OPINIONS China's policy toolkit adequate for economic challenges

OPINIONS

China's policy toolkit adequate for economic challenges

Xinhua

03:43, December 13, 2018

181212-16.PNG

(Photo: wwww.ce.cn)

BEIJING, Dec. 12 (Xinhua) -- Although external uncertainties abound and downside risks have emerged, China's policy makers have many economic levers at hand to deal with challenges, analysts have said.

"The country has plenty of room to maneuver its policies, and is capable of maintaining stable economic growth in a turbulent global environment," said Yan Se, a professor at Peking University.P

The country's monetary policy remained prudent and neutral, neither too loose nor too tight, Yi said at the G30 International Banking Seminar 2018.

Looking forward, Lian Ping, chief economist of the Bank of Communications, expects the country's monetary policy to prioritize ensuring stable growth in 2019.

The central bank may further cut the RRR in 2019, but at a milder extent and lower frequency compared with this year, Lian said, adding that the likelihood of cutting the benchmark interest rates would remain low.

He expects the country's fiscal policy to be more proactive next year, with the budget deficit ratio rising to 3 percent from 2.6 percent in 2018, further reduction of taxes and fees, and more efficient use of fiscal funds.

CICC economist Liu Liu said that the country would further advance its reform and opening-up policies, by actively supporting the development of the private economy, promoting foreign trade and attracting foreign investment.

Specific measures may include improving the business environment, reducing corporate costs, preventing market monopoly, implementing competitive neutrality, further opening manufacturing and service industries to foreign investment, strengthening intellectual property protection, easing market access, and adopting the model of pre-establishment national treatment with a negative list, according to Liu.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue