China to focus on economic ‘contingency plans’ to battle growing pressures in 2020

Central Economic Work Conference, attended by President Xi Jinping, took place under close scrutiny due to the US trade war and the slowing domestic economy

Economic targets for 2020, including gross domestic product (GDP) growth and inflation, will only be revealed at the ‘two sessions’ meeting in March

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President Xi Jinping as well as Premier Li Keqiang and Vice-Premier Liu He attended the Central Economic Work Conference in Beijing this week. Photo: CCTV

Published: 8:36pm, 12 Dec 2019Updated: 11:51pm, 12 Dec 2019

China’s top policymakers have increased their focus on maintaining economic stability next year, calling for “contingency plans” to offset growing global risks, according to the results of a top economic planning meeting that concluded on Thursday in Beijing.

It is the first time since 2013 that the planners have explicitly cited the need to ensure stability in their goals for the coming year, in parallel with other goals including promoting reform, structural adjustment, improving people’s living standards and risk prevention, although the broad sense of stability has often been cited by Communist Party leaders in the last several years.

The greater sense of urgency comes as the country is facing a series of major economic challenges. The 18-month trade war with the United States continues, and could escalate further if new US tariffs scheduled to be implemented on Sunday are not delayed.

Domestic growth is also expected to slow further in the fourth quarter and into next year from the 6 per cent growth posted in the third quarter of 2019, which was the lowest in nearly three decades.

Sources of global turbulence and risk have increased noticeably. We must make contingency plans

Official statement

“We are at a critical period in transforming our method of development, optimising the structure of the economy and changing the drivers of growth. Structural, institutional and cyclical problems have woven together and exerted greater pressures on the economy,” the official Xinhua News Agency reported, citing a statement following the conclusion of the three-day Central Economic Work Conference,which was attended by President Xi Jinping.

“Sources of global turbulence and risk have increased noticeably. We must make contingency plans.”

The annual meeting is closely watched as it sets the tone for the size and nature of economic stimulus to achieve targets for growth, inflation, government investment and structural reform for the coming year.