The Chinese leadership has vowed to defuse risks in managing its crisis-hit property sector and mounting local government debts in 2024, state-run media said Tuesday, as the world's second-largest economy continues to grapple with challenges in fully recovering from the COVID-19 pandemic.
A two-day annual meeting to craft economic plans for next year pointed out that China "still has to overcome some difficulties and challenges," including lack of effective demand and overcapacity in some sectors, to further revive the economy, the official Xinhua News Agency said.
The country should "continue to implement a proactive fiscal policy and a prudent monetary policy with strengthened innovation and coordination of policy tools," the Central Economic Work Conference said, according to the report.
President Xi Jinping and Premier Li Qiang were among the participants of the meeting.
As the United States has implemented export controls on advanced semiconductors and high-tech products against China based on national security concerns, the meeting said Beijing will improve the resilience and safety of its industrial supply chains.
The conference also stressed the need to promote the digital economy and accelerate the development of artificial intelligence.
With high youth unemployment in mind, the leadership said China will ensure the stable employment of key groups and build a tight social security net.
Last week, credit rating agency Moody's downgraded its outlook for Chinese sovereign bonds from stable to negative, citing risks from a slowing economy and a slump in its real estate sector, with major property developers China Evergrande Group and Country Garden Holdings Co. saddled with heavy debts.
The agency expected China's growth will decelerate to 4 percent in 2024 and 2025 and an average 3.8 percent from 2026 to 2030. For 2023, Beijing has set its growth target at around 5 percent.
