Commentary: Chinese economy gaining momentum with robust policy backing

(Xinhua) 09:26, December 14, 2023

BEIJING, Dec. 13 (Xinhua) -- With a tone-setting conference mapping out priorities for its economic work in the coming year, China has unequivocally signaled its capability and confidence in confronting challenges on the path to securing stronger growth momentum.

During the annual Central Economic Work Conference which concluded on Tuesday, policymakers underscored the country's dedication to boosting economic vitality, preventing and mitigating risks, improving social expectations, and consolidating and promoting the momentum of economic growth next year.

In the face of rising complexity and uncertainty in the external environment and arduous tasks in promoting reform, development and stability at home, the meeting pointed out that China still has to overcome some difficulties and challenges to further revive its economy.

From introducing more policies that help stabilize expectations, growth and employment to strengthening the consistency of macroeconomic policy orientation, the measures laid out at the conference were targeted and forceful.

Policy priorities were outlined in nine major areas including sci-tech innovation, reforms, domestic demand and opening up, providing comprehensive solutions to both short-term and longer-range problems in the economy.

The messages emanating from the conference demonstrated the clear-headedness of the country's leadership as well as their prowess in managing the overall economic situation.

The Chinese economy has secured steady growth throughout 2023, expanding 5.2 percent year on year in the first three quarters, outpacing other major economies globally and remaining on track to achieve its growth target of around 5 percent for this year.

This hard-earned upturn served as strong evidence of how effective China's policy maneuvering was in response to headwinds both at home and abroad. Despite certain difficulties and challenges, such as lack of effective demand and lackluster social expectations, there are good reasons to remain optimistic about the country's economic governance.

Stressing high-quality development, the meeting underscored the role of sci-tech innovation in building a modern industrial system, arranged a slew of policies to expand domestic demand, and planned deepened reforms related to state-owned enterprises and the private economy.

It also urged active and prudent efforts to defuse risks in the property sector, a traditional cornerstone of the Chinese economy, offering recipes including equally meeting the reasonable financing needs of real estate enterprises with different ownership forms.

All these arrangements have responded to key problems facing high-quality development and provided clear solutions for these problems, showing that policymakers are solution-oriented, pragmatic and forward-looking, which will serve as a shot in the arm for economic growth.

There are abundant grounds for confidence. The fundamental positive trend of the Chinese economy has not changed, as shown by rebounding consumer spending, stable employment, growing resident income, improving foreign trade, expanding industrial production and a robust high-tech sector.

In recognition of the economy's sound revival, international organizations such as the International Monetary Fund and the Organization for Economic Cooperation and Development recently raised their growth forecasts for China, citing favorable prospects.

Despite domestic and external uncertainties, China possesses numerous advantages that help solidify its long-term positive economic fundamentals, including an enormous consumer market, a well-rounded industrial system, increasing openness to the world, and adequate macroeconomic policy space.

With its immense potential and sound governance, the Chinese economy is poised to navigate all twists and turns on the road to prosperity and steer toward a brighter future.

(Web editor: Zhang Kaiwei, Liang Jun)


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