New Year resolutions on economy

Reforms expected to meet tough challenges as China's new leaders mark out path for economy in 2013

The annual Central Economic Work Conference, where China's leaders set economic policy for the following year, was held in Beijing during Dec 15-16 -the first significant meeting since the new leadership took power last month.

A statement released after the two-day conference indicates that increased domestic consumption will play a fundamental role in economic development, and that opportunities from increased urbanization will be a main driver in this process.

In terms of macroeconomic policy, the statement says that the government will adopt a proactive fiscal policy and prudent monetary policy, and will continue to control property prices.

On the global economy, the statement says, although it will continue to grow slowly next year, it is still complex and full of possibilities for change. But protectionism is on the rise, and there is greater risk of inflation and asset bubbles.

"The world economy has entered a transformation stage from the high-speed increase stage before the crisis," the statement says.

The changing international environment means new opportunities for China's economic development, it adds. Previously, there were opportunities to integrate into the global distribution system, expand exports and increase investment. Now, China has to shift to expanding domestic consumption, improving innovation, and changing the pattern of economic growth.

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