China’s leaders gather to set economic targets for 2020

China’s annual economic policy-setting meeting begins Tuesday and will wrap up on Thursday, according to people briefed on the plans, right as negotiators aim to finalize a phase-one trade deal with the US

China’s annual economic policy-setting meeting begins Tuesday and will wrap up on Thursday, according to people briefed on the plans, right as negotiators aim to finalize a phase-one trade deal with the US.

The annual gathering, known as the Central Economic Work Conference, lays down priorities for economic policy for the coming year and sets targets for gross domestic product growth, the fiscal deficit and inflation. The details aren’t released until legislative meetings in March.

Chinese officials face a tough combination of slowing growth and rising inflation driven by soaring pork prices, and trade frictions with the U.S. that could be about to worsen if U.S. President Donald Trump goes ahead with a threatened tariff escalation on Dec. 15.

Policy makers have sought to strike a balance between propping up the economy while avoiding an all-out stimulus binge that would worsen debt risks. The State Council’s Information Office didn’t immediately respond to inquiries about the meeting.

State media typically issue a brief report on the outcome of the meeting after its conclusion.

Top leaders on Friday vowed to avoid systemic financial risks next year and warned that "challenges at home and abroad have risen significantly.” The gathering of the 25-member Politburo, chaired by President Xi Jinping, pledged to keep growth in a "reasonable range” and called for turning external pressure into a driving force for deepening reforms and opening up.

China’s economy grew 6% in the third quarter, the slowest rate in decades. The nation’s consumer inflation accelerated to a seven-year high in November while producer prices extended their run of declines. Exports unexpectedly declined in November amid still-weak global demand, though an uptick in imports may be further evidence of a stabilization in the domestic economy. 

Source: Bloomberg 

Posted on : 11 December 2019
//
Last Updated : Thursday 21st May 2020