China trade economy File photo: VCG

China's "economic development opportunities outweigh challenges", and there are multiple favorable conditions that underpin the country's economic growth, Han Wenxiu, executive deputy director of the office of the Central Committee for Financial and Economic Affairs, said on Wednesday. 

"China has sufficient macro policy space, relatively low price level and the central government's debt level is not high. There is still enough room for fiscal and monetary policy maneuvering," Han said. 

He noted that the effects of a number of supportive policies will continue to be released throughout next year, including an additional issuance of 1-trillion-yuan worth of government bonds, launching more measures to help resolve local debt risks, and further cut of the banks' deposit reserve ratio. 

According to Han, China is a massive market, which is home to over 1.4 billion population and more than 400 million middle-income groups. Also, China's urban population has exceeds the total population of Europe, underscoring the huge potential of China's consumption and investment. 

Han also took note of the emerging economic drives from the deepening of reform and opening-up, technological impetus from artificial intelligence, aerospace and quantum technology and bio-manufacturing, as well as green development. "There are many new technology innovations this year. Also, China's automobile exports will exceed 5 million units in 2023, setting a new record," Han said. 

The comments were made at the 2023-2024 China Economic Annual Meeting held by the China Center for International Economic Exchanges on Wednesday. 

The tone-setting Central Economic Work Conference was held in Beijing from Monday to Tuesday, during which top Chinese policymakers had outlined a number of measures to tackle challenges facing the Chinese economy, further promote and consolidate economic recovery and ensure effective improvement in quality and reasonable growth in quantity in 2024.

Regarding the economic work next year, the meeting called for efforts to pursue progress while ensuring stability, consolidate stability through progress, and "establish the new before abolishing the old."

Han explained that "pursuing progress while ensuring stability" means adopting more policies that are conducive to stabilizing expectations, stabilizing growth and stabilizing employment, and prudently introduce prohibitive measures. "Consolidate stability through progress" means that making proactive progress on the basis of "transforming methods, adjusting structure, improving quality and increasing quality." 

In terms of "establish the new before abolishing the old," it equates to coordinating stability with progress. "It does not mean that we should deviate from the reality in a rush for quick results," Han said.  

China is about to release key economic figures for November on Friday. In the first three quarters, China's GDP grew by 5.2 percent year-on-year.

According to Han, it is expected that the country could successfully achieve its major social economic development goals this year. "Many institutions predict that the annual GDP will be around 5.2 percent. And China's economic growth will display a pattern of low in the beginning, high in the middle, and stable in the end throughout the whole year."

He stressed that the contribution of China to the global economic growth will be over 30 percent, or one third. The country will remain as the biggest driver of the world economy, and its export will likely account for 14 percent of the global total. 

Global Times