Skip to main content

Monetary Policy of China in 2013

By Kim Young-gyo

China will implement a cautious monetary policy next year, as the country seeks to rebalance its economic structure, a Beijing scholar said Monday.

Hu Xingdou, a political economist at the Beijing Institute of Technology, predicted China's newly installed leadership will seek to establish a monetary policy in that way, saying more measures to boost the country's consumption will be introduced as well.

A new crop of Chinese leaders for the next decade was appointed last month, with the members of the Chinese Communist Party's Standing Committee, the most powerful decision-making organ within the only de facto political party in the country, selected. The committee is led by Xi Jinping, who will be officially named the country's president next March.

China was expected to adjust the components of the economic growth largely driven by exports and investment in a bid to sustain rapid and stable growth for the rest of the coming decade.

"Stabilizing growth and securing people's livelihoods will be the major issues to be dealt with by the new leadership," Hu said.

"The leaders should put priority on adjusting the economic structure, but at the same time, they should still manage to maintain growth."

Hu expected that the country's economic recovery will accelerate if the authorities speed up efforts to boost the rural population's purchasing power through reforming the residency registration system and increasing land compensation for farmers.

Despite witnessing rapid economic growth during the past decade, China is widely seen to have distorted its economic structure through growth-focused policies.

The country is currently seeing the state-owned firms' dominance over private enterprises, lower domestic spending compared to higher external demand, and widening income gaps between the rich and the poor as well as between the urban areas and the rural areas.

In the national congress of its ruling communist party held last month, Beijing stressed that the world's No. 2 economy should attain the goal of building a "moderately prosperous society" in all respects by 2020.

It set a new target for economic growth, saying that China should double its 2010 gross domestic product (GDP) and per capita income for both urban and rural residents by 2020.

China's economic growth decelerated throughout this year due to the eurozone debt crisis and other global uncertainties.

Comments

Post a Comment

Popular posts from this blog

Buried Treasures in Bohol Philippines

Written by Joe Espiritu       Four persons died in a treasure hunting accident last week. They died for nothing. Many had lost their shirts in the venture, the propensity for Filipinos to get rich quick attribute to the treasure hunting mania. The sad part is that only the ignorant venture on the search, those in the know, being sure that nothing will come out of the effort would not think of investing money, time and effort – this time lives – in a fruitless enterprise.        There had been stories of people getting rich uncovering treasure troves in unlikely places. Most stories are false. Ancient graves of archeological and anthropological value had been desecrated by treasure hunters. They had found nothing. Those people may have struck it rich but not from some hidden riches. Contrary to what other people say, there are no buried treasures in Bohol . If there had been, they were unearthed years ago.         If one ...
Post a Comment
Read more

Fast Website Speed Affects Google Search Ranking

Over the course of 2009, a consistent theme that Google has been involved with is that of speed. In announcement after announcement, Google has talked about the importance of speed on the web, and how the company wants to do everything it can to make the web a faster place. Has it occurred to you that how fast your page loads may have a direct effect on how your site ranks in Google?  Don't worry, it hasn't had an impact...yet. In an interview with WebProNews , Google's Matt Cutts told us that speed may soon be a ranking factor.  "Historically, we haven't had to use it in our search rankings, but a lot of people within Google think that the web should be fast," says Cutts. "It should be a good experience, and so it's sort of fair to say that if you're a fast site, maybe you should get a little bit of a bonus. If you really have an awfully slow site, then maybe users don't want that as much." "I think a lot of people in 2010 are g...
Post a Comment
Read more

U.S. economic data reacts to crude oil price

Crude prices rose on Thursday as U.S. economic data came in positive and continuing unrest in the Middle East caused supplies fears. Market sentiment was boosted after the Commerce Department said U.S. gross domestic product expanded at a 2.7 percent annual rate, much faster than 2.0 percent it estimated last month. It was the quickest quarterly growth rate since the fourth quarter of 2011, helped by faster inventory accumulation and export growth, which offset weak consumer spending and a drop in business investment. Meanwhile, a report from the Labor Department added to the upbeat tone. The report showed U.S. initial jobless claims declined 23,000 in the week ended Nov. 24 to 393,000, as effect of Hurricane Sandy faded. Pending home sales climbed 5.2 percent in October, surging to its highest level in more than five years, according to the National Association of Realtors. Traders were closely watching the situation in the Middle East, in particular the viole...
Post a Comment
Read more