China to keep economy stable with proactive fiscal policy

China will keep its economy on a stable and healthy development track with a proactive fiscal policy and prudent monetary policy in the second half of 2018, according to a meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee on Tuesday.

The meeting, presided over by Xi Jinping, general secretary of the CPC Central Committee, stressed that China will maintain the basic tone of “seeking progress while maintaining stability” for its economic work and allow the economy to continue to perform within a reasonable range, according to a report in People’s Daily yesterday.

Efforts should be made to push supply-side structural reform and win the “three tough battles,” according to a statement released after the meeting.

China’s economy has maintained steady growth with good momentum in the first half year, according to the statement.

However, the economy still faces some new challenges and the external environment has changed notably.

China should focus on the “principal contradiction” and take targeted measures to solve it, the statement said.

The country will continue to implement a proactive fiscal policy and prudent monetary policy while making policies more forward-looking, flexible, and effective.

Fiscal policy should play a bigger role in expanding domestic demand and structural adjustments.

China will maintain control over the floodgates of monetary supply and keep liquidity at a reasonable and ample level.

Efforts should be made to keep employment, the financial sector, foreign trade, foreign and domestic investments, and expectations stable.

The legitimate rights of foreignfunded companies in China will be protected, according to the statement.