Chinese Premier Li Qiang on Monday presided over a State Council executive meeting to make arrangements for the implementation of the decisions and plans of the Central Economic Work Conference.
The meeting stressed that all departments of the State Council should formulate and implement the action plans in accordance with the directives made by the Communist Party of China (CPC) Central Committee, so as to ensure all tasks are carried out in an effective and orderly manner.
The meeting made arrangements to optimize and improve the management mechanism of special-purpose bonds issued by local governments, pointing out that a "negative list" management approach should be implemented for the areas where the special-purpose bonds can be allocated. It was also decided to allow the use of these bonds for land reserves and to support the acquisition of existing commercial housing for use as affordable housing.
The meeting discussed policies and measures to promote the high-quality development of government investment funds, pointing out the needs to establish a scientific and efficient management system, to develop and strengthen long-term capital and patient capital, and to improve a responsibility mechanism where rights are consistent with duties, and incentives are compatible with constraints.
The meeting heard a report on the progress of the three-year campaign for addressing the root causes of workplace accidents to ensure work safety, emphasizing the responsibility for safety supervision, the role of safety standards in guiding and safeguarding production, and the safety precautions at the end of the year.
The meeting discussed work of advancing the revitalization and development of football, and reviewed and approved a draft regulation on the management of public safety video and image information systems.
The annual Central Economic Work Conference was held in Beijing last week where Chinese leaders decided priorities for the economic work in 2025.
Chinese premier chairs State Council executive meeting on economic work
China will implement a more proactive macroeconomic policy next year, as it remains an important engine of global economic growth, said a senior official.
The remarks, made by an official from the Office of the Central Committee for Financial and Economic Affairs, came after last week's tone-setting Central Economic Work Conference.
Judging from the current economic operation, the annual economic growth is expected to be around 5 percent, and China remains an important engine of world economic growth, said the official.
Next year, China will implement a more proactive fiscal policy for the first time, and adopt a moderately loose monetary policy after having a prudent monetary policy for 14 consecutive years, according to the official.
In terms of policy intensity, China will increase the fiscal deficit rate and the issuance of ultra-long-term special treasury bonds and local government special bonds. It will also step up the fiscal expenditure to ensure a strong boost to economic growth.
In terms of policy focus, efforts will be made to optimize the fiscal expenditure structure and expand the investment areas of special bonds and their scope of use as project capital. The country will make good use of the transfer payment policy and provide solid guarantees for the three priorities at the primary level, namely people’s basic wellbeing, payment of salaries, and normal government functioning, said the official.
China will promote fiscal and taxation system reform, and strive for new breakthroughs in zero-based budget reform and take steps to move excise tax collection for some items further down the production-to-consumption chain, said the official.
The moderately loose monetary policy will further give play to the dual functions of monetary policy tools in terms of both total volume and structure, and promote faster and more capital flows to the real economy, according to the official.
The country will implement timely cuts in reserve requirements and interest rates and maintain ample liquidity, so that the growth of social financing scale and money supply will match the expected targets of economic growth and overall price level.
Efforts will be made to maintain the basic stability of the Chinese yuan exchange rate at a reasonable and balanced level.
China will also explore and expand the central bank's macro-prudential and financial stability functions, innovate financial tools, and maintain financial market stability, said the official.
China to implement more proactive macroeconomic policy in 2025
