Stability is the most important word for the Chinese economy

The most important word for Chinese economic policy in 2022 is “stability”, according to a senior Chinese Communist Party economic official.

There are many hidden risks in the economy and financial sector, and China cannot return to the old path of growth, Han Wenxiu, executive vice minister of the central finance and economic affairs commission, said Saturday. of the party, at an online event. Han was explaining the economic plans for 2022, which the Communist Party released on Friday.

The real estate sector is large, has a long supply chain, and accounts for a high proportion of the economy, capital investment, local government revenue and financial institution lending, Han said. It is of key importance in the economy, financial stability and risk prevention, and China should explore a new development model for the industry, he said without giving further details.

“All regions and agencies should take responsibility for maintaining economic stability, actively introduce policies that can help stabilize the economy, and be cautious in imposing measures that will have a contractionary effect,” Han said.

To ensure the economy grows within a reasonable range next year, the government will take measures to boost activity and confidence among market entities, senior official Ning Jizhe said at the event. It will also deepen enforcement of fair competition policies and strengthen anti-monopoly regulations, he said.

Meanwhile, consumption and investment still face multiple obstacles, said Ning, who heads the statistics bureau and is vice chairman of the National Development and Reform Commission. “Domestic demand remains insufficient,” he said, adding that the government “needs to fully explore the potential of domestic demand in 2022.”

While the consumption of goods has increased, the expansion of services such as tourism, transport or entertainment has been “seriously affected” because they involve contact and concentration of people, he said. However, the government plans to continue its policies to control any outbreak of COVID-19, he said.

The government will implement policies to stimulate demand for major goods such as cars and household appliances and accelerate the construction of e-commerce infrastructure and delivery networks in rural areas, Ning said. It will also increase effective investment in programs such as new infrastructure, new urbanization, hydropower and transport, and accelerate progress in 102 major projects of the 14th Five-Year Plan, he said.

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