Leaders at the recent Politburo conference, including President Hu Jintao and Premier Wen Jiabao, said the government will focus on increasing domestic demand, particularly private consumption, in 2010.
Policymakers reiterated they would continue with a moderately loose monetary policy and active fiscal policy at their annual economic work conference, which provides the blueprint for the coming year’s economic policies. They offered no major changes to the macroeconomic policies adopted late last year to combat the global financial crisis.
Many economists say China should start reining in monetary policy next year as the economic recovery will likely have consolidated by then and inflation is expected to return.
The latest data shows China’s economic growth rebounded to 8.9% in the third quarter from a year earlier, accelerating from 7.9% in the second quarter and 6.1% in the first quarter.
The policy makers plan to encourage farmers to migrate to cities next year and ease restrictions on gaining permanent residency in the country’s small and medium-sized cities will be loosened.
Wall Street Journal reported that before the conference a Politburo meeting in late November had set the tone for the meeting, saying China will maintain its basic economic policy in 2010.