Proactive policy pledged to spur economic growth

China will adopt an "appropriately loose" monetary policy next year, the first easing of its stance in some 14 years, alongside a more proactive fiscal policy to spur economic growth, the Politburo was quoted as saying on Monday.

China will step up "unconventional" counter-cyclical adjustments, focusing on expanding domestic demand and boosting consumption, Xinhua news agency reported, citing a readout of a meeting of top Communist Party officials, the Politburo.

In 2025, authorities must adhere to "the principle of pursuing progress while maintaining stability," Xinhua said.

"A more proactive fiscal policy and an appropriately loose monetary policy should be implemented, enhancing and refining the policy toolkit, strengthening extraordinary counter-cyclical adjustments," the readout said.

Xi Jinping, general secretary of the CPC Central Committee, presided over the meeting, which also included non-CPC personages, last Friday. As 2025 will see the conclusion of the country's 14th Five-Year Plan (2021-2025), it is necessary to carry out macroeconomic policies that are more proactive and impactful, Xi said.

He called for expanding domestic demand, promoting the integrated development of technological and industrial innovation, stabilizing the property and stock markets, and preventing and resolving risks in key areas and external shocks.

With these efforts, expectations should be kept steady, and more vitality should be unleashed, to sustain the upward trend of the economy.

The People's Bank of China, has outlined five policy stances – "loose," "appropriately loose," "prudent," "appropriately tight" and "tight" – with flexibility on each side.

China adopted an "appropriately loose" monetary policy after the 2008 global financial crisis, before switching to "prudent" in late 2010.

Xi called for efforts to accomplish the goals and tasks of the 14th Five-Year Plan and lay a solid foundation for a good start of the 15th Five-Year Plan (2026-2030).

In the face of a more complex international and domestic environment, the Chinese economy has posted generally stable performance this year, making progress while ensuring stability, he added.

The major tasks and targets for economic and social development will be successfully accomplished this year, with new solid steps taken in Chinese modernization.

Lauding the contributions of non-CPC personages, Xi said it is a must to firm up the confidence of success so as to do a good job in economic work for next year. China's economy has a solid foundation with many advantages, strong resilience and great potential, and the supporting conditions and fundamental trend for its long-term sound development remain unchanged.