Implement the Decisions and Plans of the CPC Central Committee and Make Concrete Strides in High-Quality Development

At the Central Economic Work Conference in December 2024, President Xi Jinping reviewed economic work for 2024 and analyzed the current economic landscape. He also set out plans for economic work in 2025, charting the way forward and providing fundamental guidance for high-quality economic development in China.

I. New achievements in economic and social development

In 2024, facing a complex and challenging landscape marked by mounting external pressures and growing domestic difficulties, the Central Committee of the Communist Party of China (CPC) with Xi Jinping at the core responded calmly and took comprehensive steps, most notably adopting a raft of incremental policies in late September. It conducted robust and well-targeted macro regulation and effectively responded to risks and challenges. These efforts successfully boosted market confidence and drove a notable economic rebound. Solid strides were made in promoting high-quality development, and the main tasks and targets for economic and social development for the year were accomplished. 

Ensuring overall stable performance and steady growth of the economy

In the first three quarters of 2024, China’s GDP increased by 4.8% year-on-year, as growth rates in both the industrial and service sectors picked up. In November, the added value of large industrial enterprises registered a 5.4% increase year-on-year, with the growth rate accelerating by 0.1 percentage points compared to the previous month. China’s Service Production Index went up by 6.1%, with the real estate industry seeing an increase of 2.1 percentage points compared to the previous month. Investment and consumption continued to expand. During the first 11 months of the year, fixed asset investment rose by 3.3% compared to the same period last year, and manufacturing investment increased by 9.3%, playing a greater role in supporting growth. In November, total retail sales of consumer goods increased by 3% year-on-year, exceeding average growth for the third quarter. 

Employment and prices remained generally stable. During the first 11 months of the year, the average urban surveyed unemployment rate stood at 5.1%, showing a decrease of 0.1 percentage points compared to the annual average for 2023. The supply of essential consumer goods was abundant. In December, the Consumer Price Index rose by 0.1% year-on-year, and the national industrial Producer Price Index fell by 2.3% compared to the previous year, with the decline narrowing by 0.2 percentage points from the previous month. Market expectations steadily improved. The Manufacturing Purchasing Managers’ Index stood at 50.1% in December, remaining in expansion territory for the third consecutive month.

Propelling continuous development of new quality productive forces 

Our capacity for sci-tech innovation continued to increase. In 2024, China climbed to 11th place in the Global Innovation Index rankings, placing it among the fastest-rising countries of the past decade. Sci-tech advances were applied at a faster pace, and the volume of technology transactions remained brisk. In 2024, the total number of valid Chinese invention patents reached 4.756 million, while technology contract transactions increased by 17.8% year-on-year through the first three quarters. 

New growth drivers developed rapidly. In the first 11 months, the value added of high-tech manufacturing enterprises registered 9% year-on-year growth. Output of advanced technology products also surged, with integrated circuits up 23.1%, industrial robots up 11.1%, and photovoltaic batteries up 14.8%. China has cultivated over 140,000 small and medium enterprises (SMEs) that use special and sophisticated technologies to produce novel and unique products, 14,600 “little giant” enterprises centered on these technologies and products, as well as 300 distinctive SME industrial clusters. We made faster progress in advancing the transition to green, low-carbon development. In 2024, China installed over 300 million kilowatts of renewable energy capacity, accounting for more than 85% of all new capacity. Production and sales of alternative-energy vehicles surpassed 10 million units for the first time—reaching 11.345 million and 11.262 million, respectively, in the first 11 months, year-on-year increases of 34.6% and 35.6%.

Further deepening reform and opening up

Economic structural reform advanced strongly. At its third plenary session, the 20th CPC Central Committee set forth systematic plans for further deepening reform across the board, mapping out a comprehensive blueprint for reform on the new journey in the new era. We made thorough efforts to develop a unified national market. We advanced initiatives to deepen and upgrade SOE reform to high standards and continued to improve the layout and adjust the structure of the state-owned sector. We also continued to tap the vitality of the private sector. Excluding real estate, private investment increased by 6.2% year-on-year in the first 11 months of 2024. 

