Xi charts course for Chinese economy at new starting point for modernization

BEIJING -- Following a key meeting that set its economic policy priorities for 2023, China is poised for stronger and healthier growth as Xi Jinping leads the world's second-largest economy to navigate risks and challenges at a critical juncture.

Xi, general secretary of the Communist Party of China (CPC) Central Committee, delivered an important speech at the annual Central Economic Work Conference, held in Beijing on Dec. 15 and 16. His speech analyzed China's current economic situation and arranged next year's economic work.

It was the first meeting of its kind to be held since the 20th CPC National Congress in October, which called for the advancement of national rejuvenation on all fronts through a Chinese path to modernization.

DEVELOPMENT AS TOP PRIORITY

Speaking at the meeting, Xi reiterated that development should continue to be the CPC's top priority in governing and rejuvenating China.

The Chinese economy has shown remarkable resilience in development this year with a "V-shaped" trajectory, recording a 3.9 percent rebound in the third quarter after growth slowed to 0.4 percent in the previous quarter.

This achievement was built on past successes. China has seen average annual economic growth of over 5 percent over the past five years, higher than the global average. Its economic output has doubled in the past decade, and China is a leading contributor to global economic growth.

China is standing at "a new, higher historical starting point in development," Xi said.

He said that the country should pursue high-quality development, ensuring both appropriate economic growth and structural improvements and upgrades.

While highlighting development as a priority, Xi also stressed adhering to the general principle of pursuing progress while ensuring stability, upholding and improving basic socialist economic systems, promoting high-level opening up, and advancing economic development under the rule of law.

OPPORTUNITY IN CRISIS

Acknowledging a multitude of difficulties and challenges facing economic development next year, Xi said efforts must be made to foster an overall improvement to the economy, effectively control risks and ensure social stability.

While the global economy is troubled by the spread of COVID-19, the Ukraine crisis, food and energy insecurity, and disrupted industrial and supply chains, Xi said there is opportunity in crisis and crisis can turn into opportunity, and China can achieve better development by seizing opportunities and making good use of them.

China boasts advantages in its socialist market economy systems, vast market demand, well-integrated industrial systems, and diligent and intelligent workers and entrepreneurs, Xi said, calling for efforts to "truly unleash these strengths and vitality."

China will continue to implement a proactive fiscal policy and a prudent monetary policy in 2023, according to the meeting. It also laid out priorities for industrial, social, and science and technology policies, and stressed the importance of coordinating COVID-19 response with economic and social development.

ADDRESSING KEY LINKS

Noting that there are myriad tasks in the economic work for 2023, Xi underlined the need for actions to improve public expectations, boost confidence in development, and focus on major and key links.

"Lackluster demand is an outstanding problem in the current economic operation," Xi said, urging vigorous implementation of the strategy to expand domestic demand and more forceful measures to boost the virtuous cycle of social reproduction.

He stressed that China should accelerate the construction of a modern industrial system. Noting that China has the most complete industrial system in the world, and the demand in its domestic market has the greatest potential globally, Xi said these factors provide China with a strong guarantee and the greatest confidence to cope with containment and suppression.

Xi said China will unswervingly continue its reform to develop socialist market economy, and consolidate and develop the public sector while encouraging, supporting and guiding the development of the non-public sector.

On improving the drive for and utilization of foreign investment inflows, Xi said that it is important to not only retain the quality foreign investment that is already in China, but also attract even more high-quality foreign investment to the country.

In terms of effectively forestalling and defusing major economic and financial risks, Xi ordered efforts to address both the symptoms and root causes of problems, and firmly guard against systemic risks.

Observers said that, despite the complex external environment and domestic pressure, the fundamentals of the Chinese economy remain sound in the long run, and existing and new supportive policies will combine to boost economic recovery next year.

The views don't necessarily reflect those of Qiushi Journal.