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China sets macroeconomic policies for 2010
2009-12-09 09:29:53Source:Global TimesAuthor:
China's macroeconomic policies for 2010 were set at the three-day Central Economic Work Conference, which wrapped up on Monday.
At the meeting, officials said the country's proactive fiscal policy and moderately easy monetary policy will still be maintained, which is within previous analysts' forecasts. Economic and social development next year will be of great importance to deal with the impact of the global economic downturn comprehensively.
More efforts will be made to promote adjustments to the economic development pattern, and to enhance the focus and flexibility of the economic policy in line with new situations next year, according to the attendees of the meeting.
In addition, more will be done to continue reform and opening-up, innovation, enhance the momentum of economic growth, improve people's livelihood, and maintain social harmony and stability, conference participants pointed out.
It was also agreed that a good balance should be kept in sustaining a relatively fast and stable economic growth, economic restructuring and dealing with predicted inflation next year.
The meeting said that the continuity and stability of the monetary policy should be maintained, stressing pertinence and flexibility.
Favorable policies in property and auto
The meeting also affirmed favorable policies in the property and auto markets will be maintained.
Domestic consumption was highlighted as the core of the transforming the country's economic development pattern. The participants at the meeting said that consumption should play a greater role in economic development.
The adjustment of the distribution of national income would also be enhanced, especially for low-income residents.
A series of policies that promotes consumption, including those aimed at home appliances, motorcycles, cars, and property will be maintained, according to the meeting.
Urbanization will be pushed further, and the development of mid- and small-sized cities will be stressed.
The meeting also noted that the Chinese government will push for the recovery of its exports and promote balanced international trade as one of its major tasks next year.
The government will keep the theme of "continuity" and "stability" in its export sector, diversify its market strategy, and tap into new markets, while maintaining old ones in order to promote export growth.
The Chinese government also vows to enhance efforts in 2010 to promote agricultural development, strengthen produce supply to the market, and expand rural demand.
Tightened policy in 2010
Although the basic tone of the macroeconomic policies was basically the same with the policies made carried out in 2009, analysts believed that compared with this year, China will have a more tightened policy in 2010.
The participants at the meeting agreed that "keeping a moderately increase in the investment", but also pointed out that "highlights should be put on the projects that is under construction and strictly control the approval of new projects."
The meeting also calls for an appropriate growth for the loans in the next year.
Analysts cited the monetary policy as an example, as China loaned out 7.37 trillion yuan in the first half of this year, but only 1.55 trillion yuan in the second half.
Yang Zhiyong, a researcher from the Chinese Academy of Social Sciences (CASS) said that although the meeting set the tone of the fiscal and monetary policies as "moderately easy", other factors like commodity and resource prices may exert large influences on the policies.
He added that the saying of "moderately easy" actually implies lots of room to adjust the policies.
The academic also predicted that under the pressure of the factors like commodity and resources prices, the policies could be adjusted again in the middle of next year.
At the meeting, officials said the country's proactive fiscal policy and moderately easy monetary policy will still be maintained, which is within previous analysts' forecasts. Economic and social development next year will be of great importance to deal with the impact of the global economic downturn comprehensively.
More efforts will be made to promote adjustments to the economic development pattern, and to enhance the focus and flexibility of the economic policy in line with new situations next year, according to the attendees of the meeting.
In addition, more will be done to continue reform and opening-up, innovation, enhance the momentum of economic growth, improve people's livelihood, and maintain social harmony and stability, conference participants pointed out.
It was also agreed that a good balance should be kept in sustaining a relatively fast and stable economic growth, economic restructuring and dealing with predicted inflation next year.
The meeting said that the continuity and stability of the monetary policy should be maintained, stressing pertinence and flexibility.
Favorable policies in property and auto
The meeting also affirmed favorable policies in the property and auto markets will be maintained.
Domestic consumption was highlighted as the core of the transforming the country's economic development pattern. The participants at the meeting said that consumption should play a greater role in economic development.
The adjustment of the distribution of national income would also be enhanced, especially for low-income residents.
A series of policies that promotes consumption, including those aimed at home appliances, motorcycles, cars, and property will be maintained, according to the meeting.
Urbanization will be pushed further, and the development of mid- and small-sized cities will be stressed.
The meeting also noted that the Chinese government will push for the recovery of its exports and promote balanced international trade as one of its major tasks next year.
The government will keep the theme of "continuity" and "stability" in its export sector, diversify its market strategy, and tap into new markets, while maintaining old ones in order to promote export growth.
The Chinese government also vows to enhance efforts in 2010 to promote agricultural development, strengthen produce supply to the market, and expand rural demand.
Tightened policy in 2010
Although the basic tone of the macroeconomic policies was basically the same with the policies made carried out in 2009, analysts believed that compared with this year, China will have a more tightened policy in 2010.
The participants at the meeting agreed that "keeping a moderately increase in the investment", but also pointed out that "highlights should be put on the projects that is under construction and strictly control the approval of new projects."
The meeting also calls for an appropriate growth for the loans in the next year.
Analysts cited the monetary policy as an example, as China loaned out 7.37 trillion yuan in the first half of this year, but only 1.55 trillion yuan in the second half.
Yang Zhiyong, a researcher from the Chinese Academy of Social Sciences (CASS) said that although the meeting set the tone of the fiscal and monetary policies as "moderately easy", other factors like commodity and resource prices may exert large influences on the policies.
He added that the saying of "moderately easy" actually implies lots of room to adjust the policies.
The academic also predicted that under the pressure of the factors like commodity and resources prices, the policies could be adjusted again in the middle of next year.
