The implementation of more proactive and effective macroeconomic policies next year will play a crucial role in boosting China's economic growth and accomplishing its main goals and tasks 2025, an official from the Office of the Central Committee for Financial and Economic Affairs said on Saturday in Beijing.
Speaking at the Annual Conference on China's Economy 2024-2025, organized by the China Center for International Economic Exchanges(CCIEE), Han Wenxiu, executive deputy director of the committee, said the more proactive policies involve both a more proactive fiscal policy and a moderately loose monetary policy, which have changed significantly compared with the previous years.
"This will help strengthen counter-cyclical adjustments, better address instability and uncertainty in economic operations, and provide strong policy support for achieving the annual goals and tasks. The new policy wordings carry significant values and specific plans will be unveiled at the 'two sessions'," said Han.
The "two sessions" refer to the annual sessions of the National People's Congress (NPC), China's top legislature, and the Chinese People's Political Consultative Conference (CPPCC) National Committee, China's top political advisory body, slated for March every year.
Han also said that in 2025, the fiscal deficit ratio will be increased, the scale of the deficit will be expanded, and the issuance of ultra-long special treasury bonds and local government bonds will be increased, which will enhance the intensity of fiscal spending to ensure a positive impact on economic growth.
"A moderately loose monetary policy should be implemented to further leverage the dual functions of monetary policy tools in terms of both total volume and structure. Timely adjustments to reserve requirements and interest rates should be made, and tools such as open market operations should be effectively utilized to maintain ample liquidity. Continuous efforts should be made to support the real economy, while also exploring and expanding the central bank's macro-prudential and financial stability functions, innovating financial tools, and maintaining stability in the financial markets," said Han.
Implementing more proactive, effective macro policies to help China accomplish main goals, tasks in 2025: official
A Japanese professor criticized the snap general election triggered by Prime Minister Sanae Takaichi's dissolution of the lower house as unreasonable, which just leaves a campaign period of 16 days for a general election of the House of Representatives when Takaichi announced the decision on Jan 23.
The decision is aimed to capitalize on her cabinet's current high approval ratings, according to Japanese media, and the voting in the general election began on Sunday morning, with over 1,200 candidates competing for 465 seats in the House of Representatives.
Speaking in an interview with the China Global Television Network (CGTN) on Sunday, Mikitaka Masuyama, professor at Tokyo's National Graduate Institute for Policy Studies, revealed the motivations behind calling this snap election.
"From my point of view, it is just how selfish attempts to consolidate the parliamentary base for Takaichi. There is no reason to have the snap election this time around, so we have to have the delays in the execution of the budget and in the heavy snow regions, having election is very costly and makes it a lot difficult for even ordinary people to go to the voting booth. So, it is cannot be justified to have an election this time around," said Masuyama.
The primary focus of the election is whether the ruling coalition of the Liberal Democratic Party (LDP) and the Japan Innovation Party (JIP) will secure a majority and allow the Takaichi administration to continue.
Speaking at a street rally on Jan 27, Takaichi said she wishes to "win the public trust," while reiterating her pledge to resign if the ruling camp fails to win a majority.
Analysts said Takaichi's decision to dissolve the lower house and call an early election while staking her position as prime minister reflects mounting internal pressures on her administration.
The recent personal scandals, economic and diplomatic policy risks, and her controversial remarks on foreign policy have made it difficult for the prime minister to fully implement her own agenda, pushing her to take a bold gamble.
"If Takaichi would win this election by landslide, she would assume the election gave her mandate. So, she probably becomes more confident in her stance on the security policy," said Masuyama.
"But I do understand that the international security environment is rapidly changing. I think we have to enhance defense capability. That does not necessarily mean that Japan to adopt a posture that could heighten the tensions with neighboring countries. I would rather see political groups gain power that enable Japan to play a more proactive role in international cooperation," he added.
Japanese expert: snap election unreasonable
