Local Chinese officials unveiled their priorities for 2024, with pledges by some rich provinces to take the lead in driving growth shedding light on how Beijing’s economic strategy will play out nationwide.
Almost all 31 mainland provinces held meetings to discuss next year’s priorities after the end of the Central Economic Work Conference in Beijing earlier this month. The country’s top leaders at that conclave conveyed their commitment to stimulating the economy and developing emerging sectors.
Wealthy provinces such as Zhejiang and Guangdong responded to the central government’s call for economically strong regions to play a “pivotal role” in supporting the national economy. They pledged to speed up infrastructure investment and outlined plans to grow in high value-added sectors.
Less-developed or debt-ridden provinces, while promising to increase efforts to help local economies recover, were less vocal about taking aggressive measures and stressed they will prevent risks from spiralling out of control. Guizhou and Yunnan said they will take “concrete steps” to resolve risks.
Tianjin, Liaoning, Heilongjiang and a few others stopped short of repeating the phrase “consolidating stability through progress”, a new slogan used by top leaders that fuelled expectations for a more ambitious growth goal for 2024.
This isn’t the first time Beijing has asked regional powerhouses to bolster national growth. In July last year, then Premier Li Keqiang met with leaders of five coastal regions to urge them to introduce more supportive policies when the Covid-hit economy was on the brink of contraction.
Still, China’s post-pandemic recovery has struggled due to a property crisis, local government debt risks, faltering demand and geopolitical tensions. Beijing has stepped in with stimulus to secure this year’s growth target of about 5%.
Economists are expecting China to repeat that growth target next year, although it will be harder to achieve because of a higher base of comparison.Source: Bloomberg
