China has unveiled its economic strategy for 2025 during the Central Economic Work Conference held from Wednesday to Thursday. The conference emphasized the implementation of more proactive and impactful fiscal policies in the coming year, with priorities including increasing the deficit-to-GDP ratio, implementing a moderately loose monetary policy, expanding domestic demand, and stabilizing the real estate and stock markets.
Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, Chinese president, and chairman of the Central Military Commission, delivered an important speech at the conference. In his address, Xi reviewed the country’s economic work in 2024, analyzed the current economic situation, and outlined plans for next year’s economic agenda.
The meeting noted that the Chinese economy has demonstrated generally stable performance while making progress in 2024, with solid advances in high-quality development. Major annual goals and tasks for economic and social development are expected to be successfully accomplished.
Despite challenges posed by changes in the external environment and domestic economic difficulties, the meeting emphasized that the fundamental trend of China’s long-term economic growth remains unchanged. “We must face up to the difficulties, strengthen our confidence, and strive to transform all positive factors into actual achievements in development,” the meeting stated.
Key Priorities for 2025
For the coming year, the conference highlighted the importance of maintaining steady economic growth, keeping employment and prices stable, ensuring a basic equilibrium in the balance of payments, and increasing residents’ income in step with economic growth.
Fiscal and Monetary Policies
The meeting called for a more proactive fiscal policy, setting a higher deficit-to-GDP ratio, and ensuring fiscal policies remain consistently forceful and impactful. It pledged to increase the issuance of ultra-long special treasury bonds and local government special-purpose bonds, as well as optimize the structure of fiscal expenditure.
A moderately loose monetary policy will be implemented, with reductions in the reserve requirement ratio and interest rates at appropriate times to ensure ample liquidity.
Boosting Consumption and Domestic Demand
The conference outlined vigorous efforts to boost consumption, improve investment efficiency, and expand domestic demand. A special campaign dedicated to stimulating consumption will be implemented, focusing on increasing incomes and alleviating the burdens of low- and middle-income groups. Programs to promote large-scale equipment upgrades and consumer goods trade-ins will be intensified.
Developing New Quality Productive Forces
China will prioritize scientific and technological innovation to drive the development of new quality productive forces and build a modernized industrial system. Efforts include forward-thinking arrangements for major technological projects, large-scale demonstrations for new technologies and products, launching an “AI Plus” initiative, nurturing future industries, and boosting strategic scientific and technological strength.
The meeting emphasized encouraging patient capital and attracting more social capital participation in venture capital. It also called for addressing irrational competition and regulating the behaviors of local governments and enterprises.
High-Standard Opening Up and Risk Prevention
The country aims to expand its high-standard opening-up policies and maintain stability in foreign trade and investment, including expanding pilot programs in sectors like telecommunications, healthcare, and education. The meeting also stressed the importance of effectively preventing and mitigating risks in key areas to ensure no systemic risks arise, particularly in the real estate market and local financial institutions.
Regional Development and Green Transition
Efforts will focus on coordinated progress in new urbanization and comprehensive rural revitalization while promoting integrated urban-rural development. The conference emphasized the need to advance the green transition across all areas of economic and social development, accelerate the construction of new energy bases in sandy areas, rocky areas, and deserts, and establish zero-carbon industrial parks.
Enhancing People’s Well-being
The meeting underscored the importance of securing and improving people’s well-being, implementing employment support plans, formulating pro-childbirth policies, developing community-supported at-home elderly care, and expanding universally beneficial elderly care services.
Reference(s):
cgtn.com
