BEIJING – Communist Party of China, CPC Leadership sets out priorities for H2 2024, the second half of the year.
In Beijing, the Communist Party of China (CPC) leadership convened on Tuesday to assess the current economic climate and establish priorities for the latter half of the year.
The significant meeting follows the third plenary session of the 20th CPC Central Committee held in mid-July. This dual-purpose meeting aims to implement comprehensive reform measures from the plenary session while setting a clear economic development path for the second half of 2024 amid increasing pressures, as noted by observers.
Xi Jinping, General Secretary of the CPC Central Committee, led the committee’s Political Bureau meeting.
Scholars, both Chinese and international, described the remarks from the meeting as “positive and encouraging,” reflecting the CPC leadership’s strong commitment to high-quality development and robust macroeconomic policies to navigate potential economic challenges.
The CPC Central Committee held a symposium with non-CPC individuals to gather feedback on the current economic situation and plans for the second half of the year, as reported by Xinhua News Agency. Xi Jinping presided over the symposium and delivered an important speech on Friday.
The recent policy discussions have boosted confidence in the growth prospects of the world’s second-largest economy. Some foreign economists believe these measures will sustain China’s economic success and provide continuity and stability in an increasingly complex and volatile global landscape.
Scholars pointed out that China’s economic strategies might inspire other Global South countries to pursue independent development paths, potentially enabling these countries to advance more quickly.
The meeting emphasized the importance of reform, development, and stability in the second half of the year. It stressed the need to fully implement the spirit of the 20th National Congress of the CPC and the second and third plenums.
Acknowledging the economy’s challenges, including adverse external impacts and insufficient domestic demand, the meeting recognized ongoing risks and potential dangers in major sectors. However, it stated that these are typical issues in the process of development and transformation, calling for increased risk awareness and preparedness for worst-case scenarios while maintaining confidence in the country’s development.
The 20th Central Committee of the CPC, at its third plenary session, adopted a resolution to further deepen comprehensive reforms to advance Chinese modernization. This resolution includes over 300 significant reform measures across various systems, mechanisms, and institutions.
Traditionally held at midyear, this key meeting allows the CPC leadership to update its economic assessments and fine-tune development plans to ensure the objectives of the annual Government Work Report are met on time.
Analysts highlighted the importance of these tone-setting meetings, which outline both short-term and long-term policy frameworks. These meetings play a crucial role in stabilizing social expectations and boosting confidence in China’s growth prospects both domestically and internationally.
China’s GDP grew by 5 percent year-on-year in the first half of 2024, meeting the annual growth target of approximately 5 percent.
Investors closely watched the meeting for policy insights for the second half of 2024. The meeting’s statements conveyed a “positive signal” that China has ample policy tools to sustain its recovery and achieve the annual GDP target.
The meeting underscored that macroeconomic policies should remain strong and be implemented more effectively. It emphasized the need for counter-cyclical adjustments, proactive fiscal policies, prudent monetary policies, effective implementation of existing measures, and the preparation of new policy measures as necessary.
Major Chinese banks have already reduced deposit interest rates since last week, the first such reduction this year, expected to increase market liquidity.
In May, China began issuing the first batch of 1 trillion yuan ($140 billion) in ultra-long-term treasury bonds. Six batches were completed in the first half, and analysts suggest accelerating these issuances in the second half to further support economic recovery.
A significant focus of the meeting was on enhancing domestic demand, noting the uneven recovery on the demand side and the still-low consumer spending willingness.
As the CPC Leadership sets out priorities for H2 2024, it was stressed that China should expand domestic demand by boosting consumption. Economic policies should prioritize benefiting people’s livelihoods and promoting consumption to achieve this goal.
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