To stabilise China’s economy, Beijing corrects course on policy, from carbon cuts to common prosperity
- Statement from the centre of power in Communist Party reaffirms what officials have said in recent years - that some well-intentioned policy shifts were hastily made
- ‘The policy touch going forward will be deft and mild,’ economist predicts as leadership vows to tackle structural problems weighing on growth
Beijing has signalled that it is undertaking a course correction in policy - favouring a more cautious tack while trying to avoid further disruptions to businesses and the economy at large.
“Next year we must persist in seeking progress while maintaining stability, promoting stability through advancement, and establishing the new before abolishing the old,” said a statement following Friday’s Politburo meeting that sets the tone for its economic priorities in 2024.
It marked the first time that such comments appeared in a meeting readout from the centre of power within the Communist Party, but similar sentiment has been expressed in recent years by high-ranking officials, including in warnings about “jumping the gun” on issues such as the nation’s decarbonisation efforts.
China learned lessons from taking the green drive too far in previous years
Some analysts say the Politburo’s position signals that Beijing is favouring a step-by-step approach to developing the economy and tackling structural problems, with an eye on avoiding unintended side effects like those resulting from attempts to rein in property speculation and address high levels of local-government debt.
Such rushed campaigns, they note, have a history of roiling markets. And they say the Politburo’s embrace of more stable policies in 2024 could, in turn, help stabilise the expectations of people and businesses.