China’s top policy panel says government will continue ‘necessary support’ for economy

The Central Economic Work Conference that concluded on Friday is an annual arena to draft China’s economic priorities for the coming year

World’s second-largest economy will focus on strengthening strategic technological innovation, ensuring the control of supply chains and boosting domestic demand in 2021

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Chinese President Xi Jinping speaks at the Central Economic Work Conference on Friday. Photo: Xinhua

Published: 7:50pm, 18 Dec 2020Updated: 11:30pm, 18 Dec 2020

China’s top policymakers have pledged to continue “necessary support” for the nation’s economic recovery and will make “no U-turn” when there are still many outlook uncertainties due to the coronavirus pandemic and the external environment, according to the Central Economic Work Conference that concluded on Friday.

The world’s second-largest economy will put its focus on eight tasks for the coming year, including strengthening strategic technological innovation, ensuring the control of supply chains and boosting domestic demand.

“We must maintain the continuity, stability and sustainability of macro policies … and make policies more targeted and effective,” the official Xinhua News Agency reported, citing a statement after the group’s three-day meeting.

“We must use the valuable time window to focus on reform and innovation – achieving a good start for the 14th five-year plan in terms of high-quality development.”

The annual conference is an arena to draft the next year’s economic priorities, attended by hundreds of central government officials, regulators, provincial governors and state-owned enterprise executives. It sets specific targets for economic growth, the fiscal deficit ratio, inflation and government investment for the coming year.

The top leadership headed by President Xi Jinping mentioned in the conference statement last year the need to make a contingency plan for the economy, a possible reference to the dual circulation strategy introduced by Xi in May this year. In 2018, the conference called for tapping into the nation’s huge domestic market, which has now become the central tenet of the dual circulation plan.

Policymakers often seek to strike a fine balance between risk prevention and economic growth in times of external uncertainty, as is currently the case. The stability of the national economy, financial system and job market will receive higher priority next year, when the ruling Communist Party will celebrate its 100th anniversary, and as the government strives for a strong start to the new five-year plan.

“We must try to keep the economy within a reasonable range,” the statement said.