Xi Jinping prepares to unveil China’s economic game plan for 2019 amid trade war tensions with US
- Mainland’s top leadership is likely to hold the annual policymaking Central Economic Work Conference next week
- The meeting will decide what Beijing will do to keep growth on track amid the trade war truce with the United States
Chinese President Xi Jinping is calling a meeting with the country’s top leadership to manage lingering trade tensions abroad and deepening growth slowdown at home, in which tax cuts, fiscal stimulus and greater market openings are expected to be discussed.
The Central Economic Work Conference, which is likely to be held next week, is an annual gathering of Chinese state leaders, ministers, provincial governors and senior advisers that is intended to build a consensus and chart out economic policies for the country’s most important economic issues, from growth to structural reform.
The 2018 conference will be held at a particularly critical moment when the world’s second biggest economy is at a new crossroads.
Xi agreed a 90-day trade war truce with US President Donald Trump in Argentina on December 1, and whether the trade war will resume, or intensify, is largely up to what Beijing choose to do next.
Analysts believe the Chinese leadership needs to roll out more pro-growth measures at home to keep ‘hard landing’ and massive unemployment risks at bay.
Iris Pang, the chief Greater China economist at ING, believes they will take the chance to showcase their commitment to “reform and opening up” to dispel scepticism over whether Beijing is still interested in economic liberalisation and to shore up confidence in the domestic private sector.
“The key message will be on new areas of opening … there are already some piecemeal opening-up measures [drafted by Beijing] ahead of the G20 summit, and they could be packed into a big release this time,” Pang said.