China outlines measures to ensure macroeconomic stability in 2022
Updated 23:35, 10-Dec-2021

China has vowed to take a range of measures to ensure macroeconomic stability in 2022, as the world's second largest economy battles pressure after a good start in the 14th Five-Year Plan period (2021-2025). 

Chinese leaders mapped out priorities for the economic work next year at the annual Central Economic Work Conference, held in Beijing from Wednesday to Friday. 

According to a statement released after the conference, efforts should be made to safeguard macroeconomic stability, keep major economic indicators within an appropriate range and maintain social stability to prepare for the 20th National Congress of the Communist Party of China (CPC), scheduled for the second half of 2022.

Three types of pressure

Chinese President Xi Jinping, who is also general secretary of the CPC Central Committee, reviewed the country's economic work in 2021, analyzed the current economic situation and arranged next year's economic work. 

This year, China maintains a leading role globally in both economic development and response to COVID-19 and secured a good start to the 14th Five-Year Plan period, the statement of the conference said. 

On the other hand, it highlighted the "three types of pressure" faced by the Chinese economy, namely declining demand, supply shocks and weakening outlook.  

"We must face up to these difficulties and reinforce confidence as well," it said. "The strong resilience of the Chinese economy and the fundamentals for long-term sound economic development remain unchanged." 

China's gross domestic product (GDP) expanded 9.8 percent year on year in the first three quarters, according to data from the National Bureau of Statistics. In the third quarter (Q3), the country's GDP grew 4.9 percent year on year, slower than the growth of 18.3 percent in Q1 and 7.9 percent in Q2. 

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Chinese leaders attend the annual Central Economic Work Conference in Beijing. The conference was held from December 8 to 10, 2021. /Xinhua

Chinese leaders attend the annual Central Economic Work Conference in Beijing. The conference was held from December 8 to 10, 2021. /Xinhua

Proactive fiscal policies, prudent monetary policies 

The statement stressed that the economic work next year should prioritize stability while pursuing progress, calling on relevant authorities across China to make policies conducive to maintaining economic stability. 

The country should keep macro policies prudent and effective, stimulate vitality of market entities via microeconomic policies, and deepen the supply-side structural reform with a focus on smoothing the circulation of the national economy, it said. 

China will continue to implement proactive fiscal policies and prudent monetary policies so as to pursue steady progress in its economic development, it said. 

The country should promote solid implementation of scientific and technological policies, vitalize development through reform and opening-up, and promote more balanced and coordinated regional development, according to the statement. It also called for policy support to safeguard people's well-being. 

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Efforts to smooth domestic circulation

In its 14th Five-Year Plan, China vows to establish a new development paradigm featuring "dual circulation," in which domestic and overseas markets reinforce each other, with the domestic market as the mainstay. 

The statement put emphasis on the need to smooth domestic circulation, calling for efforts to remove the supply-side constraints and choke points as well as ensure unimpeded flow in production, distribution, circulation and consumption. 

Efforts will be made to enhance the core competitiveness of the manufacturing sector, and accelerate the establishment of a safe and efficient logistics network, which will enable the domestic and external markets to interconnect with each other, it 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, according to the statement. It reiterated the principle that "housing is for living in, not for speculation."

Aerial photo taken on September 8, 2021 shows the construction site for a transaction center in Qianhai, Shenzhen, south China's Guangdong Province. /Xinhua

Aerial photo taken on September 8, 2021 shows the construction site for a transaction center in Qianhai, Shenzhen, south China's Guangdong Province. /Xinhua

Way to achieve common prosperity

With China intensifying efforts to promote common prosperity for all, the statement analyzed how to achieve the strategic goal. It stressed the importance of creating and accumulating social wealth on the one hand, and preventing polarization on the other. 

First, all Chinese people need to work together to make the "cake" bigger and better; then efforts should be made to divide the "cake" well through proper institutional arrangements, the statement said, calling it a "long historical process." 

It called for more emphasis on job creation in the course of economic growth and bigger roles for taxation, social security and transfer payments in distribution adjustment. 

It stressed support for capable enterprises and social groups to actively participate in charitable public welfare undertakings. 

It also called for efforts to provide basic public services such as education, healthcare, aged care and accommodation in a targeted manner. 

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