Stable Growth Expected for 2017

The Central Economic Work Conference held from December 14 to 16， which summarized Chinas economic work in 2016 and set the tone for 2017， has attracted widespread attention. Reform will remain as the focus in the new year， according to the conference.

The basic tone for economic work in 2017 is seeking progress while maintaining stability. Such a tone was set based on the fact that Chinas economy has entered a new normal phase of slower growth. It indicates that the Chinese Government will not use strong stimulus measures to spur the economy， but will solve the problems hindering economic growth step by step through deepening reform.

China will continue to implement proactive fiscal and prudent monetary policies and will increase the flexibility of its exchange rate regime while keeping the renminbi basically stable.

Continuity and stability of macro policies will be maintained in 2017. The priority of economic work in 2016 was to promote supply-side structural reform by reducing industrial capacity， destocking， de-leveraging， cutting corporate costs and improving weak links. The conference pointed out that such policies will be continued in the new year.

The conference made special arrange- ments for real estate market regulation， especially destocking， stressing that “houses are built to be inhabited， not for speculation.”To curb property market bubbles and avoid sharp price rises and drops， a comprehensive range of policies will be used and a fundamental， long-term and market-oriented policy tailored to Chinas conditions will be formulated.

Moreover， policies on advancing structural reform in agriculture， reviving the real economy and reforming state-owned enterprises （SOEs） were also unveiled. Among all， mixed ownership reform of SOEs is expected to make great strides. The conference said substantial progress of this reform should be made in electricity， oil， natural gas， railway， civil aviation， telecommunications and armaments sectors in order to form effective and balanced corporate governance structures and flexible and efficient market-oriented operating mechanisms.

Economic growth in China—now the worlds second largest economy—will continue to influence the global economy. The general aim set at the conference—seeking progress while keeping Chinas economy stable—could also serve to shore up confidence of the international community in future growth.