The annual Central Economic Work Conference was held from Dec 8-10 in Beijing. It reviewed the country’s economic achievements in 2021, analyzed current challenges and opportunities and outlined key tasks next year.
Seven aspects of economic work in 2022 were highlighted, including making macro policies prudent and effective, enhancing support for sci-tech innovation, vitalizing development through opening-up and safeguarding people’s well-being.
China’s economic plans have drawn attention of business leaders, experts and local officials, who shared the similar ideas that China will continue to maintain steady and high-quality development amid global recovery from COVID-19.
What’re their comments on the conference and expectations for next year?
Let’s have a look!
China will firmly advance the implementation of policies related to science and technology in 2022, according to the conference.
He Junfang, general manager of Boyu (Tianjin) Semiconductor Materials Co Ltd, regarded the plan as encouragement and support for innovative enterprises.
“We will devote more resources to high-tech research in the future, and make contributions to develop the self-made chips and screens,” he said.
Faced with the price rising in raw materials and weak market demand this year, CIMC Vehicles (Group) Co Ltd still hit a record high in revenue in the first three quarters.
“We will adhere to intensive and innovative development, and continue to make efforts in digital transformation to better serve logistics companies,” said Li Xiaopu, vice-president and chief technology officer of CIMC Vehicles.
As China’s top leadership acknowledged that the country is facing threefold pressure from contraction of demand, supply shocks and weaker expectations, we have to face up to the difficulties, and do a great job with firm determination next year, according to the company.
Proper understanding of China’s carbon-neutrality goals
The conference also emphasized the phase-out of traditional energy, clean and efficient use of coal, control on the amount and intensity of carbon emissions, as well as establishing a mechanism for pollution control.
Li Bin, founder of NIO – China’s new energy vehicle manufacturer, felt excited about China’s low-carbon strategies mentioned in the economic work conference.
“Green and low-carbon push forward the transformation of China’s auto industry, and help to increase the sector’s international competitiveness,” Li said. He expected the deeper integration of new technologies and industry, which would create more growth momentum in the future.
Ligao New Energy Technology Co Ltd, a power system provider for EV based in Anhui province, saw its business boom this year while the company was still in trouble of cash flow pressure.
Wang Hanchao, founder of Ligao, said he has clearly seen increasing support from banks and other financial institutions for innovative SMEs this year.
“The move will encourage more production resources to flow into high-tech enterprises and give us more confidence,” Wang said, “and the company will increase R&D investment in smart energy, energy storage and other fields, accelerate the localization of key areas and upgrade the modernization of the industrial chain.”
The Central Economic Work Conference highlighted need to vitalize development through reform and opening-up in 2022, with pilot reforms of the market-based allocation of production factors and comprehensively implement registration-based initial public offering mechanism.
The country will expand high-quality and institutional opening-up, grant foreign-funded enterprises national treatment, attract more investment from multinational companies, and facilitate the early implementation of major foreign-invested projects.
Mettler Toledo, a leading global manufacturer of precision instruments and services in Switzerland, established its Chinese headquarters in Yangshan Special Comprehensive Bonded Area at Lingang Special Area in Shanghai.
Zhu Zhisong, executive deputy director of the Lingang Special Area Administration, said the Lingang Special Area will vigorously devote itself to the new round of all-round high-quality opening-up and reform, exploring new opportunities in investment access, new mode of international trade and offshore business.
According to the annual Central Economic Work Conference, the country will promote both the economic development and the well-being of its people and make basic public services more available.
Efforts will be made to boost the employment of young people, enhance the basic old-age insurance, and further implement the new childbirth policies amid efforts to deal with an aging population.
The Global Research team at Bank of America said Chinese policymakers focus on both economic stability and long-term social development goals such as common prosperity, de-carbonization, reducing the burden of housing, education as well as healthcare.
The economic plan in 2022 showed that China’s economy engines will shift from real estate to new momentum, such as renewable energy, electric vehicles and 5G, it said.