There was rapid growth in both foreign trade and exports. In the first 11 months of the year, the total value of goods imports and exports reached 39.79 trillion yuan, a year-on-year increase of 4.9%, with exports rising by 6.7%. We continued to improve the export mix; exports of mechanical and electrical products increased by 8.4%, accounting for 59.5% of China’s total export value. The structure of utilized foreign investment was also steadily refined. In the first 11 months of the year, the number of newly established foreign-invested enterprises nationwide increased by 8.9% year-on-year, a new record for an 11-month period. Utilized foreign investment in high-tech manufacturing reached 82.53 billion yuan, representing 11% of the national total and an increase of 0.3 percentage points over the same period in 2023. 

We made solid progress in pursuing high-quality Belt and Road cooperation. In the first 11 months, the total value of imports and exports between China and other BRI countries rose by 6% year-on-year, with exports increasing by 8.2%. We ensured the smooth operation of China Railway Express (CR Express) services, with the total number of trips exceeding 100,000. In 2024, 19,000 trips were completed, and total freight amounted to 2.07 million TEUs, increases of 10% and 9%, respectively.

Construction on the bridge over the Lanlugang River on Shanghai’s demonstration zone urban railway line progresses smoothly in Jinze Town, Qingpu District, December 2, 2024. It is currently the longest continuous hybrid girder bridge with a ballast-free track for urban railways in China. As the only country in the world to possess all industrial categories listed in the UN’s International Standard Industrial Classification of All Economic Activities, China has led the world in manufacturing value added for 14 consecutive years. CNS / PHOTO BY ZHONG XINWANG

Defusing risks in key areas with well-ordered steps 

Our ability to ensure security in key areas was enhanced. Food security was further consolidated, with grain production reaching 706.5 million metric tons in 2024, up 1.6% from 2023. Following nine consecutive years of keeping output above 650 million metric tons, this marked the first time grain output surpassed the 700 million mark. We worked harder to develop energy production, supply, storage, and marketing systems, and China’s energy self-sufficiency rate remained steady at over 80%. We improved the resilience and security of industrial and supply chains, with China’s manufacturing added value accounting for about 30% of the global total. Chinese supply continued to serve as a cornerstone of the world economy. 

We drove positive shifts in the real estate market through integrated measures designed to stem the downturn and restore stability in the sector. In November, nationwide sales of newly constructed commodity housing, measured by floor area, posted positive annual and monthly growth for the second consecutive month, signaling a reinvigoration of the market. Effective steps were taken to defuse and control risks related to local government debt and small and medium financial institutions, with substantial progress made in clearing existing debts. At present, China’s government debt ratio stands at about 70%, significantly below that of other major economies and emerging markets. Government debt risks thus remain manageable overall. Steady progress was made in defusing risks in high-risk small and medium financial institutions through reform, and we ensured that no systemic risks arose. 

Making solid and effective progress in ensuring people’s wellbeing

The personal incomes of urban and rural residents rose steadily. Per capita disposable income nationwide reached 30,941 yuan in the first three quarters of 2024, representing real year-on-year growth of 4.9% and exceeding economic expansion by 0.1 percentage points. The disparity between urban and rural incomes continued to narrow, with the ratio of urban to rural per capita disposable income falling to 2.46:1, a reduction of 0.05 percentage points from the previous year.

The social security system was further enhanced. Nationwide, the number of social security card holders reached 1.388 billion, covering 98.5% of the population. By the end of November, participation in basic old-age pension, unemployment insurance, and workers’ compensation schemes stood at 1.076 billion, 246 million, and 304 million people, respectively. We continued to improve the quality of basic public services and expanded the supply of public-interest services in areas such as eldercare, childcare, education, and healthcare. Notably, the service systems for eldercare and childcare saw further improvement, with nearly 100,000 institutions providing childcare services and over 410,000 eldercare service institutions and facilities operating nationwide.

