Reform keeping economy strong

Editor's Note: An official from the National Development and Reform Commission was recently interviewed by Xinhua News Agency on China's economic development trend in 2022. The following are excerpts:

Despite facing a complex, grim and uncertain external environment, a shrinking demand, supply shock and weakening expectations, China still has many favorable factors supporting its economic development. With a strong resilience, great potential and a broad prospect, China's long-term economic trend has not changed, and it has enough means, confidence and ability to maintain steady, sound and sustainable economic development.

China's overall national strength has been rising and its industrial system is complete and well-established. That, along with people's improving living conditions, will further enhance China's ability to withstand risks. China has worked hard to address supply shortage and significantly increased the guarantee of energy and raw materials. It has accelerated efforts to foster a strong domestic market and made new strides toward building a new development paradigm, with a huge potential of consumption growth, and accelerated extension of traditional industries into digital, networked and intelligent industries.

The strengthened use of cross-cyclical and counter-cyclical macrocontrol policies has helped the country effectively maintain steady economic operation, and the considerable macroeconomic room to be left will help it continue to do a good job. China will continue to use macroeconomic policies and tools to deal with possible challenges and risks.

It will maintain continuity, stability and sustainability of macroeconomic policies, make them more forward-looking, targeted and effective, and keep their pace, intensity and focus to stabilize the overall macroeconomic market. A prudent but flexible monetary policy will be adopted, to maintain adequate liquidity and guide financial institutions to increase support for the real economy. Priority will be given to employment for key groups.

Also, policy coordination will be further strengthened to ensure steady economic growth. All policies will be evaluated and analyzed before they are introduced.

Given that the pandemic continues to dampen the recovery of consumption and domestic demand, the country will continue to deepen supply-side structural reform and resolutely implement the strategy of expanding domestic demand to strengthen the internal driving force for economic development.