Economic Watch: China poised to underpin economic recovery on solid basis

A worker is seen at a workshop of a new energy cell material company in Qinzhou port area of the China (Guangxi) Pilot Free Trade Zone in south China's Guangxi Zhuang Autonomous Region, Nov. 29, 2023. (Xinhua/Zhang Ailin)

BEIJING, Dec. 15 (Xinhua) -- As 2023 draws to an end, officials noted China's economic achievements this year and expressed the belief that there is solid ground for the country to cement the momentum of recovery in the next year.

After the annual Central Economic Work Conference that concluded earlier this week mapped out economic policy priorities for 2024, officials forecast that an array of measures will be taken to implement these decisions to secure an effective improvement in quality and a reasonable increase in quantity.

GREAT POTENTIAL

China is set to achieve its major goals in the economic sphere this year, said Han Wenxiu, executive deputy director of the Office of the Central Committee for Financial and Economic Affairs.

"Compared with last year and other countries, China's development is convincing," Han said, adding that China contributed about one-third of the world's growth in 2023, serving as the most powerful engine.

He pointed out risks and challenges facing China's economic recovery, including insufficient effective demand, excess capacity in some industries, some enterprises having difficulties in their operations, and sluggish world economy and trade.

Nevertheless, the official stressed the tremendous potential of the Chinese economy, citing a colossal domestic market, adequate room left for policymakers to roll out new macroeconomic measures, deepening reforms, a complete industrial system established in the country, and scientific and technological innovation.

Wu Hao, an official with the National Development and Reform Commission, China's top economic planner, also expressed confidence in the future performance of the economy.

He said that China has built the largest high-speed rail network and expressway network on the planet, as well as world-class ports, while the 1.4-billion population with a 400-million middle-income group forms an enormous market.

"If we make full use of the immense market, the potential and vigor of the Chinese economy will be continuously unleashed," Wu said.

HIGH-QUALITY DEVELOPMENT

The Central Economic Work Conference underscored "high-quality development" and placed it as the country's top priority.

Han said that development in the new era must feature high quality, guided by the new development philosophy -- innovative, coordinated, green, open, and shared development.

To implement the conference's decisions, financial funds will actively support scientific and technological innovations next year, including key core technologies and basic research, said Lin Zechang, head of the comprehensive department of the Ministry of Finance.

Financial policies will also aim at spurring effective demand by boosting government-led investment and raising people's income through multiple channels to strengthen their spending power, according to Lin.

Tang Wenhong, assistant minister of commerce, said that China will move to maintain its appeal to foreign investors and support foreign trade.

China will continue to reasonably shorten negative lists for foreign investment and work to lower the threshold to telecommunications and medical care markets for foreign businesses, he said.

To bolster foreign trade, China will step up cooperation with Belt and Road countries, expand trade routes and build high-standard free trade zones, Tang added.