II. Challenges and opportunities facing the Chinese economy

At present, the adverse impact of changes in the international environment is increasing. China’s economy also faces many difficulties and challenges. These are unavoidable growing pains that must be endured as we restructure the economy and make the shift to medium- and high-end manufacturing. Such challenges cannot be avoided or bypassed in the course of development and progress. At the same time, China’s economy enjoys a stable foundation, numerous advantages, strong resilience, and tremendous potential. The fundamental trend of long-term economic growth and the conditions supporting it remain unchanged.

The increasingly complex and severe external environment 

Momentum for global economic growth is flagging. According to the International Monetary Fund (IMF), global economic growth is projected to reach only 3% over the next five years, marking the lowest rate on record since 1990. Within this forecast, developed economies are expected to achieve annual growth of just 1.7%, while emerging markets and developing economies are predicted to expand at 4%. Competition between major countries has become increasingly fierce, and geopolitical conflicts have escalated. These developments could trigger a new wave of shocks across the global political and economic landscape. We are also witnessing a backlash against economic globalization, marked by a significant rise in trade barriers, which are undermining the stability of global industrial and supply chains. Major economies have successively embarked on interest rate reduction cycles, accelerating cross-border capital flows and potentially creating greater volatility in international economic and financial markets.

However, we should also recognize that numerous favorable factors remain in play. Global trade continues to show considerable resilience, with the UN Trade and Development reporting that trade volumes reached an unprecedented US$33 trillion in 2024—a growth of 3.3%—and are on track to set new records in 2025. This will create new development opportunities for international trade. Emerging economies, meanwhile, are exhibiting strong development momentum and growing into vital engines for the global economy. Their influence on the international stage also continues to grow. According to IMF estimates, emerging economies’ share of global GDP surged from 21% in 2000 to 41.2% in 2023. Projections indicate this figure will climb to 43.2% by 2028. Furthermore, the world has entered a period of intense activity in technological innovation. Major frontier technologies—such as artificial intelligence, quantum computing, biotechnology, and new energy systems—are advancing at a rapid pace. These breakthroughs are creating fresh opportunities to cultivate new growth drivers and transform industrial structures. 

Growing challenges for consolidating the domestic economic recovery and growth 

Effective demand remains weak. There are pressures on job creation and income growth. We lack robust endogenous drivers for consumer spending, face investment growth constraints, and are confronted with difficulties in the export sector. We are also experiencing pain points in the transition from old to new growth drivers, while some enterprises are facing operational and production difficulties. In some sectors, many hidden risks exist.

That said, we should also acknowledge the tremendous resilience and potential of China’s economy. The positive factors underpinning high-quality development continue to accrue. China’s economic strength, technological capabilities, and composite national power are growing steadily, and solid new strides have been made in advancing Chinese modernization. In a word, China’s economy enjoys stable foundations, numerous advantages, strong resilience, and tremendous potential.

Shoppers participate in a trade-in scheme at Tianhong Electronics Mall in Miluo City, Hunan Province, September 24, 2024. In 2024, China worked hard to boost domestic demand. As of December 13, its policy-backed trade-in program for consumer goods had spurred over 1 trillion yuan in sales of related products. PHOTO BY XINHUA REPORTER CHEN SIHAN

—Strong and effective political guarantees

As long as we follow the centralized and unified leadership of the CPC Central Committee and the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we can undoubtedly create a powerful force for driving healthy economic and social development, ensuring long-term stability, and seizing the initiative to advance development and safeguard national security.

—Growing evidence of institutional strengths

Since the 18th CPC National Congress in 2012, the CPC Central Committee led by Xi Jinping has regarded institutional building as the main task. By reinforcing top-level design and deepening comprehensive reform, it has been able to more effectively translate our country’s institutional strengths into effective governance. At present, we are working to fast-track the implementation of over 300 major reform measures introduced at the third plenary session of the 20th CPC Central Committee. These efforts will see us tackling deep-rooted institutional and structural problems and creating strong impetus and solid institutional guarantees for advancing Chinese modernization.

