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Tuesday, January 19, 2021, 22:54
China to support economic recovery, vows no 'policy cliff'
By Xinhua
Tuesday, January 19, 2021, 22:54 By Xinhua

BEIJING/SHANGHAI - China will not see a "policy cliff" in 2021 as the country aims to keep its macro policies consistent, stable and sustainable to support steady economic recovery, an official said Tuesday.

"China's macro policies will be in line with the needs of sustaining stable and sound economic development, and there will be no abrupt turnarounds," Yan Pengcheng, an official with the National Development and Reform Commission, said at a press conference.

Yan underscored the necessity of sustaining supportive measures this year, as some micro, small and medium-sized enterprises have just managed to navigate the COVID-19 slump and still need some time to recover.

We will have a good grip over the pace, intensity and effectiveness of macro policies to make sure the economic recovery remains stable and avoid a policy cliff.

Yan Pengcheng, Director of General Office, National Development and Reform Commission

China’s economy picked up speed in the fourth quarter, with growth beating expectations as it ended a rough coronavirus-striken 2020 in remarkably good shape and remained poised to expand further this year even as the global pandemic rages unabated.

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“We will have a good grip over the pace, intensity and effectiveness of macro policies to make sure the economic recovery remains stable and avoid a policy cliff,” Yan said.

Last year, China unveiled a series of special measures in response to the pandemic-induced economic fallout. Those measures played an important role in stabilizing the Chinese economy amid the ravaging COVID-19 and global economic recession.

But some of the temporary and emergency relief policies cannot be used as "long-term solutions," Yan noted.

With the economy gradually restoring strength, more efforts are needed to stimulate the vitality of market entities via reforms and innovation, which will also provide more space for policymakers to maneuver in the face of a more complicated situation in the future, Yan added.

In the key Central Economic Work Conference held last month, China's policymakers have vowed to keep macro policies consistent, stable and sustainable in 2021, with continued implementation of a proactive fiscal policy and prudent monetary policy.

READ MORE: China to focus on sustainable, resilient growth

China is likely to cool credit growth and scale back fiscal stimulus this year to help stabilize debt levels, but policymakers are likely to tread cautiously to avoid derailing the recovery, policy insiders said.

In addition to policy steps such as interest rate cuts and increased fiscal spending, the government has unveiled some targeted measures, including cheap loans for some sectors and deferred loan repayments for small firms.

With Reuters' inputs


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