China policy meeting agreed to support growth of about 6 per cent next year, analysts say
- Central Economic Work Conference rejected massive economic stimulus but called for ‘contingency plans’ against overseas economic pressures
- Analysts expect modest fiscal and monetary policy expansion next year
China is expected to continue modest policy easing next year to maintain an economic growth rate of around 6 per cent, as the government puts economic stability at the top of the agenda, analysts said after a meeting of the Communist Party’s most senior officials.
But Beijing will continue to resist a stimulus of the kind it used after the global financial crisis a decade ago. Instead, it will support a faster pace of innovation and a better quality of growth rather than simply supporting a particular growth rate, analysts said.
This approach was necessary for China to withstand the effects of the trade war with the United States as well as ensure that it was in a strong position to take advantage of the global economy of the future, they said.
The three-day Central Economic Work Conference (CEWC) meeting that involved top leaders including President Xi Jinping, Premier Li Keqiang and Vice-Premier Liu He, set China’s economic policy priorities for next year. An official statement afterwards did not reveal specific economic targets. Those will be officially disclosed in Li’s government work report in March at the “two sessions” meetings of the National People’s Congress and Chinese People’s Political Consultative Conference.
The statement said the leadership would pursue “a reasonable economic growth in terms of quantity” and “keep the economy with a reasonable range” next year.