At the recent Central Economic Work Conference held in Beijing, senior Chinese officials expressed strong confidence in the nation’s economic trajectory, outlining ambitious plans to sustain growth and address challenges in 2025.
Zhao Chenxin, deputy head of the National Development and Reform Commission, hailed 2024 as an “extraordinary year with encouraging achievements” during a forum on Saturday. He highlighted positive changes since September, noting “notable improvements in expectations and better performances of major economic indicators” at the event hosted by the China Center for International Economic Exchanges (CCIEE).
Han Wenxiu, executive deputy director of the Office of the Central Committee for Financial and Economic Affairs, projected that China’s economy would expand by around 5 percent this year, contributing nearly 30 percent to global economic growth. “Employment and prices have remained stable, international payments are balanced, and foreign exchange reserves have stayed above $3.2 trillion,” Han stated.
Despite these positive trends, officials acknowledged ongoing difficulties. Zhao pointed to a “complicated and grim external environment,” insufficient domestic demand, and pressures on employment and income growth. In response, policymakers have outlined a series of measures to tackle these challenges.
“Efforts should be made next year to implement more proactive and impactful macro policies,” Zhao emphasized. The strategies include expanding domestic demand, promoting the integrated development of scientific and technological innovation with industrial innovation, stabilizing real estate and stock markets, preventing risks in key areas, and stimulating vitality.
The conference signaled a shift towards stronger counter-cyclical adjustments. Han noted the adoption of a more proactive fiscal policy and a moderately loose monetary policy for 2025, indicating “more robust policy support for achieving annual targets.”
Wang Yiming, vice chairman of the CCIEE, elaborated on fiscal measures, stating that China will set a higher deficit-to-GDP ratio, strengthen fiscal spending, increase the issuance of ultra-long special treasury bonds and local government special bonds, and optimize fiscal expenditure structures.
From a monetary perspective, Wang Xin, head of the Research Bureau of the People’s Bank of China, indicated plans to reduce the reserve requirement ratio (RRR) and interest rates at appropriate times. “The monetary measures will promote stable economic growth, stable employment, and reasonable price rebounds,” Wang said, noting that the current average RRR for financial institutions stands at 6.6 percent, suggesting room for reduction.
The conference unveiled key tasks in nine areas for 2025, ranging from expanding domestic demand to effectively preventing and defusing risks in key sectors. Vice Commerce Minister Sheng Qiuping announced special campaigns to stimulate consumption and unleash potential, including promoting consumer goods trade-ins and fostering new consumption models. “The national trade-in program has driven up consumption by over 1 trillion yuan (about $140 billion),” Sheng highlighted.
Addressing the real estate sector, Dong Jianguo, vice minister of housing and urban-rural development, reported that 3.24 million new homes had been delivered as of November under a nationwide program to assist developers, significantly improving market sentiment. Efforts will continue next year to renovate shanty towns and dilapidated houses, and to meet the demands of people buying their first homes or improving their housing conditions.
Dong called for a transition from speed to quality in the real estate sector, emphasizing the construction of safe, comfortable, green, and intelligent homes. “We aim to meet people’s demands for high-quality residences and foster a new development model for the real estate sector,” he stated.
As China navigates the complexities of the global economic landscape, these strategic initiatives underscore the government’s commitment to sustaining growth and enhancing the well-being of its people.
Reference(s):
Senior officials' insights about China's key economic work conference
cgtn.com
