{"id":9243,"date":"2022-01-07T07:30:03","date_gmt":"2022-01-07T07:30:03","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=9243"},"modified":"2022-01-07T07:57:48","modified_gmt":"2022-01-07T07:57:48","slug":"chinas-economic-outlook-for-2022","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/chinas-economic-outlook-for-2022\/","title":{"rendered":"China’s economic outlook for 2022"},"content":{"rendered":"

As China\u2019s economic growth slows, stable monetary and fiscal policy remain the top priorities for 2022. Beijing is also expected to focus more on housing, pronatalist incentives and \u2018tertiary distribution\u2019 under its new Common Prosperity policy<\/h2>\n

From 8-10 December, Chinese leaders convened their annual Central Economic Work Conference (CEWC). The read-out of the conference stresses the urgent need to address \u2018three pressures\u2019: shrinking demand, supply shocks, and a weakening economic outlook.<\/p>\n

The Chinese government\u2019s answers to these issues are not really surprising. Stable macro-economic policy \u2013 i.e. prudent monetary and conservative fiscal policy \u2013 remains the paramount guiding principle for 2022. At the micro-level, supply-side reform and tax incentives are still the government\u2019s weapon of choice. Other familiar policies, such as reform and opening-up, scientific and technological development, the fight against regional inequalities and the maintenance of stable employment and social service provision are all listed among the seven major priorities.<\/p>\n

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Some new targets involve pronatalist measures to increase the population and the promotion of social housing. Other important goals, such as the prevention of financial risk and China\u2019s much-discussed peak coal and net zero<\/a> targets, are mentioned but not prioritised. Xi Jinping\u2019s new Common Prosperity<\/a> policy is described as a long-term challenge with the promotion of the so-called \u2018tertiary redistribution\u2019 as the only near-term goal.<\/p>\n

Overall, this CEWC indicates that Chinese policies in 2022 might look very much like those in 2021, as Chinese leaders grapple with the challenges of a more affluent, more educated but increasingly older population<\/a>.<\/p>\n

Background<\/h4>\n

The Chinese economy ended 2021 on a rather sombre note. After 2020\u2019s pandemic-defying 2.3% growth \u2013 the only increase of any major economy \u2013 last year witnessed several hiccups, with more storms already gathering. Although the country will probably surpass its self-set goal of 6% GDP growth, the Chinese government is facing mounting headwinds.<\/p>\n