BEIJING: China may roll out unprecedented expansionary moves in macroeconomic adjustments next year after a top-level meeting signaled a significant shift of mindset in prioritizing the expansion of domestic demand amid external uncertainties, policy researchers and economists said.
Measures in the pipeline may include the highest official projected deficit ratio on record, a sharp rise in special treasury bonds to subsidize consumer spending and direct policy support for people’s incomes, they said, making the stimulus package focus on vitalizing household consumption, in contrast with the investment-heavy approach in 2008.
This would mark a milestone in the country’s directional shift of shaping a consumption-driven economy to address domestic structural imbalances, navigate a harsher external environment and ensure a steady long-term growth trajectory, they added.
Their remarks came after the Central Economic Work Conference, at which Xi Jinping, general secretary of the Communist Party of China Central Committee, delivered an important speech, highlighting that the country must balance the relationship between aggregate supply and demand.
Boosting demand is seen as a focus of the upcoming economic work, which also aligns with Xi’s idea of promoting smooth circulation of the domestic economy to pursue the new development paradigm — an essential part of Xi Jinping’s economic thought. –The Daily Mail-China Daily news exchange item
