Advertisement
Macroscope | Why China needs to retain entrepreneurial spirit to ensure its future prosperity
- In addition to outlining the most pressing issues facing the economy, the recent work conference also emphasised the vital role of the private sector
- Entrepreneurs are needed to help China achieve common prosperity and create a bigger economic pie for the whole country
Reading Time:3 minutes
Why you can trust SCMP
In the face of a continued global pandemic, coupled with an increasingly complex and uncertain external environment, China convened its annual central economic conference earlier this month to map out an economic plan for the coming year.
Advertisement
The meeting also attempted to address five crucial issues in the hope of achieving a consensus on reforming economic development.
The character for “stability” appears 25 times in the official statement issued after the conference. Stability is a high priority because China’s economy is facing tremendous pressure from shrinking demand, a supply crunch and an unclear economic outlook.
The extent and speed of support announced at the conference in a variety of areas – from fiscal and monetary policy to real estate, manufacturing and technology – to help boost the economy is unprecedented. In this way, China will seek progress with stable growth.
The Chinese economy has seen much disruption over the past year with a series of policy changes in sectors such as big tech, real estate, education and the environment. Local and central government departments have sometimes implemented conflicting policy measures because of insufficient coordination.
Advertisement
Precious time was lost as a consequence and long-term goals were sacrificed for short-term gains. Under such circumstances, the masses bore the brunt of the disruptions as risks increased significantly.
Advertisement