Proactive, pragmatic policies to guide growth

China's annual agenda-setting economic conference concluded on Thursday with a statement meant to soothe market concerns over the outlook for the tapering economy.

The main economic targets for 2014 are expected to be hit "relatively well," said a statement issued at the end of the Central Economic Work Conference (CEWC).

The tightly watched GDP growth target for 2015, which is usually not made public until March when the country's annual legislative and advisory sessions are held, was not revealed in the statement.

At the three-day meeting, policymakers who were discussing economic priorities for the coming year placed striving to maintain steady economic growth atop the list of five major economic goals for 2015, according to the statement. Second on the list is exploring new economic growth engines.

The tone of this year's CEWC was similar to last year's, with the leadership pledging to seek steady growth and stick to a proactive fiscal policy and prudent monetary policy.

However, the statement said "the fiscal policy should be stronger and the monetary policy should be more pragmatic," which market watchers say hints toward more robust measures next year to stimulate the flagging economy.

Xu Hongcai, director of the Department of Information under the China Center for International Economic Exchanges (CCIEE), told the Global Times Thursday that China's economy is expected to expand at 7.3 or 7.4 percent in 2014, a level that is still consistent with the official full-year target of around 7.5 percent set in March.

Fixed-assets investment, a key driving force of China's economic growth, is projected to increase by 15.6 to 15.8 percent in 2014 from the previous year, thus likely to miss the target of 17.5 percent, Zhou Hao, an economist at the Australia and New Zealand Banking Group, told the Global Times on Thursday.

But the overall growth target looks set to be largely met, noted Zhou.

"There are concerns about whether China's economy would expand below 7 percent in 2015 as it still faces downward pressures, but the statement which lists stabilizing economic growth as the primary task gives the market more confidence and we now predict the economy will expand above 7 percent next year following potential stimulus policies," Lian Ping, chief economist of the Bank of Communications in Shanghai, told the Global Times on Thursday.

A more proactive fiscal policy shows the central government may incur more debt in 2015 and increase the possibility of interest rate cuts with a more pragmatic monetary policy, Lian said.

Holding similar viewpoints, Tian Yun, an economist with the China Society of Macroeconomics affiliated to the National Development and Reform Commission, told the Global Times Thursday that investment in domestic infrastructure projects and overseas projects with the implementation of the "One Belt and One Road" (Silk Road Economic Belt and the 21st Century Maritime Silk Road) will spur economic growth next year.

The grand strategy of "One Belt and One Road" was proposed by President Xi Jinping in 2013.

The statement is not only seen as having assured markets of sustained growth, but giving fresh vigor to innovation.

China will continue targeted and structured control policies to maintain a medium- to high-speed economic growth, the statement said. It will actively adapt to the economic new normal of slower speed but higher quality.

Among the nine characteristics summarized in the statement as representing the new normal, doing away with waves of copycat consumption and embracing personalized and diversified consumption is already taking hold in the mainstream.

As the consumption wave involving household appliances, mobile phones, computers and automobiles during the past decades comes to an end and the market of traditional consumer goods nears saturation, the demand for consumption will be more diversified and personalized in the future, said Lian of the Bank of Communications.

Deepening economic reforms were also highlighted at the CEWC, with the statement saying market access in the services sector will be improved and manufacturing sectors will be further opened up. The China (Shanghai) Pilot Free Trade Zone will be further promoted.

In addition, reforms will be ramped up in administrative approvals, investments, pricing, monopolies, franchising, government purchased services, and overseas investment next year.

Xinhua contributed to this story

Next year's primary economic goals:

1. Strive to maintain stable economic growth

2. Promote and nurture new growth engines

3. Quicken the transformation of agricultural development

4. Optimize economic development of various regions

5. Streamline work to improve people's lives 

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