Understanding China's development logic from the Central Economic Work Conference: Global Times editorial

BEIJING, Dec. 13, 2024 /PRNewswire/ -- The Central Economic Work Conference was held in Beijing from Wednesday to Thursday. As the annual guiding event for China's economic work, the conference primarily answers to the questions of "how to assess this year" and "what to do next year," attracting significant attention from the outside world. To some extent, the conference focuses on "managing our own affairs," but due to the deep integration of China's economy with the rest of the world, it inevitably becomes an important event in the global economic arena. 

This year, China's economy faces numerous difficulties and challenges both domestically and internationally. Externally, there has been a rise in trade protectionism and a resurgence of deglobalization, while internally, there are pressures including supply shocks, shrinking demand and weakened expectations, as well as a combination of cyclical and structural issues. 

Under the strong leadership of the Communist Party of China Central Committee, a comprehensive package of economic stimulus policies has been rapidly implemented and has achieved positive results. This year's major annual goals and tasks of economic and social development are to be successfully accomplished. 

This is a hard-won achievement, showcasing China's economic resilience and development potential once again. It indicates that China's contribution to world economic growth will remain around 30 percent, and China will continue to be the largest engine of global economic growth. This is of great importance to global development and security. 

What draws particular attention is that at the Political Bureau of the CPC Central Committee meeting in December, it was explicitly stated for the first time to "strengthen unconventional counter-cyclical adjustments." This is a significant deployment made after a deep understanding of the economic situation. 

Measures put forward by the Central Economic Work Conference such as a "more proactive" fiscal policy, a "moderately loose" monetary policy and the implementation of industrial policies to "comprehensively address involution competition" all underscore precision and effectiveness, directly responding to the people's aspirations for a better life. These measures reflect the flexibility of macroeconomic policies, showcase China's unique economic governance wisdom, and embody a "people-centered" emotional warmth.

According to the deployment of the conference, next year, fiscal spending will continue to increase, which will both stimulate private investment and strengthen support for enterprises. At the same time, efforts will be made to further expand high-level opening-up and promote the development of a green economy. This combination of policies reflects the central government's determination and resolve in responding to a complex and changing situation, and it signifies China's strong commitment and capability to stabilize expectations and counter external uncertainties. For the world, this sends a strong signal that China will continue to focus on steadily advancing high-quality development, expanding opening-up, and pursuing a path of peaceful development, providing robust stability for peace and development, and sharing the dividends of growth with its partners.

At the same time, people have noticed that "proactive" is one of the main themes that runs throughout the entire conference. 

Whether in assessing the economic situation or in the policy direction for next year, China has demonstrated a spirit of seeking truth from facts and striving for progress. This is also reflected in the essence and spirit of the Chinese economy as conveyed through the Central Economic Work Conference. The ship of the Chinese economy, despite facing storms and challenges, continues to forge ahead, relying on scientific decision-making and strong policy implementation, as well as the collective efforts and hard work of the entire nation.

Currently, the global economy still faces challenges such as sluggish recovery and geopolitical conflicts. The Chinese economy not only needs to maintain its own stable development but also must continue to inject certainty and momentum into the world economy. Through the nine key tasks proposed at the Central Economic Work Conference for 2025, as well as the five relationships that must be coordinated, it is not difficult to see the inherent "stability" and "progress" of the Chinese economy. In response to complex situations, China maintains policy consistency, while balancing short-term adjustments with long-term development goals, striving to achieve a dynamic equilibrium between economic recovery and structural optimization. This approach is not only necessary for stabilizing the current economic fundamentals but also serves as an important measure to lay a solid foundation for the conclusion of the 14th Five-Year Plan.

Only by understanding the vast amount of information released from the Central Economic Work Conference can one grasp the logic of China's development. This understanding is essential to comprehend why China's high-quality development is inevitably linked to further reform and opening-up, and greater engagement with the world, as well as why it is connected to the sincere aspirations of the Chinese people for peaceful development and win-win cooperation. It also allows for a better grasp of the tremendous opportunities brought about by China's development. A profound understanding of these aspects not only signifies a broader space for development but also means seizing opportunities in the tide of history.