Resolve for high-quality growth tops the agenda
Tenacity is the term President Xi Jinping used in his keynote speech at the Central Economic Work Conference on Friday to emphasize how China’s economy can maintain its momentum. And despite the risks and uncertainties the Chinese economy faces at home and abroad, the conference said the prospects of better quality economic development and social progress are high.
The economic situation at home and abroad could not have been more complicated and difficult. The trade frictions with the United States, drop in commodity prices and slower global growth among others have taken a toll on the economic growth of many countries including China.
That China has maintained healthy economic growth has helped it to cope with the external challenges, realize the goals of macro-regulation relatively well, and make excellent progress in the battles against major risks, poverty and pollution.
Since the focus on high-quality growth has paid high dividends, promoting high-quality development of manufacturing will be beneficial to overall economic growth.
The steady increase in investment in manufacturing, services, high-tech and equipment producing industries, along with the low unemployment rate speak volumes of the tenacity of China to maintain stable and quality growth.
True, China has enough reason to be optimistic about its economy, not least because globalization will continue to expand despite some countries’ protectionist and unilateral trade policies. But having a window of opportunity for development is one thing, seizing it is another. Cautious optimism is therefore called for, especially because getting the governments at all levels to implement all the policies to the letter is not an easy task.
Which is important given the framework for the economic growth plan for next year emphasizes that fiscal stimulus will come from local governments and monetary policy through direct financing to private enterprises, especially small and medium-sized enterprises.
Domestically, as long as China continues to upgrade its economic structure for quality growth — driven by innovations in science and technology, and further tapping of various sectors’ potential — its development will continue to offer opportunities for the Chinese economy as well as other economies.
But to tap the potential for development by furthering reform and opening-up, local governments need to locate where the benefits of reform and local residents’ interests converge and how the latter can be mobilized to push ahead reform. As such, tenacity will help China maintain steady and healthy growth provided all the local leaders sincerely and honestly implement the policies in the way they should.