Chinese government agencies unveil plans to strengthen, sustain economic recovery for 2024

Chinese government agencies are placing significant emphasis on economic work and policy measures, underscoring their unwavering commitment to achieving the objectives outlined at the Central Economic Work Conference (CEWC), a tone-setting meeting for China's 2024 economic work.

The approach reflects China's confidence and determination to meet the targets for both economic and social development, fostering a positive outlook for robust economic growth in 2024, experts said.

On Tuesday, the first working day of 2024, Han Wenxiu, executive deputy director of the office of the Central Committee for Financial and Economic Affairs, said in an article published in the People's Daily that China's economic recovery and long-term improvement remain unchanged, with favorable conditions outweighing unfavorable factors.

It is expected that China's economy showed signs of improvement in 2023 compared with the previous year. In contrast to many other countries struggling with weak recoveries, soaring prices and high debt, China's economy is developing rapidly with stable employment, commodity prices and international balance of payments, Han said.

Han called for the implementation of policies that would help stabilize expectations, promote growth and boost employment. He also called for unleashing consumption potential and tapping into potential demand in the areas of urban renovation, migrant workers, education, healthcare and elder care.

The remark from Han came as top officials from major government agencies including the National Development and Reform Commission (NDRC), China's top economic planner, the Ministry of Industry and Information Technology (MIIT) and the Ministry of Finance (MOF), have delivered reports in recent days, focusing on economic work in 2024, on the heels of the CEWC.

The CEWC usually breaks down tasks in a very specific manner after the conference. With each government agency announcing its respective work arrangements at the beginning of the year, it will effectively stabilize expectations and bring significant benefits to economic stability and development, Li Chang'an, a professor at the Academy of China Open Economy Studies of the University of International Business and Economics, told Global Times on Wednesday.

The CEWC, which was held in December, called for enhancing confidence and determination.

Recent statements from various ministries and departments indicate that the government is highly focused on economic work and is strengthening macroeconomic regulation and policy coordination to achieve a positive economic recovery, Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, told the Global Times on Wednesday.

In the agency's respective report, Zheng Shanjie, head of the NDRC, emphasized the importance of stabilizing expectations and enhancing confidence in China's economic development. "We have the ability to continuously improve our economic structure, strengthen growth momentum and maintain positive development trends," Zheng said.

In a report delivered in recent days, China's Finance Minister Lan Fo'an also expressed confidence in achieving the annual targets for economic and social development in 2023, which he said will lay a solid foundation for development in 2024.

The CEWC also specifically mentioned the need to vigorously promote new industrialization, develop the digital economy and accelerate the development of artificial intelligence (AI).

Jin Zhuanglong, minister of the MIIT, highlighted the need to cultivate and expand emerging industries, proactively plan for future industries, promote the use of AI in new industrialization and green and low-carbon development in the industrial sector.

The CEWC also mentioned that proactive fiscal policies should be appropriately strengthened and improved in quality and efficiency.

Lan mentioned the MOF will further strengthen policy support and financial protection, and coordinate the use of policy tools such as taxation, transfer payments, government investment and financing guarantees.

The recent statements, which addressed all important aspects of the nation's economic work, conveyed a stable, proactive and pragmatic attitude. The introduction of these policy measures will help boost market confidence and enhance social expectations, injecting strong momentum into economic development, Wang said.

Experts expressed a high level of confidence that China was able to meet its economic growth target for 2023 of about 5 percent, and they anticipate a continued economic recovery in 2024.

China has released major economic figures for the first 11 months of 2023. Industrial output expanded at a better-than-expected 6.6 percent in November, the fastest pace in almost two years, and retail sales also showed steady 10.1 percent growth year-on-year, according to data from the National Bureau of Statistics (NBS).

Recently, several international organizations and financial institutions have raised their forecasts for China's economy and remained upbeat about China's economic outlook for 2024.

The IMF recently raised its forecast for China's GDP growth in 2023 to 5.4 percent from 5 percent in October.

Strong growth in household consumption and supportive macroeconomic policies, including a special-purpose bond issue of 1 trillion yuan ($140 billion) are highlights for China's 2024 economy, Steven Alan Barnett, senior IMF resident representative in China, told the Global Times in an exclusive interview in December.

"It is expected that China's economic development environment in 2024 will be better. The main focus of economic work for 2024 will be centered on expanding domestic demand, stabilizing foreign investment and stabilizing foreign trade," Li said.