CHINA’S Central Economic Work Conference (CEWC), held in December 2024 has laid out a strategic blueprint poised to shape the nation’s economic trajectory in 2025. With global attention focused on China, the conference highlights an ambitious yet pragmatic approach to addressing domestic challenges while positioning the country as a critical player in global economic recovery. The CEWC’s policy priorities—fostering domestic consumption, promoting technological innovation and advancing sustainable development—underscore China’s resolve to maintain stability while pursuing high-quality growth.
This CEWC comes at a time of heightened global economic headwinds, geopolitical tensions and post-pandemic uncertainties. The conference’s agenda emphasized the principle of “progress amid stability,” reaffirming China’s focus on maintaining steady growth while pursuing structural reforms. For 2024, policymakers have estimated a 5% GDP growth, reflecting China’s ability to adapt to evolving circumstances while staying on course toward its overarching development goals.A cornerstone of the CEWC’s strategy is revitalizing domestic consumption as a driver of economic growth. In response to subdued consumer spending and lingering deflationary pressures, the government aims to implement more proactive fiscal measures. These include increased public spending, targeted subsidies for household goods, and enhanced social welfare programs to boost consumer confidence and disposable income.
To complement fiscal measures, the CEWC signaled a shift toward a “moderately loose” monetary policy aimed at supporting economic activity. Potential interest rate cuts and increased liquidity are on the table to stimulate growth. Additionally, policymakers underscored the need to fend off systemic risks, particularly in the real estate and financial sectors. China’s leadership recognizes that household consumption accounts for a significant share of economic activity. By prioritizing policies that directly address consumer concerns, such as affordable housing, healthcare, and education, the government aims to unlock the latent potential of domestic demand. Moreover, initiatives to reduce the urban-rural consumption gap through rural revitalization programs were a focal point of the conference. This comprehensive approach not only bolsters domestic consumption but also contributes to broader social stability and economic inclusivity.
The CEWC reiterated the importance of technological innovation as a cornerstone of China’s economic transformation. Recognizing the critical role of advanced technologies in driving productivity and competitiveness, policymakers emphasized self-reliance in key sectors such as artificial intelligence and renewable energy. China’s push for self-reliance in critical technologies is both a response to external pressures and a strategic move to position itself as a global leader in innovation. Investments in research and development, along with policies supporting high-tech industries, are expected to create a robust ecosystem for technological advancement. This strategy not only enhances economic resilience but also strengthens China’s role in shaping the global technology landscape.
Practical applications of these innovations were highlighted during the conference. Focus is expected to be put on integrating advanced technologies into industries such as manufacturing, logistics, and renewable energy. The Belt and Road Initiative (BRI) serves as a platform for exporting these innovations, fostering mutual benefits between China and its global partners. Sustainability remains a defining feature of China’s economic agenda. The CEWC reaffirmed the dual-carbon goals of achieving peak carbon emissions by 2030 and carbon neutrality by 2060, emphasizing the integration of green development into all aspects of economic planning.
Domestically, the government is promoting low-carbon manufacturing, expanding the electric vehicle industry, and investing in renewable energy technologies. These efforts are not only addressing pressing climate challenges but also creating new economic opportunities in emerging industries. On the international front, China’s green initiatives under the BRI reflect its commitment to global sustainability. Renewable energy projects, such as solar installations in Africa and wind energy corridors in Central Asia, demonstrate how China’s policies contribute to the UN’s Sustainable Development Goals (SDGs). By aligning domestic and international priorities, China is positioning itself as a leader in climate action and sustainable development. The road ahead may not be without challenges. However, the CEWC’s comprehensive agenda underscores China’s readiness to address these with pragmatism and vision. For global partners, this represents an opportunity to engage with a forward-looking China in building a sustainable and inclusive global economy.
—The writer is President of the Belt and Road Initiative for Sustainable Development (BRISD).
(qaisernawab098@gmail.com)
