China considers stable economy a ‘crucial’ political issue in 2022 | Business and Economy
One official said that “all regions and departments” must help stabilize the economy ahead of the key Communist Party meeting.
Ensuring that the Chinese economy remains stable before a biennial meeting of the ruling Communist Party is “crucial,” a senior politician said, a sign of the outsized role the event will play in the nation this year.
“All regions and departments must take responsibility for stabilizing the economy,” Han Wenxiu, executive vice minister of the party’s central financial and economic affairs committee, wrote in Outlook Weekly on Tuesday.
Policymakers should roll out policies to support that goal, he wrote, while being careful of those that would cause a contraction. Han also insisted that budget spending be accelerated, with infrastructure work “appropriately addressed upstream.”
Investors have sold China’s benchmark government bonds since Han’s article on expectations that spending will boost the economy and with it inflation, appeared. The yield on decade-long bonds rose 3 basis points over the past two sessions to 2.82%, the highest in more than a week.
The leaders of China’s one-party system are keen to ensure that everything goes well before the congress, which is usually held in the fall. President Xi Jinping is expected to use the event to secure a revolutionary third term after having already maneuvered to place himself in the same class as Mao Zedong and Deng Xiaoping, men who ruled the Asian nation until their deaths.
Xi told the 25-member Politburo last week that his “main political task” was now to prepare for the congress, according to the state-run Xinhua news agency.
A few days later, Foreign Minister Wang Yi told the country’s diplomats that the “main theme” of their work this year would be to ensure a stable external environment and defuse all risks.
Li Zhanshu, chairman of the Legislative Standing Committee, called the upcoming congress “extremely and deeply important” and said lawmakers should show the results before the event, Xinhua reported.