F REIGN TRADE - 中国国际贸易促进委员会

Setting Tone for
China Economy in 2011
by guo yan
Since the second quarter of 2010,
China economy has overtaken
the rank of Japan’s economy,
becoming the second largest
economy. And recently, the World
Bank predicted that the rate of China’s
contribution to the world economic
growth will reach 25% this year, then
China will be the first engine to the
global economic growth for two consecutive
years.
2011 is beginning of China
“Twelfth Five-Year Planning”. As the
wind-vane to judge the current economic
situation and to draw up the development
of macro-economic policies next
year, the central economic work conference
is vital for how to give the direction
for the realization of the “Twelfth Five-
Year Planning”. This time, the conference
stipulates six tasks including the
goal of macro-economic control, fiscal
and monetary policies, livelihood, price
reform, foreign economic and other issues
of concern.
In which, some policies highlighted
several “first times”. In 2010,
the price hikes reflected the living of
citizens. More efforts will be made to
ensure market supplies, stabilize prices
and regulate market order in 2011. At
first, China shift its monetary policy
stance from loose to prudent in 2011.
The second major task for economic
work next year is to ensure the effec-
tive supply of agricultural products. Anti-inflationary
macro-control work will become the focus
of next year. Since 2005 the policy of exchange
reform has carried out. It is the first time that “to
further improve the RMB exchange rate formation
mechanism” was emerged in the document
of central economic work conference publicly. In
addition, it also was the first time that this session
proposed to raise f the policy of expanding the
scale of import to the level of balancing the macroeconomic
and adjustment of economic structure
height.
This issue of livehood concerns a wide range.
The central economic work conference discussed
the issues including the education, employment,
health insurance, and housing. At the conference,
the emphasis was put on accelerating the developments
of the housing guarantee system, and it was
mentioned for the first time that a housing system
including both affordable housing and commercial
housing will be established in accordance with the
national conditions. As the increasingly expanding
income gap is setting barriers for Chinese social
development, the central government requires
strengthening the reforms on national income distribution
system. This is also the first time to appear
independently, not as one of the measures of
improving the livehood.
Therefore, how the central economic conference
shift monetary policy, improve the exchange
rate mechanism, expand the scale of imports, increase
housing “dual” supply and adjust the reform
of income distribution and other hot spots? This
issue of China’s foreign trade will give you more
detail.
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