Editor's Note: Xiao Wen is a professor and deputy director of Institute of International Economics and Trade at Zhejiang University College of Economics, and Xie Wenwu is a professor and deputy dean of Business School at Zhejiang University City College. The article reflects the authors' opinions and not necessarily the views of CGTN.

Faced with complex and severe domestic and international situations and the impact of multiple unexpected factors, China's economy withstood the pressure. The gross domestic product (GDP) in the first three quarters increased 3 percent year-on-year. On the basis of 2.5 percent year-on-year growth in the first half of the year, the economy began to gradually recover. The development of China's economy remains strong and resilient. The economy has slowed but not stalled and the momentum of rapid economic rebound is accumulating while the long-term fundamentals have not changed. However, the current uncertainty risks still exist. Against this background, the 2022 Central Economic Work Conference is particularly important for guiding the work in the next stage.

Compared with last year, the 2022 Central Economic Work Conference pointed out that the current economic situation is more complex, and the triple pressures are still great. In particular, this year's volatile external environment has deepened the impact on China's economy. The next few years will be an important period for China to comprehensively deepen reforms and opening up. Therefore, the main tone of this year's Central Economic Work Conference is to vigorously boost market confidence and ensure that economic growth returns to normal. The meeting proposed to organically combine the implementation of the strategy of expanding domestic demand with the deepening of the structural reform of the supply side. The meeting proposed to do a good job in stabilizing growth, employment and prices, effectively prevent and defuse major risks, and promote the overall improvement of economic operation. That's so as to make a good start for building a modern socialist country in all respects.

Faced with the impact of many unexpected factors including the pandemic, the 2022 Central Economic Work Conference made new arrangements for the next economic effort. The main highlights are shown in several aspects. Firstly, the meeting proposed to improve the policy implementation mode to enhance timeliness and accuracy. In particular, in terms of fiscal and monetary policies, the meeting proposed to strengthen the accuracy of implementation.The meeting proposed to strengthen efforts to ensure fiscal sustainability and controllable local government debt risks by optimizing the combination of deficit, special debt, discount interest and other tools. It also proposed to promote financial sinking by increasing the transfer payments from the central government to local governments. In addition, how to improve the efficiency of capital allocation through precise and powerful prudent monetary policy is also a key task in the next stage.

Secondly, the central government pays more attention to the prevention and resolution of major economic and financial risks. The meeting clearly proposed to ensure the stable development of the real estate market and meet the reasonable financing needs of the industry. Compared with 2021, this year's meeting still insisted that houses should be used for living, not for speculation. The central government emphasized how to promote real estate enterprises to ensure delivery, how to effectively prevent and resolve the risks of top real estate enterprises, and promote the smooth transition of real estate to the new development model. The meeting clearly proposed to strengthen the centralized leadership of the Party Central Committee over financial work to prevent regional and systemic risks.

Thirdly, the central government has a clearer position in implementing the strategy of expanding domestic demand. The core idea is to expand the policy priority of domestic consumption. The meeting clearly pointed out that government departments should give priority to the recovery and expansion of consumption, and increase the income of urban and rural residents through multiple channels. The meeting proposed to effectively drive the investment of the whole society through government investment and policy incentives, and encourage more private capital to participate in the construction of major national projects.

It can be seen from the spirit conveyed at this meeting that the central government has fully studied and prepared for the impact of the adjustment of pandemic prevention policies. China's economy has great potential and strong resilience. Scientific pandemic prevention will bring social and economic life back on track, which will greatly boost the confidence of all parties. However, the full liberalization of pandemic prevention policies does not mean that the economy will rebound rapidly. The meeting proposed five key tasks, including focusing on expanding domestic demand, accelerating the construction of a modern industrial system, implementing China's multiple ownership structure dominated by public ownership, making greater efforts to attract and utilize foreign capital, and effectively preventing and defusing major economic and financial risks. That will fully stimulate the internal momentum of economic development and push China's economic growth to the normal track.