| China's leaders set the tone for 2013 | ||
| By Lan Xinzhen | ||
What kind of economic policies
will China adopt in 2013? Will any significant economic reforms be realized?
These are among the questions on the minds of China-watchers following the
country's once-in-a-decade leadership transition. The Central Economic Work
Conference (CEWC) held in Beijing on December 15-16 provided the answers: China
will further expand reform and opening up and continue its macroeconomic
policies, but in a prudent manner described as "active and steady."
The CEWC is held at the end of
each year to discuss issues in the domestic and international economies and map
out plans for the following year. The meeting this year attracted more attention
than usual because of the presence of the country's new top leaders and a
rebound in economic growth.
The CEWC concluded that the
global economic situation would continue to be turbulent. The global economy is
expected to maintain low growth, various forms of protectionism will resume and
the pressure of potential inflation and asset bubbles will expand. The global
economy has entered a period of profound transition from a period of fast growth
in the pre-crisis years.
Expanding domestic demand,
improving innovation and continuing the transformation of the country's economic
growth pattern will present new opportunities for China's economy.
Zhang Liqun, a macroeconomic
researcher at the State Council's Development Research Center, said the new
leaders are very confident about economic development in 2013 and believe the
Chinese economy is likely to maintain steady growth.
Breakthroughs for
reform
"Reform" was the main buzz word
at this year's CEWC. Xi Jinping, General Secretary of the Central Committee of
the Communist Party of China (CPC), said at the conference that China should
maintain a market economy and said that further reform needs "greater political
courage and wisdom."
Vice Premier Li Keqiang said
that reforms are a major plus for China. Reforms, he said, would not only bring
in fresh ideas but would ensure that vested interests would not dominate the
economy.
"This shows the resolution of
the Central Committee of the Party," said Lian Ping, chief economist of Bank of
Communications. "The terms used throughout the conference, such as 'overall
scheme,' 'roadmap' and 'timetable' for the reform, are inspiring and indicate
that future reforms will not be confined to small matters, but are focused on
major issues."
The Chinese economy is facing
immense difficulties in pursuing its economic reforms and readjusting its growth
structure, Lian said. Reforms can only be implemented if there are changes to
the country's wealth distribution and financial system, if monopolies are broken
up and if the household registration system, or hukou, is
overhauled.
Such grand changes must come
from the top, and leaders have already signaled their openness to expand
reforms.
Upon his election as general
secretary of the CPC Central Committee, Xi paid his first inspection tour to
south China's Guangdong Province, the bellwether of China's reform and opening
up over three decades ago. From December 7-11, he visited cities of Shenzhen,
Zhuhai, Shunde and Guangzhou, where he dropped in on families, held seminars and
deliberated upon a new round of economic reform needed for today's China.
In Shenzhen, Xi also laid a
basket of flowers at the statue of Deng Xiaoping, who ushered in a new wave of
economic reforms and opening up that transformed China into an economic
powerhouse.
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