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China sets out plan for stability in 2022

China sets out plan for stability in 2022

China’s leaders have mapped out a strategy for the economy for the next 12 months, putting the focus on stabilising in the wake of the pandemic while at the same time pursuing growth.

Speaking at the annual Central Economic Work Conference in Beijing, President Xi Jinping, said action should be taken to safeguard macroeconomic stability, keep major economic indicators within the appropriate ranges and maintain social stability.

China had maintained a leading position in the world in terms of economic development, said a statement released after the meeting. However, it cautioned that China’s economic development is facing pressure from a fall in demand, supply shortages and declining confidence, with the external environment is becoming increasingly complicated and uncertain.

“We must face the difficulties squarely while staying confident,” it said, adding that China’s strong economic resilience would underpin long-term growth. China must consolidate its economic foundations, enhancing the abilities of scientific and technological innovation, it said.

 

International standards

It also said that China should make every effort to align with international economic and trade rules, deepening reform via high-level opening-up, and boosting high-quality development.

China will continue “to implement proactive fiscal policies and prudent monetary policies for steady economic progress next year”, according to the meeting.

It pledged to implement new tax and fee cut policies, strengthen support for small and medium-sized enterprises, individually-run businesses and manufacturing, and advance infrastructure investment. Policies will be designed to help small and micro enterprises, technological innovation and green development.

Next year's economic priorities also include development through policies of reform and opening up, promoting more balanced and coordinated regional development, and ensuring that its social policies safeguard people’s well-being.

Efforts will be made to boost the employment of young people, including college graduates, and optimize flexible employment and social security policies.

China created 11.33 million new jobs in urban areas in the first 10 months of 2021, achieving its whole-year target before November, according to government data.

 

‘Housing for living in’

Reiterating the principle that ‘housing is for living in, not for speculation’, the conference said China “will support the property market to better cater to the reasonable demand of home buyers and adopt city-specific policies to boost the virtuous cycle and healthy development of the sector”.

The country will also look to encourage high-quality companies into China, incentivising foreign-funded enterprises and attracting more investment from multinational companies, and facilitating the early implementation of major foreign-funded projects.