China’s economy braves the wind and the waves and sails steadily into the future

TEHRAN- The Central Economic Work Conference was held in Beijing recently. In the critical year of achieving the objectives and tasks laid down in the 14th Five-Year Plan (2021-2025), after the successful convening of the Third Plenary Session of the 20th CPC Central Committee, how this important conference will plan for China’s economy has attracted worldwide attention.

I would like to share a few ideas with Iranian friends from all walks of life in this regard:

The Conference analyzed the current economic situation. In the face of a complicated and challenging environment of increasing external pressure and growing internal difficulties, the Chinese government has united and led the Chinese people of all ethnic groups to respond calmly and implement comprehensive measures. Notably, the decisive deployment of a package of incremental policies at the meeting held by the Political Bureau of the CPC Central Committee on Sept. 26 has effectively boosted social confidence and led to a remarkable economic recovery. In November, China’s economy has sustained the recovery momentum since September. Imports and exports of goods maintained growth and trade structure continued to optimize. In the first eleven months, the total value of imports and exports of goods was 39,786.1 billion yuan, up by 4.9 percent year on year. Equipment manufacturing and high-tech manufacturing grew fast, with the value added increased by 7.6 percent and 7.8 percent year on year respectively, both are more than 2 percentage points faster than that of the industrial enterprises above the designated size. Modern services developed well. the Index of Services Production of information transmission, software and information technology services, leasing and business services and financial intermediation grew by 9.3 percent, 9.3 percent and 8.8 percent year on year respectively, 3.2 percentage points, 3.2 percentage points and 2.7 percentage points faster than the Index of Services Production. As things stand, China’s economic growth is expected to be around 5%, and major annual goals and tasks of economic and social development to be successfully accomplished.

The Conference released a strong signal to promote the continued improvement of China’s economy. The meeting arranged the economic work for 2025, emphasizing that more active and effective macroeconomic policies should be implemented next year. The country will adopt a more proactive fiscal policy, set a higher deficit-to-GDP ratio, increase the issuance of ultra-long special treasury bonds, and increase the issuance of local government special-purpose bonds. The tone of monetary policy was adjusted from “prudent” to “moderately loose”, which is the first time in 14 years. The conference also outlined 9 key tasks, including expand high-standard opening up, give full play to the driving role of economic system reform, drive the development of new quality productive forces through scientific and technological innovation, and pursue coordinated progress in new urbanization and all-around rural revitalization. Although the adverse impacts brought about by changes in the external environment have deepened, and the country’s economy still faces many difficulties and challenges, the Chinese government will face up to the difficulties, strengthen confidence, increase counter-cyclical adjustments, further enrich and improve the policy toolbox, and provide strong policy support for promoting the continued improvement of the economy.

The Conference made it clear that China will expand high-standard opening up. At present, the headwinds of economic globalization intensified, geopolitical risks continued to rise, and global governance challenges increased. Under such circumstances, China insists on expanding its independent and unilateral opening up in an orderly manner, consolidating and expanding global trade and investment partnerships, and sharing development opportunities with the world. China will steadily expand systematic opening up, proactively docking the Comprehensive and Progressive Trans-Pacific Partnership Agreement, the Digital Economy Partnership Agreement and other international high-standard economic and trade rules, accelerating the expansion of the network of globally oriented high-standard free trade zones, and promoting the negotiation and signing of a variety of multi-bilateral economic and trade agreements. China will enhance the resilience of foreign trade, promote cross-border e-commerce, push forward the layout and construction of overseas warehouses, actively develop services trade, green trade and digital trade, push forward the innovative development of border trade. China will increase the efforts to attract and stabilize investment, expand the pilot programs of expanding opening-up in the fields of telecommunication and medical, steadily expand opening-up of Internet, education, culture and other services, and further optimize the visa-free entry policy to attract and facilitate cross-border exchanges of business personnel.

With world’s most promising mega market, a complete industrial system, a high level opening-up and the increasing effectiveness of innovation and development, China has a strong attraction to the world. At the 7th China International Import Expo (CIIE) held in November this year, Iran participated in the event with nearly 30 exhibitors and an exhibition area of 1,440 square meters, which is among top of all participating Asian countries. In 2025, China’s economy braves the wind and the waves and sails steadily into the future, which will provide more development opportunities for all countries in the world, including Iran.