—Vast supply and demand potential

On the supply side, China is the only country in the world to possess all industrial categories listed in the United Nations’ International Standard Industrial Classification of All Economic Activities. China has led the world in manufacturing value added for 14 consecutive years. As industrial transformation and upgrading accelerate and new quality productive forces are steadily developed, China’s supply system is poised to reach greater heights in terms of quality and standards. On the demand side, China is home to a population of over 1.4 billion, a middle-income group exceeding 400 million, and more than 180 million business entities, making it an enormous market with the greatest growth potential in the world. By leveraging new industrialization and new urbanization, the green and low-carbon transition, and the digital, smart, and network-based development of industry, we will be able to effectively unlock the demand potential in China’s domestic market.

—More robust and effective macro policies

The newly introduced policy package and existing policies will both continue to drive impact. We now have a richer range of policy tools at our disposal, and there remains ample room for further counter-cyclical adjustments. We will move faster to carry out major initiatives to support the implementation of major national strategies and security capacity-building in key sectors as well as large-scale equipment upgrades and trade-in schemes for consumer goods. Ultra-long special treasury bonds, local government special-purpose bonds, and central budget investments will be more effectively utilized. We believe that these policies will combine to steadily create greater impacts and provide strong support for the sustained recovery and growth of the economy. 

III. Grasping the laws underlying economic work

At the Central Economic Work Conference, President Xi reviewed and summarized China’s practical experience of pursuing economic development. This has helped deepen and expand the CPC’s understanding of the laws underlying our economic work. These insights will provide us with sound guidance for accomplishing this work and advancing all-around Chinese modernization through high-quality development.

The centralized, unified leadership of the CPC Central Committee as the fundamental guarantee for accomplishing economic work

As President Xi has emphasized, the CPC exercises overall leadership and coordinates the efforts of all sides. Since economic work is our central task, Party leadership must naturally extend to every aspect of this endeavor. Practice has shown that as China’s economy grows in scale and encounters more difficult challenges, steering our course from the helm becomes even more critical. At pivotal moments and key junctures, the CPC Central Committee has acted promptly to size up the situation and make decisions and plans, ensuring that the giant ship of China’s economy continues to cleave the waves and sail steadily toward the future.

Managing the relationship between an efficient market and a well-functioning government and creating an economic order that is both dynamic and well-regulated

The market’s role in determining resource allocation constitutes a general law of market economies. In essence, a market economy is based on market-driven resource allocation. It should be recognized, however, that failures and disorder can occur in markets. When this happens, the government must promptly step in and take measures to correct market failures, regulate competition, and optimize the market environment. Only by promoting both an efficient market and a well-functioning government—ensuring that what should be delegated to the market is fully and appropriately delegated, and what requires government oversight is effectively and thoroughly managed—can we ensure both vitality and order in economic activities. In our economic work on the new journey, it is imperative to ensure that the market plays the decisive role in resource allocation and that the government better fulfills its role. This will enable us to unleash the internal drive and creativity of the whole of society and make resource allocation as efficient and productive as possible.

Managing the relationship between aggregate supply and demand and ensuring smooth flows in the national economy

Supply and demand exist in a dialectical relationship featuring both opposition and unity. Without demand, supply cannot exist; without supply, demand cannot be satisfied. At present, China is experiencing weak domestic demand, while external demand is being adversely affected by the growing unpredictability and instability of the global landscape. Expanding domestic demand is, therefore, important not only for economic stability but also for economic security. It should be viewed not as a temporary measure but a strategic move. In carrying out economic work, we must coordinate our efforts on the supply and demand sides to ensure a better balance and greater compatibility between the two. We must deepen supply-side structural reform, accelerate efforts to address shortcomings in domestic demand, especially consumption, and work to create a higher-level dynamic balance where demand drives supply and supply creates demand.

Managing the relationship between fostering new growth drivers and upgrading old ones and developing new quality productive forces in line with local conditions

Traditional industries still account for over 80% of China’s manufacturing sector. Developing new quality productive forces does not mean neglecting or abandoning these sectors. Rather, it requires actively nurturing emerging industries to help them take firm root while ensuring the stable development of traditional industries. At present, regions vary in the industrial foundations and comparative advantages they possess for developing new quality productive forces. As such, it is vital that local governments develop tailored, well-conceived plans to cultivate new growth drivers and upgrade existing ones. In carrying out economic work, we need to foster emerging industries and plan for industries of the future to enable “new saplings to grow into towering trees.” At the same time, we must transform and upgrade traditional industries using advanced and cutting-edge technologies to allow “old trees to sprout new branches.” This will ensure that the transition from old growth drivers to new ones is smooth and steady.

