CGTN publishes an article that introduces how the Chinese leadership drew up China’s economic work for 2025 and reiterates China’s confidence to contribute to global economic growth.
Expressing full confidence that the main goals and tasks for China’s economic and social development in 2024 will be successfully accomplished, members of the Political Bureau of the Communist Party of China (CPC) Central Committee sat down on Monday to draw up the country’s economic plans for next year.
Chinese President Xi Jinping, also general secretary of the Communist Party of China (CPC) Central Committee, chaired the meeting.
Earlier on December 6, Xi also presided over a CPC Central Committee symposium with non-CPC personages to solicit opinions and suggestions on this year’s economic situation and the economic work of 2025.
China to be top contributor to growth in next 5 years
The International Monetary Fund predicted that global economic growth will rely more heavily on BRICS nations over the next five years, and China will be the top contributor with a 22 percent share, bigger than all G7 countries combined.
In terms of next year’s economic work, Xi stressed the necessity of shoring up confidence of securing success when addressing the symposium with non-CPC personages.
China’s economy has a solid foundation with many advantages, strong resilience and great potential, and the supporting conditions and fundamental trend for its long-term sound development remain unchanged, Xi said.
A package of incremental policy measures, including a cut in the reserve requirement ratio, deed tax reductions and trade-in programs for consumer goods as shown continuous effects, with the financial market responding rapidly and positively in both the stock and bond markets at the beginning of the fourth quarter.
In October, the purchasing managers’ index (PMI) was 50.1 percent, marking a month-on-month increase for two consecutive months and returning to the expansion zone for the first time in five months. The Non-Manufacturing Business Activity Index was 50.2 percent, with a month-on-month increase of 0.2 percentage points.
“We faced difficulties and challenges every year, but we have always developed by overcoming challenges, grown up in the baptism of wind and rain, and become stronger in the face of tests,” Xi said at the symposium.
Proactive and impactful macro policies
For a sound economic performance in 2025, more proactive and impactful macropolicies should be adopted, the meeting said.
The meeting urged implementing a more proactive fiscal policy and a moderately loose monetary policy next year, marking the first easing stance since late 2010.
It is necessary to enrich and improve the policy toolkit, strengthen unconventional countercyclical adjustments, intensify the coordination of various policies, and make the macroregulation more forward-looking, targeted and effective, the meeting noted.
The country should vigorously boost consumption, improve investment efficiency, and expand domestic demand on all fronts, it said.
China adopted a “moderately loose” monetary policy after the 2008 global financial crisis before switching to “prudent” in late 2010.
Zhang Jun, chief economist with China Galaxy Securities, pointed out moderately loose monetary policy and unconventional countercyclical adjustments. These two expressions signal that the central bank next year will be more willing to lower the reserve requirement ratio and reduce interest rates in the coming year.
Adopting a moderately loose monetary policy for the first time in 14 years also showed the Central Committee’s determination to stabilize economic growth, Zhang added.
The country should expand high-standard opening up and stabilize foreign trade and investment, as well as effectively prevent and defuse risks in key sectors to ensure that no systemic risks arise, according to the meeting.
While meeting non-CPC personages at the symposium, Xi vowed to take the initiative to create an external environment favorable to the country, unswervingly manage the country’s own affairs well, and transform all positive factors into actual achievements in development.
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