Key economic meeting to project confidence amid daunting challenges

A meeting of the top decisionmaking body of the Communist Party of China (CPC) on Thursday has shown policymakers’ determination to continue longstated economic policies from structural reforms to growth stabilizing measures, projecting top leaders’ confidence in navigating through daunting challenges abroad and at home.

The meeting of the Political Bureau of the CPC Central Committee, which studied economic and other policies for 2019, made it clear that China will unswervingly push through its own economic agenda in spite of rising pressure.

The meeting, presided over by Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, concluded that China will adhere to the general theme of “making progress while ensuring stability,” while promoting high-quality growth, carrying out structural reforms and further opening the domestic market, according to Xinhua.

While the meeting noted deep changes in the global and domestic environment, it stressed that “China must strengthen its confidence, take the initiative and unswervingly do our own things,” Xinhua reported.

China will keep its economic growth within a reasonable range next year, and further support jobs, trade and investment, according to the meeting.

The meeting also offered clues for the upcoming annual Central Economic Work Conference, a closely-watched event to read cues for economic policies for the world’s second-largest economy.

A specific date has not been announced for the meeting, but markets already have their eagle eyes on any signs of potential policy shifts for the Chinese economy.

Analysts said on Thursday the meeting is likely to strike a confident tone and repeat previously announced policy initiatives, but there are specifics to watch out for, such as signs of a more aggressive fiscal policy and further tax cuts for corporations.

“The overall theme of this year’s meeting will likely remain the same: stabilizing the economy,” said Tian Yun, vice president of the Beijing Economic Operation Association. “The meeting will also focus on the three tough battles.”

China has identified three areas of challenges that it must address in order to pursue longterm growth: preventing and dissolving major financial risks, eliminating extreme poverty and reducing pollution, dubbed as the “three tough battles.” Thursday’s meeting also reaffirmed the continuation of these battles.