Maintaining pro-active fiscal and prudent monetary policies is one of the key messages in China's just-concluded Central Economic World Conference which was held in Beijing last week. Chinese policy makers announced that they would implement more tax cuts and fee reductions.

Some analysts expect the scale of tax reductions will reach 1.5 trillion yuan (217.5 billion U.S. dollar) next year. While more tax reductions mean extra government spending, and higher budget deficit target, Qu Qiang, assistant director of the international monetary institute at Renmin University of China, cited it is a natural step for the country's development.

Qu uses Japan as an example, “if you take a look at Japan, its deficit is probably 170 percent of total GDP, not only income, but 1.7 times of GDP, so they have more debt. Well, as you know when a country evolves to a developed stage or more developed than the past, they have higher debt structure, like America, Korea and Canada. When China's economy goes up, a higher deficit will be natural, so we should get used to this situation, because it means China is getting richer, only rich people or a rich country can afford too broad debt.”

Chinese regulators estimate the world's second largest economy could realize its annual GDP growth target of 6.5 percent as the year 2018 draws to an end, with the per capita GDP approaching 10 thousand U.S. dollars.

Qu also said the country has built more infrastructures for people, to give them better living conditions and environment. “After reduction, people can afford larger houses, better education and consume more. And they can create more wealth for the country,” Qu added, "So do not look at right now, we are looking at the future."

While acknowledging pressures from an economic downturn and the complexities throughout the global economy, insiders attending the forum remain optimistic, as the Central Economic Work Conference has given enough space for the country, to fine tune its economic policies in the coming year.