The big picture from China’s most important economic meeting of the year
The most senior members of China’s Communist Party have just wrapped up a three-day, closed-door meeting on where they think the Chinese economy should head. Here are the key points from the meeting:
China has bid farewell to “high-speed” growth and entered a new era of “high-quality”growth. In other words, don’t expect to see any dramatic rebound in economic expansion in the coming years.
China will maintain a “proactive” fiscal and a neutral monetary policy stance, ruling out any stimulus or monetary easing. Beijing also said it would keep the yuan’s exchange rate basically stable.
The overriding priority over the next three years will be to manage and prevent major risks to the world’s second-biggest economy, particularly financial risks. China will continue to clean up its chaotic financial sector.
Beijing will try to restore blue skies over the country by cutting pollutants dramatically by 2020. It also wants to lure investors to put money into environmental rehabilitation.
China will press on with its existing goals to eradicate poverty. The government has no plans to lower or raise the poverty threshold.
While China will continue to make the state “stronger, better and bigger”, it will be more of an investor than a manager of state enterprises.
In a break from the past, this year’s economic work conference detailed various concerns from the public, including too much homework for schoolchildren, a lack of kindergarten services, sex discrimination in the workplace as well as online scams.
The 5,000-character statement did not mention the United States or US President Donald Trump. But it did say China would open its market further to increase imports and balance trade.