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China’s top leaders have pledged to deepen supply-side reform and trigger a rebound in domestic demand, staying on course for now to support the economic recovery.
The state will continue to maintain consistent macroeconomic policies to stimulate the recovery of manufacturing and private investment, the state-run Xinhua News Agency reported, citing a Communist Party Politburo meeting. chaired by President Xi Jinping. The meeting also called for strengthening and improving regulatory oversight of the so-called platform economy and avoiding inflation in house prices.
“The current economic recovery is unbalanced and unstable,” according to the meeting report, which indicates that the government will strive to achieve more balanced economic growth. “It is necessary to take advantage of the current window of opportunity, when the pressure on stable growth is relatively weak, to promote economic stability and improvement.”
Prudent monetary policy will maintain sufficient and appropriate liquidity, Xinhua said.
The 25-member Politburo, the Communist Party’s main ruling body, met in Beijing on Friday to review the economy’s performance and make plans for the months ahead. Policymakers are trying to provide sufficient fiscal and monetary support to keep pace with the recovery while avoiding any debt eruptions.
The second largest economy in the world rose 18.3% in the first quarter from the low base last year, when China became the first nation in the world to lock in to reduce coronavirus cases. Yet beyond the record high, infrastructure investment has slowed and manufacturers are challenged by a strong yuan and rising commodity prices. If consumer spending has picked up, its recovery will depend on the outlook for wages and jobs.
The leaders also pledged to promote peak carbon and carbon neutrality in an orderly manner while actively developing new sources of energy, the statement said. Xi has previously said China will achieve carbon neutrality by 2060.
– With the help of John Liu, Yinan Zhao and Chunying Zhang
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