At the annual Central Economic Work Conference, the Chinese mainland outlined its proactive and impactful fiscal policies set to steer the economy through 2025. Spearheaded by General Secretary Xi Jinping, the conference emphasized increasing the deficit-to-GDP ratio, adopting a moderately loose monetary policy, and expanding domestic demand as key priorities.
Xi Jinping delivered a pivotal speech reviewing the nation’s economic performance in 2024 and detailing the roadmap for the coming year. He highlighted the stable economic growth achieved last year despite external challenges, attributing the rebound to strategic policies implemented by the CPC leadership.
The conference underscored the importance of maintaining steady economic growth, ensuring employment and price stability, and increasing residents' incomes in line with economic expansion. To achieve these goals, China plans to issue more ultra-long special treasury bonds and local government special-purpose bonds while optimizing fiscal expenditures.
Monetary policy will remain moderately loose, with potential reductions in reserve requirement ratios and interest rates to ensure ample liquidity in the market. The coordination between fiscal, monetary, and other key policies will be enhanced to support comprehensive economic reforms and opening-up measures.
Boosting Consumption and Investment
China aims to invigorate consumption through special campaigns that increase incomes and alleviate burdens on low- and middle-income groups. Investments will focus on large-scale equipment upgrades, consumer goods trade-in programs, and the development of new economic sectors such as the debut, ice and snow, and silver economies.
Fostering Innovation and Technological Advancement
The strategy places a strong emphasis on scientific and technological innovation to build a modernized industrial system. Initiatives like the \"AI Plus\" project and support for future industries aim to enhance China’s strategic scientific strength. Additionally, encouraging patient and social capital participation in venture funding will be key to nurturing startups and reducing irrational competition.
High-Standard Opening Up and Risk Prevention
Expanding high-standard opening-up policies will stabilize foreign trade and investment, with pilot programs in sectors like telecom, healthcare, and education. Risk prevention measures will ensure no systemic risks arise, particularly in the real estate and financial sectors.
Regional Development and Green Transition
Coordinated urban and rural development will be prioritized to ensure balanced regional growth. Efforts to advance the green transition include building new energy bases and zero-carbon industrial parks, aligning economic growth with environmental sustainability.
Overall, China’s 2025 economic strategy aims to build on the successes of the past year, addressing current challenges while laying a solid foundation for future growth and stability.
Reference(s):
cgtn.com
