China's top economic conference sends positive signal for 2024

Customers shop at a supermarket in Anshun city, southwestern China's Guizhou province, on Dec. 9, 2023. [Photo/Xinhua]

Scholars and entrepreneurs said the latest Central Economic Work Conference has sent a strong positive signal to the Chinese economy in 2024, heralding a number of policies aimed to spur the world's second largest economic powerhouse.

The two-day meeting, held from Monday to Tuesday, mapped out China's economic priorities for the next year.

The conference called for the introduction of more policies that will help stabilize expectations, growth, and employment. It also underscored the need for enhancing counter-cyclical and cross-cyclical adjustments in macroeconomic policies and the continuous implementation of a proactive fiscal policy and a prudent monetary policy, according to a statement released after the conference.

In particular, the meeting called for efforts to "pursue progress while ensuring stability, and consolidate stability through progress," according to the statement released by Xinhua News Agency.

Dong Yu, executive vice president of the China Institute for Development Planning at Tsinghua University, said statements like this have indicated a new and dynamic approach to economic stability. "The country aims to tackle challenges and bolster confidence through development, facilitated by more proactive policies," he said.

Dong said the meeting focused not only on the continuation of proactive fiscal and prudent monetary policies, but also on the consistency of economic and non-economic policies.

"There should be increased coordination and cooperation of fiscal, monetary, employment, industrial, regional, science and technology, environmental protection, and other policies ... to create synergies," according to the meeting readout.

"There will be more concerted efforts to develop the economy next year, which is a most clear and positive signal to the market," Dong added.

Zhang Liqun, a researcher at the Development Research Center of the State Council, agreed with these sentiments. He said the conference has highlighted the need to further strengthen the internal driving force of China's economy, adding that more supportive policies will be unveiled next year.

Zhang said the key to next year's economy is to boost domestic demand through investment and consumption as well as the interplay between the two fronts. He said for example, more effective investment is needed to spur business activities, which will create more jobs and thus raise people's income. This will in turn boost consumption and eventually shore up the economy.

He said government investment is vital for areas such as post-disaster reconstruction, infrastructure construction, and spending on education and healthcare, among others.

"In addition to a more proactive fiscal policy, the central government should increase treasury bonds and support local government in these investments through transfer payments," Zhang said.

The meeting highlighted nine pivotal areas for next year's economic agenda, including promoting the construction of a modern industrial system, expanding domestic demand, deepening reforms in key areas, promoting high-level opening-up, and preventing and defusing major risks.

Xu Yongming, founder of Huanyue Technology and former vice president of iQIYI, said he is particularly impressed with the plan of building a modern industry system through technological innovation, especially the development of disruptive and cutting-edge technologies to spawn new industries, growth models, and growth engines. He noted that it is imperative for China to achieve core technological breakthroughs independently, given the backdrop of some foreign restrictions.

He also emphasized the statement's focus on further opening-up. "China has benefited from globalization and free trade, while being a key contributor to the global economy. Intensifying efforts in reform and opening-up is not only conducive to China's own development but also manifests its commitment to fostering global growth," he said.