The Chinese Politburo has indicated that supply side reforms will remain a key focal point of economic policy on the road ahead.
The most recent meeting of the CCP Politburo convened on 25 April by President Xi Jinping praised China’s local governments for continuing to “uphold the main line of advancing supply side structural reforms, actively promote structural adjustments, switch from old to new (economic) drivers, and effectively prevent financial risk.”
China’s senior most political body hailed the country’s economic performance since the start of 2017, pointing to rising stability in the first quarter, revitalised growth and returns, improvements to market forecasts and the increasing contribution of domestic demand to growth.
The Politburo made the caveat, however, that improving economic performance was partially due to cyclical factors and that China’s economic reforms still had a long, challenge-fraught path to tread.
It called for local government to actively promote supply side structural reforms while also properly performing various forms of risk prevention work and promptly resolving any economic problems that arise.