Since the second quarter of 2010,
China economy has overtaken the rank of Japan’s economy, becoming the second largest economy. And recently, the World Bank predicted that the rate of China’s contribution to the world economic growth will reach 25% this year, then China will be the first engine to the global economic growth for two consecutive years.
2011 is beginning of China“Twelfth Five-Year Planning”. As the wind-vane to judge the current economic situation and to draw up the development of macro-economic policies next year, the central economic work conference is vital for how to give the direction for the realization of the “Twelfth FiveYear Planning”. This time, the conference stipulates six tasks including the goal of macro-economic control, fiscal and monetary policies, livelihood, price reform, foreign economic and other issues of concern.
In which, some policies highlighted several “first times”. In 2010, the price hikes reflected the living of citizens. More efforts will be made to ensure market supplies, stabilize prices and regulate market order in 2011. At first, China shift its monetary policy stance from loose to prudent in 2011. The second major task for economic work next year is to ensure the effec- tive supply of agricultural products. Anti-inflationary macro-control work will become the focus of next year. Since 2005 the policy of exchange reform has carried out. It is the first time that “to further improve the RMB exchange rate formation mechanism” was emerged in the document of central economic work conference publicly. In addition, it also was the first time that this session proposed to raise f the policy of expanding the scale of import to the level of balancing the macroeconomic and adjustment of economic structure height.
This issue of livehood concerns a wide range. The central economic work conference discussed the issues including the education, employment, health insurance, and housing. At the conference, the emphasis was put on accelerating the developments of the housing guarantee system, and it was mentioned for the first time that a housing system including both affordable housing and commercial housing will be established in accordance with the national conditions. As the increasingly expanding income gap is setting barriers for Chinese social development, the central government requires strengthening the reforms on national income distribution system. This is also the first time to appear independently, not as one of the measures of improving the livehood.
Therefore, how the central economic conference shift monetary policy, improve the exchange rate mechanism, expand the scale of imports, increase housing “dual” supply and adjust the reform of income distribution and other hot spots? This issue of China’s foreign trade will give you more detail.