Managing the relationship between optimizing the allocation of new resources and making the best use of existing ones and improving the efficiency of resource allocation

By optimizing the allocation of new resources, we can promote economic structural upgrading and create new space for development. By making the best use of existing resources, we can enhance economic vitality and stabilize the fundamentals of economic growth. Through years of development, China has accumulated significant assets as well as liabilities. Management must be strengthened in both respects. In the year ahead, to ensure optimal allocation of new resources and efficient use of existing ones, we must promote the renewal and upgrading of industrial parks and implement policies to replace the existing hidden debts of local governments and to utilize existing land resources. We must improve coordination between economic sectors and optimize the distribution of production factors. These efforts will help bolster the endogenous drivers for economic growth. 

Managing the relationship between raising quality and expanding total output and strengthening the material foundations for Chinese modernization

High-quality development should be underpinned by quantitative expansion, with growth in both economic scale and total output. However, its ultimate goal should be qualitative transformation based on improvements in both quality and efficiency. At present, imbalances and inadequacies in development remain a prominent issue for China, while Chinese modernization sets a high bar for economic growth in terms of speed, structure, quality, and efficiency. In carrying out economic work, we must leverage China’s diverse strengths, including its vast economy, enormous market, strong industrial support capabilities, and a large pool of highly skilled, industrious, and intelligent workers and entrepreneurs. On this basis, we should work to raise the quality of growth while appropriately increasing output, so as to lay an even stronger material and technological foundation for advancing Chinese modernization through high-quality development.

IV. Fully implementing the decisions and plans of the CPC Central Committee regarding economic work

At the Central Economic Work Conference, comprehensive and systematic arrangements were made concerning the overall requirements, policy orientations, and key tasks for economic work in 2025. At the meeting, a strong emphasis was placed on the need to pursue growth while ensuring economic stability, promote stability through progress, uphold fundamental principles and break new ground, establish the new policies before abolishing the old, and promote systematic integration and efficient coordination. 

Intensifying counter-cyclical macro policy regulation and stimulating domestic demand across the board

We will implement a more proactive fiscal policy and an appropriately accommodative monetary policy. To enhance policy coordination, we will ensure better alignment between fiscal, monetary, employment, investment, consumption, industrial, regional, pricing, environmental, regulatory, and other policies. We will also see that these policies are in sync with measures for reform and opening up. Both economic and non-economic policies will be included in evaluations to ensure the consistency of macro policy orientations. This will help increase overall policy effectiveness. 

To vigorously boost consumption, we will increase support for large-scale equipment upgrades and consumer goods trade-in programs, launch special initiatives to stimulate consumption, and take steps to increase the earnings of low and middle-income groups while reducing their financial burdens. We will create a full range of new consumption scenarios and strive to expand the scale, enhance the quality, and boost the efficiency of consumption. To expand effective investment, we will strengthen support for the implementation of major national strategies and security capacity-building in key areas and coordinate the development of hard and soft infrastructure. To realize tangible progress as quickly as possible, we will leverage government investment to effectively drive nongovernmental investment and continue to encourage the investment of private capital in major projects. Furthermore, we will enhance the analysis and communication of policies and economic conditions, respond promptly to public concerns, and better manage expectations. 

Accelerating the development of new quality productive forces and building a modern industrial system

We will continue to strengthen China’s capacity for sci-tech innovation. We will step up basic research, strive for breakthroughs in core technologies in key fields, boost China’s strength in strategic science and technology, and carry out forward planning for major sci-tech projects. We will provide strong support for the high-quality development of manufacturing and take integrated measures to address “race to the bottom” style competition. Steps will be taken to regulate supply and demand and ensure better linkages between production and sales. We will leverage digital and green technologies to transform and upgrade traditional industries. We will accelerate the development of emerging industries and industries of the future and place a strong focus on promoting high-quality development of the digital economy to cultivate a number of internationally competitive digital industry clusters.

