China's key economic meeting requires setting up 'traffic light' for capital
Updated 07:58, 13-Dec-2021

China will set up a "traffic light" for capital in a bid to "effectively regulate capital" and guide its healthy development, the Central Economic Work Conference said Friday.

The annual meeting was held in Beijing from Wednesday to Friday to chart the course for China's economy in 2022. 

It is necessary to correctly understand the characteristics and behavioral laws of capital, the meeting requested.

As there are inevitably various forms of capital in the socialist market economy, which the meeting said is a "great creation," it is necessary to give play to the positive role of capital, as a production factor, while effectively controlling its negative role, according to the meeting. 

Over the past year, China escalated regulation on its platform economy, and online gaming and tutoring sectors to curb the disorderly expansion of capital.

The meeting also revealed that China will uphold and improve the basic socialist economic system, unswervingly consolidate and develop the public sector of the economy, and encourage, support and guide the development of the non-public sector.

After lifting hundreds of million people out of extreme poverty and completing the goal of building a moderately prosperous society in all respects in the country, China has put top priority on attaining common prosperity, which refers to affluence shared by everyone both in material and cultural terms, in a bid to narrow the gap between regions, urban and rural areas, and in people's incomes.

The meeting emphasized the necessity to correctly understand the strategic goals and practical approaches for achieving common prosperity, adding it is necessary to continuously liberate and develop social productive forces, create and accumulate social wealth, while preventing polarization.

To achieve the goal of common prosperity, the first step is to make the "cake" bigger and better through the joint efforts of the people of the whole country, and then divide the cake well through reasonable institutional arrangements, according to the meeting. 

It said the goal will be realized through a high-quality development model with employment as a priority, effective wealth distribution policies with enhanced taxation, social security, and transfer payments, and encouraging charity work. 

Embarking on green goals of peaking carbon emission by 2030 and becoming carbon neutral by 2060, China aims to reduce the share of coal in its energy mix to less than 56 percent this year, according to a guideline released by the National Energy Administration. The proportion was around 70 percent a decade ago. 

The meeting said China will enhance the capacity of domestic resource production and support, accelerate the development and application of advanced mining technologies for oil and gas and other resources, and the construction of a waste recycling system. In the field of consumption, the country will enhance public awareness of the need to conserve resources and advocate a simple, moderate, green and low-carbon lifestyle.

(Cover via CFP)

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