China hints at pro-business push and support for property market in 2023

China’s top leaders have said they will focus on boosting the economy next year, hinting at business-friendly policies, further support for the property market while likely scaling back fiscal stimulus.To get more international business news china, you can visit shine news official website.

After three years of strict "zero-COVID" restrictions, a crackdown on financial risk in the property market and targeting excessive growth of internet platform companies, leader Xi Jinping now appears to be loosening the reins.

At a two-day Central Economic Work Conference that wrapped up on Friday, Xi and other senior officials pledged to revive consumption and support the private sector, a marked shift from recent years.

Economists said the signals are clear that the focus next year is on boosting gross domestic product, with policymakers likely to target growth of 5% or higher.

That task will be a challenging one though given China is facing a surge in COVID-19 infections in the coming months after virus controls were hastily abandoned and consumer and business confidence remain at near record low levels.

In a sign that the pro-business stance is coming right from the top, the People’s Daily, the official newspaper of the Communist Party, ran a front-page article on Sunday titled, "The key is to boost confidence.” It quoted Xi in the article saying: "I have always supported private enterprises, and I also worked in places where the private economy is relatively developed.”

The ruling party’s leader in Zhejiang province in eastern China also visited Alibaba Group Holding’s headquarters on Sunday, urging the company to promote development and global competition.Here’s a look at the key takeaways from the Central Economic Work Conference and what analysts say it means for policies next year.

Officials said they will implement favorable policy to encourage private enterprises to grow and broaden market access for foreign firms. Singling out internet platform firms, the officials said they would support the companies in playing a leading role in economic development, creating jobs and competing in the international market.

The language on platform companies was much more positive than used during last year’s meeting, when leaders emphasized supervision of the industry and curbing its "wild growth.”

"The biggest change this year seems to be the increased focus on improving the business environment for foreign and private companies, especially the internet platform companies,” said Adam Wolfe, an economist at Absolute Strategy Research. "That could help restore confidence and boost investment in light manufacturing and the service sector.”Officials took a stronger pro-growth stance at the meeting than in recent years, stating the "amount” of economic expansion is important. Topping the list of priorities for next year was expanding domestic demand.

In particular, officials said consumer spending and employment growth should both be given a "more prominent position.” Incomes of urban and rural residents would be increased "through multiple channels,” they said, in order to expand spending in better housing, new energy cars and elderly care.

Consumer spending has been a weak spot for the economy during the pandemic and economists expect a rebound next year as COVID-19 restrictions end and infections subside. That’s likely to drive growth next year to 5% or above, from an estimated 3% this year.

Senior officials are debating a GDP growth target of around 5% for next year, Bloomberg News reported earlier this month. Several government-linked officials have argued the economy needs growth of at least that amount in coming years to meet China’s longer-term ambitions.