Experts see opportunities in China economy's work plan

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China will continue its crackdown on financial risks and work more to control pollution and reduce poverty, according to a new statement from the annual Central Economic Work Conference.

But, will economic growth be hampered as a result? Instead of giving an absolute yes or no, experts said the neutral monetary policy and proactive fiscal policy could offset whatever financial constraints pollution governance and poverty alleviation impose on the economy.

CGTN Photo

“I think this is a well-designed program," said Rob Johnson, president of the Institute of New Economic Thinking told CGTN. "I do believe the government officials in this country, financial and regulatory, that I meet are sharp, well-trained. And I think this is a healthy design.”

Liu Baocheng, dean of the Center for International Business Ethics at Beijing's University of International Business and Economics, said the agenda gives China’s economy a good opportunity to change its growth model.

“It’s not really to hamper the GDP. For example, if you modernize agriculture, because most of the poverty-stricken areas are in China’s rural areas, that can really boost growth. Also, if you develop more green technology, more big data and applications towards the environment, that will really help economy,” Liu explained.

A term that investors focus on is quality not quantity. President Xi Jinping emphasized that China has been turning into a high-quality growth economy. To quantify the results and adjust the regulations, the government will speed up the process of creating new indicator systems to measure the quality of growth.

The government also said the proposal will help establish a healthy cycle in the financial system and the housing market, benefiting the real economy.

China’s economy will not only have great quantity but also enjoy high quality, Liu said, adding that “more efficient use of houses and many other utilities will definitely help the quality of growth.”

(CGTN’s Cyrus Ip also contributed to the story.)

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