Leveraging the leading role of economic reform and ensuring the implementation of landmark reform measures 

We will prioritize the development of a unified national market, implementing relevant guidelines and releasing a newly revised version of the negative list for market access to clear away access barriers. Special initiatives will be launched to regulate enterprise-related law enforcement, and stronger regulation will be introduced to promote the healthy development of the platform economy. We will stay committed to both unswervingly consolidating and developing the public sector and unswervingly encouraging, supporting, and guiding the development of the non-public sector. As part of these efforts, initiatives to deepen and upgrade SOE reform will be completed to high standards, and a private sector promotion law will be promulgated. We will move faster to refine the modern logistics system and cut distribution costs throughout society.

International visitors at the booth of China Railway Rolling Stock Corporation (CRRC) in the Advanced Manufacturing Chain exhibition area of the Second China International Supply Chain Expo, Beijing, November 27, 2024. The event, which ran from November 26 to 30, is the world’s first national-level exhibition focused on supply chains. PHOTO BY XINHUA REPORTER YIN DONGXUN

Better coordinating the strategies of “bringing in” and “going global” and expanding high-standard opening up

We will take the initiative to expand unilateral opening up in a well-ordered way. We will steadily advance institutional opening up and accelerate the implementation of core policies for the Hainan Free Trade Port. We will redouble efforts to ensure the stability of foreign trade and investment. Measures will be taken to actively develop trade in services, green trade, and digital trade, and trials will be expanded to open sectors such as telecommunications, medical services, and education, to ensure further progress in opening the service sector. We will make solid strides in high-quality Belt and Road cooperation, refine the overseas comprehensive service system, and press forward with both major signature projects and “small but beautiful” public wellbeing projects. The safe and smooth operation of CR Express services will be ensured.

Effectively preventing and defusing risks in key areas and better ensuring both development and security

We must take holistic measures to consolidate the foundations for food security. We will carry out the food crop production strategy based on farmland management and technological application, implement responsibility systems for protecting arable land and ensuring food security, and keep grain acreage generally stable. We will improve our capacity to ensure energy and resource security and take steps to meet peak energy needs during summer and winter. Thorough efforts will be made to ensure the security of major industrial and supply chains. We will continue working to stem the downturn and restore stability in the real estate market and foster a new development model for this sector. Effective steps will be taken to replace the hidden debts of local governments, and progress will be made in prudently defusing risks in local small and medium financial institutions.

Promoting coordinated development between urban and rural areas and between regions and expanding the space for economic development

We will carry out a five-year action plan for implementing the new people-centered urbanization strategy. This will see us moving faster to grant permanent urban residency to eligible people who move from rural to urban areas and promoting coordinated development among cities of all sizes. We will consolidate and expand our achievements in poverty alleviation, take solid steps to advance all-around rural revitalization, and work to raise the overall returns and competitiveness of the agricultural sector. We will leverage the synergy between the coordinated regional development strategy, major regional strategies, and the functional zoning strategy. We will both advance the implementation of regional strategies and promote coordinated and interconnected development between regions and ensure all major strategies are implemented in full and to the letter. We will boost the innovative capacity of economically developed regions and better leverage their role in driving the growth of surrounding areas, so as to foster new growth poles.

Ensuring and improving people’s wellbeing 

We will take major steps to ensure stable employment and work harder to increase incomes. We will push ahead with promoting the restoration and improvement of ecosystems and achieve further improvements in the quality of the environment. We will actively yet prudently work toward peaking carbon emissions and achieving carbon neutrality and put in place new mechanisms to facilitate the transition from controlling the total amount and intensity of energy consumption to controlling the total amount and intensity of carbon emissions. Concerted efforts will be made to cut carbon emissions, reduce pollution, pursue green development, and boost economic growth. 

We will improve the social security system and boost the supply and quality of public services. We will expand public-interest eldercare services, vigorously develop integrated nursery and childcare services, and continue efforts to guarantee supplies of daily necessities. Every effort will be made to ensure people’s basic living needs are met.

(Originally appeared in Qiushi Journal, Chinese edition, No. 2, 2025)