China will improve its economic strategies by implementing steady economic policies in 2013. It intends to strengthen the long-term growth leaving the global risk apart, according to the official Xinhua said on Sunday after an annual policy setting conference.
Chinese leaders are working hard to ensure a stable economic growth. In the current fiscal year 2012, they achieved e growth target of 7.5 % and will stick to the same for the coming year.
According to the experts new communist party chief Xi Jinping should take corrective steps in the reformation of the economic strategies to make the country bold enough to face the corporate and economic challenges by growing emphasizing on consumption over investment and export and by loosening the dominance of state companies.
First of all it needs to develop in the field of finance by ensuring corporate growth in bank loans and social finance. It‘s also working hard towards the stability of the Yuen currency to cushion the economy against global headwinds. According to Xinhua China will follow and prudent monetary policy and the proactive fiscal policy in 2013.
The proactive fiscal policy is related to tax reforms and structural tax collection whereas prudent monetary policy will facilitate dynamism and operational flexibility.
In this raising inflationary phenomenon, china faced global uncertainty along with trade protectionism.
Its annual economic growth has declined to 7.4% in the third quarter, the weakest growth since 2009, But from October, its growth is picking up again.
The central bank, the people’s Bank of China, practices the same monetary policy of first modest tightening and then loosening, since late 2010, following the global financial crisis.
Since late 2008 fiscal policy has been proactive and expansionary when the authority sanctioned a 4 trillion Yuan stimulus package to revive the economic health in hitting the global financial crisis. According to Xinhua, the country will step forward in achieving economic reforms with greater potential courage and wisdom.
The government will maintain property control by putting a restriction on the number of homes an individual can buy. It also engaged in cutting off the potential risk and will put efforts to improve the quality of urbanization to support domestic demand.
The country will maintain stability in export and import trading in order to maintain a proper currency value as well as to balance the county’s international payments.
The plans and strategies are discussed in a two days meeting in Beijing which brought together the people like provincial officials, the top leaders, regulators and ministers and the chief of central bank along with the heads of the top firms and banks.
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