MNI China Press Digest Dec 15: Services, Cross-Cycle, Economy

Highlights from Chinese press reports on Monday:

• China will accelerate the relaxation of restrictions on services demand and implement policies aimed at stimulating consumption in key sectors such as sports events, e-commerce and AI-driven activites, according to Xiao Weiming, vice secretary-general at the National Development and Reform Commission. In a recent keynote speech, Xiao highlighted that efforts will focus on vigorously developing the silver and the ice-snow economy. Additionally, the country plans to leverage central budgetary investments, ultra-long-term special government and new local government special bonds, and innovative policy-based financial tools to drive effective investment expansion.
• The introduction of the term "cross-cycle" in the latest Central Economic Work Conference signals a strategic shift in macroeconomic policy, according to Guan Tao, former senior official at the State Administration of Foreign Exchange. Guan explained that while macro policies will remain active, they will not involve excessive stimulus or a "flooding" of the economy. Instead, policies will be more tailored and flexible, leaving room for adjustments as needed. On fiscal policy, Guan noted that the deficit ratio is likely to remain around 4% next year, although the scale of new government debt—encompassing deficits, special bonds and special government bonds—could exceed the CNY11.8 trillion level set for this year. As for monetary policy, Guan highlighted that while the supportive stance will continue, large-scale easing was unlikely.
• China must actively pursue new growth opportunities in areas such as expanding consumption and investment, advancing technology and industrial development, and the promotion of urban-rural integration, according to Han Wenxiu, vice director at the Central Financial and Economic Commission. At a recent conference organised by the China Center for International Economic Exchanges, Han acknowledged that China’s current economic development faces complex, intertwined cyclical, structural and institutional challenges. He emphasised the importance of maintaining necessary fiscal deficits, managing total debt levels and ensuring adequate overall expenditure.