The Chinese Communist Party’s Central Economic Work Conference listed real estate as a key area for risk prevention. State media stated that high vigilance is needed to guard against black swan events and gray rhino events that could destabilize the economy.
A commentary in the China Economic Daily said that the conference made clear arrangements to resolve risks around real estate, local debt, small banks, and illegal finance. According to the article, the goal is to hold the line against systemic risks while supporting development. This requires caution, preparation, and deeper consideration of potential troubles to guard against economic “rhino” events.
The article said that China faces many challenges – deep economic contradictions, accumulating risks, and an unfavorable global context. “In order to ensure smooth modernization, we must adhere to [the principle of] high-quality development and security.”
The Central Economic Work Conference emphasized stability through steady progress. More policies aim to stabilize expectations, growth, and employment. China will continue proactive fiscal policy and prudent monetary policy.
The commentary stressed that strong bottom-line thinking is indispensable. China must be cautious as when “walking on thin ice” and must “think of danger during times of peace.” It must estimate difficulties fully and be stable in coordinating resolution of local debts.
Source: Central News Agency (Taiwan), December 17, 2023
https://www.cna.com.tw/news/acn/202312170102.aspx