On 11 and 12 December 2024 the Central Economic Work Conference (CEWC) was held in Beijing. Led by Xi Jinping, General Secretary of the Communist Party and President of China, the conference reviewed the economic progress made in 2023 and outlined clear goals and policies for 2024.
2023: A Year of Recovery
The CEWC highlighted 2023 as a year of recovery following the pandemic’s disruptions. Despite both domestic and global challenges, China achieved notable economic resilience through strong domestic demand, technological advancements, and structural reforms.
Key developments included breakthroughs in science and technology, improvements in social welfare, and structural reforms to lay the foundation for sustainable growth. While these accomplishments set the stage for future growth, the conference acknowledged challenges such as insufficient demand, industry overcapacity, and hidden risks in key sectors.
Guiding Principles for 2024
The CEWC outlined five key principles to guide China’s economic agenda in 2024:
- Focusing on high-quality, sustainable growth.
- Advancing reforms and opening up the economy.
- Strengthening domestic demand.
- Balancing economic development with national security; and
- Pursuing Chinese-style modernization to improve living standards.
Key Economic Policies for 2024
To realize these principles, the CEWC identified several strategic priorities:
- Strengthened Macroeconomic Policies: The conference emphasized the importance of a proactive fiscal policy to support critical sectors, such as manufacturing and innovation, through targeted tax reductions and increased local government bond issuance. Monetary policy will remain flexible to ensure liquidity and lower financing costs, particularly for green transformation and small businesses. A coordinated approach across fiscal, monetary, and industrial policies will amplify their impact.
- Driving Technological Innovation: A key focus will be on fostering breakthroughs in disruptive technologies like AI and quantum computing, as well as emerging industries such as biomanufacturing and green technologies. The role of enterprises will be strengthened through venture capital and equity investments to drive innovation.
- Expanding Domestic Demand: Boosting consumption, particularly in digital, green, and health-related sectors, will be central to economic growth. Measures will also encourage private investment in infrastructure and technology and promote large-scale consumer goods renewal programs.
- Deepening Reforms: The CEWC emphasized the need for reforms to improve efficiency and inclusivity in the economy. This includes enhancing the competitiveness of state-owned enterprises (SOEs), supporting private enterprises with better market access and legal protections, and building a unified national market to improve resource allocation and reduce logistics costs.
- Advancing Global Integration: China will continue to integrate into the global economy by expanding exports in digital trade and services, creating a business-friendly environment to attract foreign investment, and streamlining processes for international trade and business visits.
- Managing Sectoral Risks: Efforts will focus on addressing risks in real estate, local government debt, and smaller financial institutions. Affordable housing projects and balanced real estate development, along with risk resolution efforts led by high-performing provinces, will be key strategies.
- Rural Revitalization: Enhancing agricultural productivity and strengthening urban-rural integration will be priorities. This will include improving infrastructure and developing industrial projects to boost rural economies.
- Green and Low-Carbon Development: China will intensify efforts toward carbon neutrality by promoting green technologies and renewable energy projects, along with fostering a circular economy to increase resource efficiency.
- Social Welfare and Livelihoods: Economic growth will align with improvements in social welfare. Prioritizing employment stability, particularly for vulnerable groups, expanding social safety nets, and refining public assistance programs will be key to fostering long-term stability.
Strategic Implementation
To ensure the success of these policies, the government will focus on strengthening coordination between central and local authorities, holding policymakers accountable for results, and engaging the public with transparent communication.
Innovation will be encouraged to address emerging challenges, while maintaining a focus on practical solutions.
Conclusion
The Central Economic Work Conference reinforces China’s commitment to achieving a balanced and sustainable economic recovery. By prioritizing high-quality development, innovation, domestic demand, and reforms, China aims to navigate global uncertainties and secure long-term growth. With clear policies and strategic execution, China is poised to strengthen its position as a global economic powerhouse while improving the livelihoods of its people and contributing to global stability.