China charts 2025 economic strategy at Central Economic Work Conference

China will implement more proactive and impactful fiscal policies in the coming year. Priorities include increasing the deficit-to-GDP ratio, implementing a moderately loose monetary policy, expanding domestic demand, and stabilizing the real estate and stock markets, according to the annual Central Economic Work Conference held from Wednesday to Thursday.

Xi Jinping, general secretary of the Communist Party of China (CPC) Central Committee, Chinese president, and chairman of the Central Military Commission, delivered an important speech at the conference.

In his speech, Xi reviewed the country's economic work in 2024, analyzed the current economic situation, and outlined plans for next year's economic work.

The meeting noted that the Chinese economy has demonstrated generally stable performance while making progress in 2024, with solid advances in high-quality development. It added that major annual goals and tasks for economic and social development are expected to be successfully accomplished.

The development journey over the past year has been extraordinary, and the achievements have been encouraging, according to the meeting. It highlighted that a raft of incremental policies deployed by the CPC leadership in late September effectively boosted social confidence and drove a remarkable rebound in the economy.

While acknowledging the deepened adverse impact caused by changes in the external environment and the many difficulties and challenges still facing domestic economic operations, the meeting emphasized that the supporting conditions and the fundamental trend of the Chinese economy's long-term sound development remain unchanged.

"We must face up to the difficulties, strengthen our confidence, and strive to transform all positive factors into actual achievements in development," the meeting said.

The meeting called for more proactive and impactful macro policies to sustain the upward trend of the economy, fulfill the goals and tasks of the 14th Five-Year Plan (2021-2025) with high quality, and lay a solid foundation for a strong start to the 15th Five-Year Plan (2026-2030).

For next year, the meeting emphasized the importance of maintaining steady economic growth, keeping employment and prices generally stable, ensuring a basic equilibrium in the balance of payments, and increasing residents' income in step with economic growth.

The country should adopt a more proactive fiscal policy, set a higher deficit-to-GDP ratio, and ensure its fiscal policy remains consistently forceful and impactful, according to the meeting.

It pledged to increase the issuance of ultra-long special treasury bonds and local government special-purpose bonds, as well as optimize the structure of fiscal expenditure.

A moderately loose monetary policy should be implemented, with reductions in the reserve requirement ratio and interest rates at appropriate times to ensure ample liquidity, the meeting stated.

The meeting emphasized better coordination between fiscal, monetary, employment, industrial, regional, trade, environmental and regulatory policies, alongside the country's reform and opening-up measures.

On consumption, investment and domestic demand

Outlining key tasks for 2025, the meeting called for vigorous efforts to boost consumption, improve investment efficiency, and expand domestic demand on all fronts.

A special campaign dedicated to stimulating consumption should be implemented, with measures to increase incomes and alleviate the burdens of low- and middle-income groups, the meeting noted.

Large-scale equipment upgrades and consumer goods trade-in programs should be promoted with greater intensity and scope. Efforts should also be made to develop the debut economy, the ice and snow economy, and the silver economy, according to the meeting.

It called for stronger support in implementing major national strategies, enhancing security capacity in key areas, and increasing investment from the central government budget where appropriate.

On developing new quality productive forces

China should prioritize scientific and technological innovation to drive the development of new quality productive forces and build a modernized industrial system, the meeting stated.

Efforts should include forward-thinking arrangements for major technological projects, large-scale demonstrations for applying new technologies, products and scenarios, the launch of an "AI Plus" initiative, nurturing future industries, and boosting China's strategic scientific and technological strength, according to the meeting.

China should encourage patient capital and attract more social capital participation in venture capital, the meeting emphasized. It also called for addressing irrational competition (rat races) and regulating the behaviors of local governments and enterprises.

The meeting highlighted the need to fully implement landmark economic reform measures, enhance regulation, promote the healthy development of the platform economy, and improve the capital market system's inclusiveness and adaptability.

On high-standard opening up and risk prevention

China should expand its high-standard opening-up policies and maintain stability in foreign trade and investment, the meeting noted.

Efforts should include expanding pilot programs in sectors like telecom, healthcare and education.

The meeting also demanded effective prevention and mitigation of risks in key areas to ensure no systemic risks arise.

It called for further efforts to reverse the downturn in and stabilize the real estate market. This includes reasonably controlling the supply of newly added real estate land and promoting a new model of real estate development.

Risks in local small and medium-sized financial institutions should be addressed prudently, the meeting stated.

On regional development

Efforts must focus on coordinated progress in new urbanization and comprehensive rural revitalization while promoting integrated urban-rural development.

Stable production and supply of grain and other key agricultural products should be ensured, and the governance of super-large and mega cities should be modernized, according to the meeting.

Implementation of regional strategies should be strengthened to boost regional vitality. This includes fostering new growth poles, enhancing the innovation capabilities of economically advanced regions, and leveraging their role as development leaders.

On green transition and people's well-being

The meeting urged intensified efforts to advance the green transition across all areas of economic and social development. This includes accelerating the construction of new energy bases in sandy areas, rocky areas and deserts, and establishing zero-carbon industrial parks.

It also emphasized securing and improving people's well-being, including implementing employment support plans for key sectors and industries, urban and rural communities, and micro, small and medium-sized enterprises.

China should formulate pro-childbirth policies, develop community-supported at-home elderly care, and expand universally beneficial elderly care services, the meeting stated.

For next year's economic work, an optimized balance of stable growth, stable employment and reasonable price rebounds should be achieved, the meeting stated, urging all tasks to be carried out promptly and effectively with sufficient intensity.

More efforts should focus on completing major tasks for next year in key areas, the meeting noted, emphasizing the need to boost domestic demand, particularly consumer demand. It also called for better management of expectations and coordination of policy implementation with expectation guidance to enhance the influence and effectiveness of policies.

The meeting also emphasized the importance of preparing sound proposals for the 15th Five-Year Plan.

Efforts should be made to ensure people's well-being and security at the turn of the year and to maintain overall social stability, according to the meeting.

The meeting was attended by Li Qiang, Zhao Leji, Wang Huning, Cai Qi, Ding Xuexiang and Li Xi, all members of the Standing Committee of the Political Bureau of the CPC Central Committee.

Li Qiang delivered a concluding speech, outlining requirements for implementing the guiding principles of Xi's important speech and ensuring effective economic work in the coming year.

(With input from Xinhua)