Set­ting the Agenda

Beijing Review - - EDITOR’S DESK -

The an­nual Cen­tral Eco­nomic Work Con­fer­ence held on De­cem­ber 19-21, 2018, in Bei­jing sum­ma­rized China’s eco­nomic work in 2018 and mapped out 10 key tasks that will top the coun­try’s eco­nomic agenda in 2019.

Ac­cord­ing to the con­fer­ence, China will con­tinue to pur­sue a proac­tive fis­cal pol­icy and a pru­dent mon­e­tary pol­icy, ad­here to the gen­eral prin­ci­ple of seek­ing progress while main­tain­ing sta­bil­ity, and deepen mar­ket re­form. It will also ex­pand high-level open­ing up, pro­mote high-qual­ity growth and strengthen the pro­tec­tion and im­prove­ment of peo­ple’s liveli­hood.

The con­fer­ence also noted that China is still, and will con­tinue to be for a long time, in an im­por­tant pe­riod of strate­gic op­por­tu­nity for de­vel­op­ment. This con­clu­sion was reached based on the fact that peace and de­vel­op­ment re­main cur­rent themes and glob­al­iza­tion will not be re­versed de­spite re­cent re­sis­tance. The new round of sci­en­tific and tech­no­log­i­cal revo­lu­tion and in­dus­trial trans­for­ma­tion needs the sup­port of huge mar­kets like China. In the mean­time, as China con­sis­tently ex­pands its open­ing up, other coun­tries hope to find more de­vel­op­ment op­por­tu­ni­ties in the coun­try.

Re­gard­ing the cur­rent eco­nomic si­t­u­a­tion, the con­fer­ence said that “there are changes amid sta­bil­ity and causes for con­cern amid changes,” which in­di­cated the Chi­nese Gov­ern­ment’s clear un­der­stand­ing of the do­mes­tic and in­ter­na­tional sit­u­a­tions. Glob­al­iza­tion and the free trade sys­tem are chal­lenged as pro­tec­tion­ism surges. The growth of China’s key eco­nomic indicators such as con­sump­tion and in­vest­ment show fluc­tu­a­tions; there­fore China still faces daunt­ing tasks in prevent­ing and dis­solv­ing risks.

The meet­ing also pro­posed to foster the trans­for­ma­tion from an open­ing up of com­modi­ties and pro­duc­tion el­e­ments to an in­sti­tu­tional type of open­ing up, in­di­cat­ing an­other ma­jor step in China’s open­ing-up process. The ap­proach used in the open­ing up of com­modi­ties and pro­duc­tion el­e­ments over the past four decades has fa­cil­i­tated the free flow of cap­i­tal and com­modi­ties through tar­iff re­duc­tions and pref­er­en­tial poli­cies. How­ever, as do­mes­tic and in­ter­na­tional cir­cum­stances change, the ef­fec­tive­ness of the old ap­proach is de­clin­ing. In or­der to im­prove the qual­ity of open­ing up, China needs to dove­tail do­mes­tic rules with in­ter­na­tional stan­dards and in­sti­tu­tion­al­ize some on­go­ing re­forms, such as the for­eign in­vest­ment neg­a­tive list.

As the un­cer­tainty and com­plex­ity of the world econ­omy in­creases, the Chi­nese econ­omy is des­tined to face more chal­lenges in 2019. At the same time, there are also many fa­vor­able fac­tors for eco­nomic growth. Hope­fully, the Chi­nese econ­omy will con­tinue to main­tain the sta­ble and rapid growth it has seen over the past years in 2019.

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.