China's central bank said it will implement a moderately loose monetary policy this year, and introduce a combination of measures in support of economic development.
According to the People's Bank of China (PBOC), this year's monetary policy aims to bolster the real economy, prevent risks, and address constraints such as the interest rate gap between China and the United States and the interest rate gap between banks. The policy must be implemented at a reasonable speed and level.
"In light of changing situation, efforts will be made to keep the total amount, structure, interest rate, exchange rate and other aspects of monetary policy at a reasonable and balanced level, following the introduction of a policy combination," said Dong Ximiao, the chief researcher of Merchants Union Consumer Finance.
Industry insiders said that since the beginning of this year, the central bank has made many positive proposals for monetary policy in terms of total volume, interest rate, structure, exchange rate among others, which are conducive to further boosting market confidence.
In terms of total volume, there is still room to cut reserve requirement ratio, indicating that the central bank has the ability and willingness to increase macro regulation and support the real economy.
As for the structure, the central bank said it will study the creation of new structural policies, with a focus on supporting investment and financing for boosting scientific and technological innovation, promoting consumption and stabilizing foreign trade.
"Increasing financial support for major strategies, key areas and weak links will help promote smooth macroeconomic circulation, accelerate economic structural transformation and cultivate new growth drivers," said Wen Bin, the chief economist of China Minsheng Bank.
Regarding the exchange rate, the PBOC has reiterated that it will resolutely prevent the RMB exchange rate from overshooting, and has the experience, confidence and ability to maintain stable operation of the foreign exchange market.
The central bank said that it has sufficient reserve tools and policy space in the face of uncertainties in the macro environment, especially the external environment.
It said that many positive factors have underlined the improvement of the economic situation. With more proactive and effective macro policies continuing to take effect, it said, the financial system will provide more support for the recovery and improvement of the real economy and promote high-quality development.
China to implement moderately loose monetary policy, launch measures to support economy
Russian and Kenyan experts have hailed China's Central Economic Work Conference as a pivotal moment in shaping China's economic future, with its resilience offering a stabilizing force for the global market.
Their comments followed the annual Central Economic Work Conference, held in Beijing from Wednesday to Thursday.
Chinese President Xi Jinping delivered an important speech at the conference, in which he reviewed the country's economic work in 2025, analyzed the current economic situation, and arranged next year's economic work.
Vasily Kashin, director of the Center for Comprehensive European and International Studies at the HSE University, emphasized the significance of the meeting.
"This conference is of great significance. It is not only related to the assessment of China's current economic situation, but also outlined the priorities for the future, including the next five-year plan. There has been a renewed emphasis on the significant role of new quality productive forces, new growth points, and sci-tech development. This economic work conference places a greater emphasis on action. The content of the meeting covers various economic indicators that China hopes to achieve in the near future and involves a series of specific measures aimed at optimizing economic quality and ensuring sustainable development," he said.
Kashin said China's economic progress reflects a shift towards high-tech, sustainable industries and environmental improvements.
"The achievements of China's economy are primarily related to the changes in the export structure and the sources of growth. Enterprises in the high-tech, digital economy, and renewable energy fields are playing an increasingly important role. Their product exports are on the rise, which include electrical transportation equipment, latest types of vehicles, and complex industrial equipment. This is a very important achievement. China has also carried out a great deal of work in reducing greenhouse gas emissions, optimizing the ecological environment, and raising ecological standards. These are the main achievements China has made so far," said Kashin.
Meanwhile, James Shikwati, a Kenyan economist and director of the Inter-Region Economic Network, hailed China's economic resilience over the past five years.
"China's show of economic resilience for the last five years has given the global economic sector a stabilizing factor, because right now, as you speak, many countries are in panic mode because of protectionism that is rising, especially in developed economies such as the U.S. and Europe. And China has been showing this steadiness that its economy is able to withstand those shocks, and by showing that it can withstand those shocks, it gives hope to other economies, especially from the Global South, that have always heavily dependent on Western economies," said Shikwati.
Shikwati added that China's openness to new markets offers opportunities for developing countries worldwide.
"China's opening up to the world, what it is doing is offering an alternative platform, not necessarily stopping people from the old platform, but simply creating what I'll call some kind of fresh air in the global market system, so that countries, especially from the Global South, can access its markets," he said.
Int'l experts hail China's economic resilience with high-quality development
