China will maintain the continuity and stability of its macroeconomic policies as the economy improves, according to the ruling Communist Party’s Politburo.
China will expand domestic demand, actively promote urbanization, strengthen real-estate controls and support small business, the official Xinhua News Agency reported, citing a statement issued after a meeting of the party’s political bureau chaired by incoming President Xi Jinping. The government will also encourage consolidation in industries with overcapacity, according to the statement.
China will make its policies “more targeted and effective, and predetermine or fine-tune these policies at an appropriate time and in an appropriate way,” according to the statement cited by Xinhua.
The world’s second largest economy will probably maintain its annual growth target of 7.5 percent next year, according to nine of 16 analysts surveyed by Bloomberg News last month. A goal of 7.5 percent would signal that Xi and Li Keqiang, who is set to succeed Wen Jiabao as premier, are prepared to expand fiscal and monetary easing should China’s nascent economic recovery falter.
Signs are pointing to a rebound in the Chinese economy from a three-year low, with the key Purchasing Managers’ Index, rising to a seven-month high in November, according to data released on Dec. 1. A reading above 50 indicates expansion.
At the same meeting, the Politburo that the number of meetings and expenses should be reduced as part of efforts to cut waste, Xinhua reported.
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