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CHINADAILY Editorial

Meeting charts course for growth in new era

chinadaily.com.cn | Updated: 2017-12-20 21:55
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High-quality development and prevention of major risks are top of the agenda in the policy road map laid out at this year’s Central Economic Work Conference, which wrapped up on Wednesday.

The policy objectives and directions outlined in the road map will not only guide the Chinese economy through the coming year, they are also crucial to the long-term development of the world’s second-largest economy.

Over the more than three decades since the launch of reform and opening-up, China has maintained an impressive growth rate that has propelled it to become the world’s second-largest economy. However, the years of no-holds-barred expansion have caused a pile-up of problems and risks that can no longer be put aside.

As General Secretary Xi Jinping stated at the 19th National Congress of the Communist Party of China in October, the country has entered a new era where “uneven and inadequate development” is at odds with “people’s ever-growing demands for a better life.”

It was made clear then that the country will seek to meet those demands and transition to more balanced, sustainable and efficient development by relaxing the growth targets in pursuit of higher quality growth. The Central Economic Work Conference has added flesh to the bones of how that higher quality is to be pursued.

The drive to contain leverage and prevent financial risks is to the fore in these efforts, initial headway having been made since the financial authorities tightened regulation last year, with liquidity growth slowed significantly, local government debt under control, and financial irregularities reduced.

The risk control efforts will be further strengthened next year in order to forestall major risks and resolutely fight irregular and illegal financial activities.

Although China’s economic growth has slowed this year, it has also shown marked improvements, as the Chinese Academy of Social Sciences highlighted in its annual outlook, and this trend is expected to continue next year with the tightening of financial oversight and property price control and the strengthening of environmental protection.

While it can be expected that the road ahead will not be smooth, especially given the trade headwinds that seem set to gather strength because of the economic nationalism of the current US administration, China’s leaders will determinedly push ahead with their efforts to achieve their goal of realizing higher quality growth, which is the fundamental requirement for “addressing all problems”, as Xi has said.

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