China’s leaders pledged to attain next year’s target for growth and better support the country’s private sector after this year’s central economic work conference on Thursday, saying the country’s coffers would be opened wider for a much-needed jolt to domestic demand.
A statement issued after the two-day conference – an annual gathering which sets the economic agenda for the coming year – served as a show of confidence for Beijing’s determination to keep the world’s second-largest economy growing in 2025 at a sustainable rate.
Though no specific targets were announced for next year – as is typical for the conference, which sets the overall tone for government action – the official readout of the meeting stated major benchmarks would be met through a number of policy changes: a higher fiscal deficit ceiling, more treasury bonds and cuts to interest rates and the reserve requirement ratio.
“While the impact of external changes deepens and the Chinese economy still faces many difficulties and challenges, we must realise that China’s upward economic trend has not changed yet,” read the statement, urging officials to act with conviction in achieving the tasks set out for 2021 to 2025 in a “high-quality” way.
Beijing also reaffirmed its desire to further step up support for ailing private firms – a frequent refrain in official rhetoric – by incentivising investment, limiting “cutthroat competition” viewed as counterproductive, creating uniform standards for market operators and reining in the excesses of local governments.
Investment growth from the private sector, which makes up 60 per cent of national economic output, has stalled as confidence wanes.