Senior Chinese officials on Friday elaborated on the country’s policy mix for this year, aimed at ensuring resilient economic growth, fostering innovation-driven new engines, and promoting balanced trade to share more market opportunities with the rest of the world.
China has set a target of 4.5 to 5 percent for gross domestic product growth this year, while pledging to strive for better results in practice, according to a government work report submitted Thursday to the country’s top legislature for deliberation.
Speaking at a press conference on the sidelines of the fourth session of the 14th National People’s Congress, Zheng Shanjie, head of the National Development and Reform Commission, noted that the country has the confidence to cope with risks and market volatility and achieve its development goals.
“More proactive and effective” macro policies will be implemented, he said, emphasizing a policy package that combines fiscal, monetary, investment, employment and consumption measures.
Stressing a strong fiscal support, Finance Minister Lan Fo’an told the press conference that China’s fiscal expenditure, new government bond issuance and central transfers to local authorities will all reach record highs this year.
Total investment in infrastructure, public services and other key areas, including power grids, computing power, education and health care, is expected to exceed 7 trillion yuan (about 1 trillion U.S. dollars) in 2026.
Expanding domestic demand remains a top priority this year, with particular focus on building a robust domestic market.
A total of 250 billion yuan in ultra-long special treasury bonds will be earmarked for consumer goods trade-in programs, with another 100 billion yuan for introducing a package of coordinated fiscal and financial policies to support private investment and consumer spending.
Meanwhile, Pan Gongsheng, governor of the People’s Bank of China, said the central bank will flexibly and effectively employ a range of policy instruments, including cuts to required reserve ratios and interest rates, to create a sound monetary environment for development.
Pan also said the country will respond firmly to external shocks amid a complex global environment, noting that authorities will closely monitor external shocks — from geopolitical tensions to financial market swings — and stand ready to contain any potential spillovers.
BALANCED TRADE
China will promote balanced trade growth this year, stabilizing exports while sharing more opportunities in its domestic market, Minister of Commerce Wang Wentao told the press conference.
The country is already the world’s second-largest import market, and its growing middle-income group means demand still has considerable room to expand.
At a time when some countries treat markets as a bargaining chip, China is proactively opening its vast market and turning it into opportunities for cooperation, Wang said, pledging more imports of agricultural products, premium consumer goods, advanced equipment and key components.
China is currently the major trading partner for more than 160 countries and regions. Pan said China has no need or intention to seek competitive edges in foreign trade through the depreciation of its currency, adding that the yuan has strengthened against the U.S. dollar so far this year.
Senior officials at the press conference also highlighted measures to promote high-standard opening up this year.
China will expand access to its services market, including pilot programs in the telecom and biotechnology sectors, as well as in wholly foreign-owned hospitals, Wang said.
Meanwhile, Wu Qing, chairman of the China Securities Regulatory Commission, said authorities will work to create a more transparent, stable and predictable market environment to better meet global investors’ demand for Chinese assets.
NEW ENGINES OF GROWTH
Alongside demand-side support, China will step up efforts to shore up new industries and develop new quality productive forces this year.
Nearly 1.3 trillion yuan of fiscal funds will be allocated this year to support science and technology development, an increase of 7.1 percent from the previous year, Lan said.
Zheng said China will intensify its moves to modernize the industrial system, promoting deeper integration of technological and industrial innovation, and of advanced manufacturing and modern services, in an effort to accelerate upgrading old economic engines and fostering new drivers.
Artificial intelligence (AI) is expected to play a pivotal role as AI technology is rapidly spreading across various industries in China.
The government will continue to advance its “AI Plus” initiative, Zheng said, forecasting that AI-related industries will be valued at more than 10 trillion yuan by the end of the 15th Five-Year Plan period (2026-2030).
China will also move to boost six emerging pillar industries this year, including integrated circuits, the low-altitude economy and intelligent robots.
These sectors, approaching 6 trillion yuan in total value last year, are expected to surpass 10 trillion yuan in 2030, Zheng said.
High-tech manufacturing contributed 26 percent of China’s industrial growth last year, and more high-growth sectors are expected to emerge in the coming years, Zheng said, adding that several trillion-yuan-level markets are poised to take shape in the future to create new engines for high-quality development. ■ (Xinhua)
