Maintaining proactive fiscal policy key to China’s 2019 economic growth




Chinese society knows the country’s economy has unlimited potential and with the advancing of China’s modernization, that potential can be realized. The fundamental role of the Chinese economy is to coordinate the relationship between economic development and other public demands to benefit everyone.

By Global Times (KATHMANDU, 22 September 2018) – The annual Central Economic Work Conference has called for the country to maintain its proactive fiscal policy in 2019 to stabilize aggregate demand. This week’s meeting called for further stabilization in employment, finance, foreign trade, foreign and domestic investment and to embrace the 70th anniversary of the founding of the People’s Republic of China through economic and social development.

Responding to concerns, both domestically and internationally, the conference highlighted China’s pro-active attitude and confidence in dealing with various economic uncertainties saying although difficulties exist, China has adequate ways of coping with them.

The conference’s position is that we should grow the economy. The key to achieving this goal is to deepen reform and opening-up. Reform and opening-up has helped China turn crises into opportunities over the past 40 years. At a time when we are facing multiple challenges, it’s expected that reform and opening-up will create new momentum.

Can the decisions made at the conference be implemented across the whole country? There will undoubtedly be some questions. Implementing decisions of the economic work conference is a test that China will face in 2019.

Whether decisions of the central government can be implemented hinge on initiatives at various sub-levels. For instance, strengthening the leadership of the Communist Party of China Central Committee (CPCCC) and inspiring officials to creatively implement its decisions are supposed to be the pathway to advancing reform and opening up and encouraging officials to work hard. However, they are sometimes used as excuses by some local governments to behave irresponsibly.

Some officials have shirked their responsibilities. As we will face a tough task to implement the decisions of the economic work conference in 2019, that attitude must be change.

In fact, GDP growth is not the only way to win social confidence. People want to see officials take their demands into consideration rather than pursue their own interests and they want to see more problem solving.

Chinese society knows the country’s economy has unlimited potential and with the advancing of China’s modernization, that potential can be realized. The fundamental role of the Chinese economy is to coordinate the relationship between economic development and other public demands to benefit everyone. People’s property should be safe, the process of wealth accumulation should be fair and national security should not be challenged. These principles have been increasingly taken into account at the political level. Although situations vary in different parts of China, people can easily tell whether officials do their best to fulfill their responsibilities.

China faces challenges, but they can be overcome with government officials playing a crucial role. Their enthusiasm to a large extent depends on how much encouragement they are offered. Therefore, strengthening incentive policies is as important as education and mobilization.


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