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Priorities set for economic work reveal policymakers' confidence, pragmatism: China Daily editorial

chinadaily.com.cn | Updated: 2025-12-11 21:40
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The annual Central Economic Work Conference, held in Beijing from Wednesday to Thursday, offered clarity, confidence and a concrete direction for economic work at a time when both domestic challenges and global uncertainties remain complex.

By adhering to the new development philosophy and implementing more proactive and effective macroeconomic policies, China has ensured that the economy — growing 5.2 percent year-on-year in the first three quarters of this year — is continuing to advance toward a more resilient, innovation-driven and modernized structure.

As President Xi Jinping stressed in his speech at the conference, the economic policymakers should seek progress while maintaining stability and improving quality and efficiency by leveraging the integrated effects of existing and new policies, increasing countercyclical and cross-cyclical adjustments, and enhancing the effectiveness of macroeconomic governance.

The supporting conditions and fundamental trends for the long-term positive development of the Chinese economy remain unchanged, and new insights and understandings regarding how to effectively manage economic work under the new circumstances have been gained.

To fully tap the country's economic potential, a combination of policy support and reform and innovation are needed. Regulation should be both flexible and effective, and investment in physical assets and human capital must be integrated so the country can better leverage its advantages to address the external challenges.

The past five years have demonstrated China's ability to weather shocks while still pushing forward structural upgrades, deepening reform and opening-up, improving risk mitigation and delivering progress in people's livelihoods.

It is this pragmatic approach of recognizing headwinds while strengthening confidence that has laid a solid foundation for the next five years as the 14th Five-Year Plan (2021-25) nears its successful completion.

This week, the International Monetary Fund raised its forecast for China's 2025 growth to 5 percent, citing notable economic resilience alongside effective policy support. Similarly, the World Bank lifted its 2025 growth projection by 0.4 percentage points, noting that China's accommodative macro policies continue to bolster domestic demand and investment. Both institutions stressed that China's structural reforms and its focus on predictable, innovation-friendly policies will further reinforce its growth momentum.

Such recognition of the prospects of the Chinese economy aligns with the key tasks that were put forward at the just-concluded Central Economic Work Conference: expanding domestic demand, building a strong domestic market and ensuring steady consumption recovery, boosting the supply of high-quality goods and services, supporting service consumption, and facilitating investment through enhanced central budget allocation, optimized special bond use and high-quality urban renewal.

These signal that China will continue advancing reform and expanding high-standard opening-up. Premier Li Qiang's remarks during the "1+10" Dialogue in Beijing on Tuesday also reflect the country's commitment in that regard. He emphasized openness, cooperation and avoiding the politicization of economic issues. As Li noted, China remains committed to global governance reforms and to fostering stable industry and supply chains — priorities strongly echoed by the heads of major international economic organizations attending the dialogue.

Improving people's livelihoods remains at the heart of all policy considerations. China's people-centered development philosophy continues to guide its policy priorities. From the pursuit of balanced regional development and the green transition to strengthening county-level urbanization and safeguarding food security to advancing the national carbon trading market and expanding renewable energy applications, the country is determined to coordinate long-term sustainability with near-term growth.

The bottom line of systemic security, especially in real estate and local government debt, was reaffirmed at the meeting, with city-specific measures to stabilize the property market, promote affordable housing and advance a new development model for real estate to be introduced. Local governments are also tasked with ensuring the steady, responsible resolution of local debt issues.

With strengthened policy coordination, revitalized domestic demand, accelerated innovation and deeper global cooperation, China is well-positioned to maintain its steady development trajectory in the year ahead and beyond.

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