The Chinese economy is still strong
People begin to wonder whether the Chinese economy is still strong. China economy held up under pressure from challenging and serious domestic and international circumstances as well as the effects of other unforeseen events. The overall GDP rose 3% year over year in the first three quarters. The economy started to slowly recover based on 2.5% year-over-year growth in the first half of the year. China’s economy continues to grow strongly and steadily. Although the economy has slowed but not stopped, momentum for a quick recovery is building even though the long-term economics have not changed. The present unknown risks are still present, though. In light of this, the 2022 CEWC will play a significant role in determining how the work will proceed.
The 2022 Central Economic Work Conference (CEWC) noted that the triple pressures are still quite high and that the current economic environment is more complicated than it was last year. The burden on China’s economy has been particularly exacerbated this year by the unstable foreign environment. China will need to strengthen its changes and going to open up significantly over the coming years. As a result, this year’s CEWC is focused primarily on bolstering market confidence and ensuring that economic growth resumes at a normal pace. The meeting suggested that the execution of the strategy of increasing domestic demand and the strengthening of restructuring on the supply side be organically combined. The proposal from the meeting was to successfully avert and defuse big threats, stabilize the economy, jobs, and pricing, and support the general development of economic activity. This is done in order to get off to a good start in creating a contemporary socialist nation.
The 2022 CEWC changed the plans for the following economic effort in response to the impact of numerous unanticipated factors, including the epidemic. Several characteristics highlight the key points. First, it was suggested at the conference to boost the timeliness and accuracy of the policy implementation process. The meeting specifically suggested improving the accuracy of execution in both monetary and fiscal policies. The conference suggested stepping up efforts to ensure fiscal stability and manageable local government debt risks by using deficits, special debt, discount interest, and other mechanisms to their best advantage. Additionally, it suggested raising the transfer payments made by the federal government to local authorities in order to encourage economic dumping.
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The prevention and mitigation of significant economic and financial hazards are given increased consideration by the national government. The meeting made it very clear that it wanted to guarantee the steady growth of the real estate market and provide for the fair financing requirements of the sector. This year’s meeting upheld the position that homes should be utilized for habitation rather than speculation, as it did in 2021. The central government placed a strong emphasis on promoting real estate firms to ensure delivery, how to successfully prevent and address the risks of leading real estate businesses, and how to support the real estate sector’s seamless transition to the new model of development. In order to reduce regional and systemic risks, the meeting explicitly advocated for strengthening the Party Central Committee’s centralized control over financial activity.
In putting the policy of increasing domestic demand into action, the central government has a more defined position. The main concept is to raise domestic consumption up the policy priority list. The meeting made it abundantly evident that government agencies should prioritize the expansion of consumption and the recovery of urban and rural income through a variety of routes. The proposal made during the meeting was to stimulate more private participation in the construction of significant national projects while effectively driving societal investment through government spending and regulatory incentives.
The tone of this conference makes it clear that the govt has thoroughly researched and planned for the effects of changing pandemic prevention policy. The Chinese economy is resilient and has immense potential. Scientific epidemic control will stabilize the economy and social life, which will considerably increase everyone’s confidence. However, complete deregulation of pandemic prevention measures does not guarantee a quick recovery of the economy. The meeting put forth five key tasks, including concentrating on increasing domestic demand. Speeding up the development of an advanced industrialized society. Trying to implement China’s multiple ownership with a strong emphasis on public property. Increasing efforts to draw in and use foreign investment, and successfully preventing and defusing significant financial and economic threats.