The Central Economic Work Conference (CEWC) met on 11-12 December, 2023 and serves as a resolute rebuttal against prevailing Western narratives that suggest a slowdown in Chinese economic growth or imply a recession. The release of a comprehensive 4355-character blueprint during the conference signifies a sophisticated and multifaceted strategy aimed at ensuring a robust recovery across diverse sectors in 2024.
In his keynote address at the CEWC, President Xi Jinping not only lauded China’s economic accomplishments in 2023 but also conducted a meticulous analysis of the prevailing economic landscape, providing insights that underpin the government’s agenda for 2024. Premier Li Qiang, in his concluding speech, reiterated these priorities, underscoring that economic growth remains the foremost imperative. The CEWC emerges as a crucial platform, dispelling Western misconceptions and offering a transparent and comprehensive view of China’s economic trajectory.
Contrary to unfounded rumors, China’s economy exhibited signs of recovery in 2023, particularly following the government’s decision to lift all remaining covid-19 restrictions and open up its borders. This move has led to significant revitalization across sectors that experienced stagnation during the pandemic. Recent developments have also seen the International Monetary Fund (IMF) revising its growth forecast for China, projecting a robust 5.4 percent growth for the year, citing better-than-expected third-quarter growth and positive policy developments from Beijing.
The State Council’s proactive measures in August, aimed at boosting foreign direct investment in China, and the issuance of RMB 1 trillion in sovereign bonds in October, demonstrate the nation’s commitment to stimulating economic recovery and fostering growth. These actions refute claims of a recession and underscore China’s dedication to maintaining economic stability.
The CEWC’s outlined priorities for 2024 focus on scientific and technological innovation to advance a modern industrial system, countering assertions of economic slowdown. Key areas of focus include boosting domestic demand, deepening fiscal and tax reforms, high-level opening in industries such as healthcare and services, and ensuring stability in the financial sector, particularly in the property market.
China recognizes the crucial role of technology in economic growth and is committed to policies supporting the research and manufacturing of technology services and products. This approach includes promoting new-type industrialization, fostering the growth of the digital economy, and expediting the development of artificial intelligence (AI), Biotechnology, Drones, Green Technology and Quantum Computing.
Contrary to Western propaganda suggesting that China is indifferent to climate change concerns and carbon emissions, recent developments firmly refute such claims. The CEWC highlighted China’s resolute commitment to environmental sustainability, placing a strong emphasis on green and low-carbon growth as integral to its economic agenda. China is actively engaged in an ambitious agenda to increase its renewable energy capacity over the next decade, aligning with its commitment to peak carbon emissions by 2030 and achieve carbon neutrality by 2060. This positive trend follows a significant increase in investments in clean energy, showcasing China’s proactive approach to addressing climate concerns and debunking unfounded Western narratives regarding its environmental commitments.
Many western analysts also hyped up deflation issue making it overblown just to make their weak analysis impressive. They claimed that deflation is bad for the economy because consumers and companies may put off purchases or investments in anticipation of prices falling further.Â
Many West-influenced analysts tried to downplay the CEWC on the basis of fabricated domestic consumption trends, believing that China’s own consumption momentum is declining and it will upset 2024 targets.
As a matter of fact, these analysts showed intellectual dishonesty. The real picture is that consumption is playing an increasingly important role in driving growth in China, with consumer spending contributing 83.2 percent to economic growth in the first three quarters, data from the National Bureau of Statistics (NBS) showed.
Meanwhile, the country’s express delivery sector has handled a record of 120 billion parcels so far this year, suggesting continuously recovering consumer demand. According to neutral analysis, the tech-intensive green trio of solar batteries, lithium-ion batteries and electric vehicles have replaced apparel, home appliances and furniture to become the top drivers of China’s foreign trade. The total export value of these products jumped 41.7 percent year on year in the first three quarters of this year.
Similarly, the claim of a consumption slowdown has also been busted as China’s policy for 2024 places a significant emphasis on boosting consumption, expanding investment, and creating a virtuous cycle of mutual support.
The CEWC also emphasized the efforts to stimulate consumption in areas such as digital, green, and health-related consumption, showcasing the government’s dedication to adapting and evolving consumption habits. China also plans to actively boost trade and attract foreign investment in 2024, dispelling notions of a downturn.
Practical measures will be implemented to cultivate new drivers for foreign trade and expand trade in areas like intermediate products, service trade, digital trade, and cross-border e-commerce exports. The country is actively removing obstacles for foreign individuals, promoting a market-oriented, law-based, and internationalized business environment.
The 2023 CEWC stands as a resolute response to dispel misinformed narratives about China’s economic trajectory. The detailed agenda unveiled during the conference not only refutes claims of a recession but paints a vibrant picture of China’s commitment to robust growth, technological innovation, and sustainable development in 2024. In essence, the CEWC’s China is a proactive and forward-looking nation, steering confidently towards a prosperous future.
The CEWC is not oblivious of impending challenges that may impair the 2024 goals. Being cognizant of the situation it stressed continuing to build a market-oriented, legal and international business environment. It emphasized the need to effectively address the obstacles for foreigners to come to China for business, study, and tourism, and do a good job in implementing the eight steps to support high-quality Belt and Road cooperation.
Regarding the real estate sector, China will intensify construction of a new model of development, and coordinate the resolution of local debt risks and stable development.
Efforts must be made to actively and steadily resolve real estate risks, and meet the reasonable financing needs of different real estate enterprises, aiming to promote the stable and healthy development of the real estate market, said the meeting.
Many western analysts also hyped up deflation issue making it overblown just to make their weak analysis impressive.
They claimed that deflation is bad for the economy because consumers and companies may put off purchases or investments in anticipation of prices falling further. However, contrary to these claims, China’s average consumer price index (CPI) increased 0.3 percent annually in the first 11 months of the year. Core CPI, which excludes more volatile food and energy prices, was up 0.7 percent in the same period.
