Editorial | Politburo prepared to do all that it takes in the name of growth
Beijing leaders make it clear that ‘more active’ policies are on the way through the use of fiscal and monetary measures
Investors are alert to any clue to China’s targeted growth rate next year. A hint can be expected from the coming central economic work conference, which sets the stage for the plenary sessions of the National People’s Congress and its advisory body, expected early next year.
But party leaders, at a meeting of the Politburo, have already set a new tone to be expected in the economic policies of the world’s second biggest economy. Initial market reaction was positive.
A summary of the meeting contains language not used by leaders since the 2009 global financial crisis, such as adopting a “more active” set of policies to expand domestic demand in 2025 with “moderately loose” monetary tools.
From the wording, Beijing is braced for economic headwinds including the Trump factor and its tariff increases.
Despite likely obstacles, the wording also shows China will still need to set a relatively high growth rate – comparable with this year’s target of around 5 per cent – because it needs to expand at that pace to complete economic restructuring and create enough jobs.
As a result, Beijing appears ready to use fiscal policy to stimulate the economy.
According to a state media report, the government will support stabilisation of the property and stock markets and the integrated development of technology and industry.
