China’s top policymakers have pledged to maintain continuity in the country’s macro policies next year by not making any “sudden turns.”
“We should continue to implement a proactive fiscal policy and a prudent monetary policy to keep necessary support for the economic recovery,” said a readout (link in Chinese) from the three-day annual Central Economic Work Conference, which was published by the state-run Xinhua News Agency on Friday.
Leaders also promised to balance supporting the economy with preventing risks, while keeping the economy’s leverage more or less stable.
As the economy has recovered over the past few months, some analysts have begun questioning when and how policymakers will exit from the stimulus policies implemented this year to offset fallout from the Covid-19 pandemic.
Policymakers reiterated support for reforms on both the supply and demand sides of the economy. “(We) should stick to supply-side structural reform while at the same time paying attention to demand-side management to eliminate blockages, address shortcomings and link production, distribution, circulation and consumption to create a higher-level dynamic equilibrium, in which demand drives supply and supply creates demand,” the readout said.
Read more What’s In Store for China’s Economy in 2021
The key tasks for next year include improving self-reliance on industrial chains and supply chains, strengthening the nation’s strategic technology power, expanding domestic demand and curbing monopolies, according to the readout.
Stay tuned for updates…
Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)
