China’s economy ended 2017 with a better-than-expected 6.9-percent growth, among the world’s strongest but far from the astronomical 10-plus growth that catapulted China’s economy in previous decades and made it the world’s second largest.
It’s a new era as China makes the shift from “fast growth” to “high-quality development” with its economic structure undergoing profound changes.
Will China’s economic miracle continue through 2018? What are China’s plans for its economic development?
The upcoming Boao Forum for Asia in south China’s Hainan Province will bring insightful answers.
Ahead of the annual economic forum, CGTN invites you for a quick review of some keywords that are decisive for China’s economy in 2018.
Deepening reform
2018 marks the 40th anniversary of the country’s reform and opening-up. And this year, China’s deep reforms are going even deeper.
The basic feature of China's economic development at present is the transition from a phase of rapid growth to a stage of high-quality development, according to the tone-setting annual Central Economic Work Conference last December.
The supply-side structural reform, which is at the heart of the country’s economic reforms, has produced desired outcomes in the past two years, including cutting excess capacity, destocking, deleveraging, reducing costs and shoring up weak areas, while laying the base for future reforms.
This year, China will further deepen its supply-side structural reform, focusing on eradicating ineffective capacity, fostering new growth drivers and cutting costs in the real economy.
Preventing risks
Defusing risks, primarily in the financial realm, is one of the priorities for the Chinese government this year.
In fact, preventing financial risks is one of the “three tough battles” facing China in the three years starting 2018, along with targeted poverty alleviation and pollution control.
New measures have been taken to reign in such risks. Initial Coin Offerings have been banned, virtual currency exchanges platforms have shut down, and micro-lending businesses have been placed under the microscope.
To defuse major risks, China will maintain a tough stance on irregular and illegal activities in the financial industry, and continue its move to hunt down “grey rhino” and “black swan” threats in the financial market.
Poverty alleviation
The Chinese government has been working to pull all of its population above the national poverty line by 2020, as it makes good on its promise of building a moderately prosperous society in all respects.
Over 68.53 million people shook off poverty over the past five years, according to the State Council Leading Group Office of Poverty Alleviation and Development, with 30.46 million rural people remaining below the poverty line of 2,300 yuan (360 US dollars).
This year’s target is to lift 10 million people out of poverty, and the emphasis now is on how to better serve those still living in hardship. Relief work is centering on the areas hardest hit by poverty, better quality service, and more targeted and precise measures.
Prudent monetary policy
The Central Economic Work Conference has pointed out to a continued prudent monetary policy in 2018, while keeping liquidity reasonably stable.
This flexible policy allows for some wiggle room for fine-tuning according to economic and financial conditions, and would help keep a balance between stabilizing growth and deleveraging.
Analysts expect that the prudent monetary policy in China could tilt to slight tightening this year to support the deleveraging drive.
Accessible global market
2018 is a big year for China’s stock market as the country pushes forward with plans to create a more open and inclusive capital market.
China will now improve conditions for domestic listing, encouraging Internet companies listed overseas to return to the A-share market.
Moreover, global equity indexes provider MSCI confirmed that next June it will include some A-shares in the MSCI Emerging Markets (EM) Index and the MSCI ACWI Index.
The move will bring 17 billion to 18 billion US dollars into China's stock market, and is a sign of acknowledgement to the country’s efforts to upgrade its market and make it more accessible to international investors.
Anchoring: Nadim Diab
Writing and editing: Liu Hui, Nadim Diab
Video editing: Zang Shijie, Zhou Jinxi
Filming: Zhou Jinxi, Huang Yichang
Visual effects: Ran Boqiang, Zhang Xuecheng, Gao Hongmei