelligent computing scale reached 748 EFlops (FP16) by March 2025, with an average growth rate of 49% over the past five years, indicating a strong push towards diversified computing supply [2] Impact on GDP - The growth of computing power has a positive effect on GDP, with a 1% increase in computing power scale corresponding to a 0.426‰ increase in GDP [3] - The impact of computing power on GDP varies by region, with lower GDP areas requiring significant investment for computing power to yield noticeable results, while higher GDP areas can achieve exponential output increases from computing investments [3] Policy Implications - Computing power policies have a long-term driving mechanism for GDP growth, with selected cities for data center clusters seeing a 1% increase in computing power scale leading to an additional 0.109‰ GDP growth [4] - The effectiveness of computing power policies is universal across different regions, influencing economic growth mechanisms regardless of geographic location [4] Need for Policy Improvement - The computing power economy in China is still in its early stages, facing challenges such as inadequate top-level design and the need for exploration of local models [5][6] - Recommendations include enhancing top-level design, optimizing the computing power policy system, and encouraging local exploration of unique computing power economic models [6] - Emphasis is placed on strengthening technological research and development to improve self-innovation capabilities and enhancing the enabling role of computing power across various industries [6]

Core Viewpoint - The Federal Reserve is gradually opening the door to interest rate cuts, with a new monetary policy framework that emphasizes flexible inflation targeting and acknowledges the challenges in measuring full employment [2][4]. Group 1: Federal Reserve's New Framework - The new framework indicates a shift away from fixed employment targets, recognizing that full employment is not directly measurable and varies over time [2]. - The Federal Reserve's adjustment is partly a response to recent revisions in employment data by the Bureau of Labor Statistics, which has raised questions about the credibility of employment statistics [2][3]. - The framework retains the complementary assumption between employment and inflation targets, allowing for some discretionary power in policy decisions [4]. Group 2: Impact of Digital Technology - Digital technology is changing the transmission mechanisms of monetary policy, complicating the speed and boundaries of policy effects [3]. - The emergence of decentralized stablecoins is altering the medium and ecosystem of currency transmission, increasing the costs for the Federal Reserve to track and analyze monetary flows [3]. Group 3: Global Market Implications - The non-typical interest rate cuts by the Federal Reserve may have different impacts on global financial markets due to the evolving global economic structure [4][5]. - The effects of rate cuts will not be uniform across global markets but will depend on the correlation of countries' economic relationships with the U.S. and their acceptance of dollar-based stablecoins [5]. - Countries need to adapt their risk management strategies in response to the changes brought about by the Federal Reserve's policy adjustments and the influence of new technologies [5].

Group 1 - The Federal Reserve is gradually opening the door to interest rate cuts, with a new monetary policy framework emphasizing flexible inflation targeting and abandoning the previous compensatory inflation strategy [1] - The adjustment in the monetary policy framework is partly a response to unprecedented revisions in recent employment data by the U.S. Bureau of Labor Statistics, raising questions about the credibility of employment data [1][2] - The new framework retains the complementary assumption between employment and inflation targets, allowing the committee some discretion in policy evaluation, which may lead to uncertainty and instability in decision-making [3] Group 2 - The current environment of uncertainty for the Federal Reserve is influenced by potential data distortions in employment statistics and price indices, necessitating a clear response in the new monetary policy framework [2] - Digital technology is transforming the transmission mechanisms of monetary policy, complicating the speed and boundaries of policy effectiveness, which requires the Federal Reserve to adapt its support framework accordingly [2] - The emergence of decentralized stablecoins is shifting some monetary policy functions from the Federal Reserve to the U.S. Treasury, challenging the traditional belief in the independence of central bank monetary policy [2] Group 3 - The impact of the Federal Reserve's interest rate cuts on global financial markets may differ from the past due to the restructuring of the global economic system, with liquidity primarily affecting new U.S. trade scenarios and stablecoin dynamics [3][4] - The influence of Federal Reserve rate cuts on global markets will not be uniform but will depend on the correlation of countries' trade relations with the U.S. and their acceptance of dollar-based stablecoins [4] - Central banks worldwide are prompted to rethink their traditional policy frameworks in light of new technologies and transmission mechanisms, facing challenges posed by these innovations [4]

Core Viewpoint - The dual drive of activating consumption potential and optimizing enterprise operational efficiency is essential for consolidating development momentum, requiring both strategic determination from top-level design and practical wisdom from grassroots exploration [1][4]. Group 1: Consumption and Industry Synergy - Under the guidance of new development concepts, China has promoted deep coupling of consumption upgrades and industrial transformation through institutional innovation and technological change, forming a dynamic balance mechanism of demand and supply with Chinese characteristics [2]. - The "old-for-new" policy has seen significant uptake, with 3.225 million applications for vehicle subsidies by May 11, 2025, indicating that fiscal subsidies can stimulate consumption demand while pushing enterprises to enhance supply quality [2]. - E-commerce platforms have significantly contributed to consumption growth, with online retail sales reaching 4.411 trillion yuan in the first four months, a year-on-year increase of 11.5%, demonstrating the effectiveness of digital technology in enhancing supply-demand matching efficiency [2]. Group 2: Digital Transformation in Supply Chain - The digital transformation of the modern circulation system has restructured supply-demand matching models, enhancing the efficiency of dual circulation in agricultural and industrial products through institutional innovation [3]. - The construction of a smart logistics system has reduced operational costs for enterprises while improving consumer experience, thereby supporting consumption upgrades and industrial transformation [3]. - A full-chain collaborative mechanism driven by demand perception, R&D design, flexible production, and precise delivery has been established, enhancing the agility of enterprises in responding to market changes [3]. Group 3: Institutional Innovation for Dual Drive - A comprehensive approach is needed to stimulate consumption, focusing on demand, supply, environment, and policy, with a goal to create a virtuous cycle between consumption demand and production supply [4]. - The optimization of consumption supply structure and the integration of digital technology with traditional industries are crucial for developing new business formats and growth points [4]. - Establishing a unified market access and fair competition mechanism is essential to stimulate the intrinsic motivation of enterprises and promote equal access to various business sectors [4]. Group 4: Financial Support for Real Economy - Addressing financing difficulties for small and medium-sized enterprises through the development of inclusive finance and innovative financing models is critical for optimizing capital allocation [5]. - Financial institutions are encouraged to adopt differentiated credit policies to support advanced manufacturing and strategic emerging industries with long-term financing [5]. - Strengthening financial regulation and establishing a firewall between industrial and financial capital can help mitigate systemic financial risks [6].