China has pledged to bolster its economy, primarily on the back of domestic demand, and build a robust domestic market to counter external challenges, after a high-level meeting setting the tone for next year’s economic policy.
Following the central economic work conference – an annual gathering of the Central Committee of the ruling Communist Party and the State Council, China’s cabinet – a readout by state news agency Xinhua said the country must “strengthen our own capabilities to cope with external challenges”.
“We must fully tap our economic potential and must uphold both policy support and reform and innovation,” the nation’s top leadership said, according to the readout released on Thursday after the conclusion of the two-day conference, which typically lays out the broad fiscal and monetary agenda for the coming year.
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“We must ensure that the market is allowed to operate freely while being well regulated, and must closely combine investment in physical capital with investment in people.”
The conference addressed a range of domestic challenges that the world’s second-largest economy is now facing, including a sharp contradiction between strong supply and weak demand, low price levels, “involutionary” competition and local governments’ financial difficulties, as well as medium- to long-term challenges such as an ageing population amid declining birthrates.
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With China seen as largely staying on course despite rising external headwinds in 2025, next year is critical as it’ll be the first covered by China’s 15th five-year plan.