China, the world’s second largest economy, is preparing to make major changes in its economic strategies in the new year. Zhao Chenjing, deputy director of the National Development and Reform Commission (NDRC), has said that China is committed to opening up its economy to international trade and global markets.
US-China trade tension: the big reason
Trade tension with America is an important reason behind China’s new economic policies.
- Donald Trump’s stance:
- Newly elected US President Donald Trump has expressed his intention to increase taxes on Chinese imports.
- This has increased uncertainty in the trade relations between China and America.
- Previous Experience:
- Even during his previous tenure, Trump had imposed heavy taxes on Chinese goods, due to which China had to suffer economic shocks.
- China’s challenges are likely to increase further after the swearing-in of the Trump government on January 20.
China’s economic problems after Covid-19
China is facing many economic difficulties since the Corona epidemic.
- Debt problem of housing sector:
- The deepening crisis in the Chinese real estate sector is increasing pressure on the economy.
- Decline in consumer spending:
- The decline in consumer spending in the domestic market has slowed down the pace of growth.
- Unemployment among youth:
- The increasing rate of unemployment has become a serious problem for the government.
New initiatives for foreign investment
The Chinese government is implementing new policies to attract foreign investment.
- Zhao Chenjing said:
- “Our priority is on advanced manufacturing, modern services, high-tech innovation, energy saving and environmental protection.”
- Emphasis in economic areas:
- New trade policies are being implemented to attract foreign investors.
focus on green energy
China’s focus is now on moving its economy towards green energy and high-tech innovation.
- Change in energy production:
- In 2024, 40.5% of China’s total energy will come from wind and solar power.
- This figure is more than 36% last year.
- Green energy boom:
- Emphasis is being laid on investment and technological development to promote green energy.
Improvement in facilities for childcare and elderly
China is also implementing new policies for its aging population.
- Childcare facilities:
- The number of childcare centers is to reach 1,00,000 in 2024.
- Facility Center for the Elderly:
- 4,10,000 centers have been established improving facilities for the elderly.
China’s strategy: meeting global and domestic challenges
China is striving to stabilize its economy and increase competitiveness in international markets.
- Opening doors to global markets:
- China is working towards implementing more favorable policies for global trade.
- Dealing with domestic challenges:
- The focus is on problems such as rising unemployment, declining consumer spending, and the housing crisis.
