Lujiazui Photo:VCG

The annual Central Economic Work Conference was held in Beijing from December 11 to 12 to analyze China's current economic situation and arrange next year's economic work. The conference outlined priorities in nine specific aspects, with the top one being "vigorously boosting consumption, improving investment efficiency, and expanding domestic market demand on all fronts," according to the Xinhua News Agency. 

This indicates that stabilizing economic growth and stimulating internal growth momentum will be the main focus of the country's economic work next year.

In the past decade, the three main drivers of economic growth - consumption, investment, and exports - have all undergone structural changes. With the international trade landscape full of uncertainties, it is essential to drive industrial innovation through technological advancements, fostering new industries, new business models, and new growth momentum, while expanding domestic market demand. 

This approach will invigorate the power of China's huge domestic market as an engine of growth. 

Currently, China has a population of 1.4 billion, and according to official statistics, the scale of the middle-income group in China is approximately 400 million people, making it the largest and most dynamic middle-income group in the world, which creates considerable space for domestic consumption.

Meanwhile, in order to expand consumption and promote consumption upgrades, as well as to drive the upgrading and transformation of the manufacturing industry, China has introduced large-scale equipment upgrades and consumer trade-ins. 

This initiative promotes the updating and technological transformation of various production and service equipment, including household appliances, new-energy vehicles, and heavy machinery, while vigorously advancing the green circular economy. Positive progress has already been made. 

To further expand the consumer market and enhance the contribution of consumption to economic value added, relevant departments can increase policy support and guidance in the future by focusing on helping residents increase their income, broadening employment channels, stabilizing the real estate and stock markets, and improving investment returns.

The specific actions to be taken are outlined across major sectors. The objectives are to promote consumption and investment through technological innovation and industrial upgrading, to expand investment demand and improve investment quality by enhancing the business environment and refining investment and financing mechanisms, to enhance the attractiveness and competitiveness of the Chinese market by coordinating internal and external resources, to expand consumption and investment demand in rural markets, especially in county-level markets, to leverage the synergistic effects of regional economies and improve resource allocation efficiency, to maintain a healthy ecosystem for small and micro enterprises, to ensure social welfare, and to uphold the foundational support for the country's economic development.

The nine key tasks demonstrate a strategic approach through coordinated policies, emphasizing areas that need strengthening to achieve high-quality economic growth.

Based on changes in both internal and external circumstances, the Central Economic Work Conference has made it clear that next year China will adhere to the principle of pursuing progress while ensuring stability, promoting stability through progress, and implementing a more proactive fiscal policy along with a moderately loose monetary policy, aiming to create a combination of pro-growth policy. 

This means moderately raising the deficit ceiling and expanding the scale of debt; appropriately increasing the supply of base currency to ensure liquidity is sufficiently ample. This initiative will provide more flexibility for businesses and encourage more active investment across various sectors. 

Meanwhile, policies aimed at stabilizing the real estate and stock markets will significantly improve social expectations. Furthermore, through reforms in the fiscal and tax systems and comprehensive reforms in capital market investment and social financing, the investment and consumption environment will be improved, thereby promoting positive interactions among investment, production, and consumption, allowing for better and more optimal allocation of all market factors, including capital, which will help enhance the overall efficiency of production and operation in Chinese society.

The author is President of Beijing Belt & Road Cooperative Community. bizopinion@globaltimes.com.cn