China Plans on Continuity in Economic Policy in '13 ; Conference Report Warns of Need to Wean Country from Reliance on Exports

By Bradsher, Keith | International Herald Tribune, December 17, 2012 | Go to article overview

China Plans on Continuity in Economic Policy in '13 ; Conference Report Warns of Need to Wean Country from Reliance on Exports


Bradsher, Keith, International Herald Tribune


An annual conference that helps set economic policy in China ended with a government statement Sunday warning about the risks that industrial overcapacity and financial-sector weakness posed.

An annual conference that helps set economic policy in China ended with a lengthy government statement Sunday warning of difficulties in the global economy as well as industrial overcapacity and financial-sector risks at home.

But a review of the two-day conference's activities, which was released by the official Xinhua news agency, suggested few changes in existing economic policies, calling for continuity for the time being.

The statement endorsed tax cuts, continued curbs on real estate speculation and a broader effort to increase domestic consumption and wean the economy from its dependence on exports and investment.

"The opportunities facing us are no longer the traditional ones of simply entering the international division of labor, expanding exports and accelerating investments, but rather new opportunities forcing us to expand domestic demand, improve innovative capacities and promoting the transformation of the mode of development," the statement said.

Held in December each year, the Central Economic Work Conference in theory is jointly run by the Central Committee of the Communist Party and by the government's cabinet of ministers. In reality, the Standing Committee of the Politburo has the power, and all seven of its members attended the conference, together with Prime Minister Wen Jiabao, who left the standing committee last month but remains in office as prime minister until the National People's Congress next March. …

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