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China’s annual Economic Work Meeting ended on Thursday. Photo: Xinhua

China’s leaders promise to boost growth, and fight poverty and pollution in 2020

  • Annual Economic Work Meeting pledges to promote technology-based development and competition by further opening up the economy
  • China faces ‘mounting risks and challenges at home and abroad’, report says
China’s leaders have promised to shore up economic growth next year in the face of a tariff war with the United States, and reduce poverty and pollution.

In a statement released by state media on Friday, Communist Party leaders pledged at an annual planning meeting to promote technology-based development and competition by further opening up the state-dominated economy.

The annual Economic Work Meeting, which ended on Thursday, lays out the goals for the coming year, though details of how they will be achieved are usually held back until the annual meeting of the National People’s Congress – China’s ceremonial legislature – in March.

The meeting “sent a strong signal that stability is the first priority”, Citigroup said in a report. But “some of the elements that plagued China’s 2019 slowdown will continue to shape next year’s economy”.

This year’s plan comes amid a tariff was with the United States over Beijing’s technology ambitions and trade surplus, and a steady decline in economic growth from the previous decade’s explosive double-digit rates.

China’s leaders are in the midst of a marathon campaign to steer the country towards more sustainable, if slower, growth based on domestic consumption instead of trade and investment. Their plans have been challenged by the trade war and an unexpectedly sharp downturn in consumer demand.

In the third quarter of the year, economic growth sank to a multi-decade low of 6 per year from the same period of 2018.

China says any trade deal must be ‘mutually beneficial’

Friday’s statement promised to fight “three major battles” against poverty, pollution and financial risk. The ruling party would “ensure reasonable growth” in the economy and “stable growth” of trade, it said.

It made no direct mention of the trade battle with Washington but said China faced “mounting risks and challenges at home and abroad”.

China has tried to shore up growth by easing controls on bank lending and pumping money into the economy through increased investment in public works. But the leadership wants to avoid reigniting a rise in debt and has said it wants to rely on economic reforms instead of stimulus spending.

The US’ trade tariffs have battered Chinese exporters, but they have responded by stepping up sales to other markets, putting the country on track to end 2019 with little loss in global trade.

Exports to the United States in the first 11 months fell by 25 per cent year on year, but global sales were down by just 0.3 per cent in the period.

Friday’s statement also promised “vigorous efforts” in “supply-side structural reform”, a reference to reducing excess production capacity in steel, coal and other industries.

Overproduction has depressed prices and threatened producers with financial ruin. A flood of low-cost exports is straining trade ties with Washington and Europe.

This article appeared in the South China Morning Post print edition as: Promise of economic opening to help growth
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