China's economy in 2018: what can one expect?« Back
In 2017, we saw the consolidation of China's power and influence around the world, as well as the power of the Communist Party leader Xi Jinping at the national level, "writes Alisa de Jong, a senior lecturer at the Department of International Law at the Australian Monash University.
This year, the Chinese Communist Party will try to use this to address some of its biggest economic obstacles, such as financial risk, environmental pollution and the maintenance of social cohesion.
The first and main priority will be the management and prevention of major financial risks in the Chinese economy. China will continue to purify and tighten control over its financial sector.
Beijing has already banned the use of bitcoins in its financial system, and the government says it will support the "active financial policy and prudent monetary policy" for 2018.
On the one hand, China banned investment in gambling and "sensitive" industries and limited investment in real estate, hotel business, cinema and sports. But projects related to China's ambitious initiative to develop infrastructure are actively encouraged. Thus, 2018 should be a continuation of China's growing economic influence around the world through infrastructure and other major projects.
In line with the party's orientation towards stability and minimizing risks, there is a clear determination to abandon high-speed growth in favor of high-quality growth. "Quality" here means an economy that is cleaner and more user-friendly.
The government is trying to reduce pollution. Measures to close polluting factories and to bring local officials accountable for environmental damage are beginning to act.
The most important component of the transition to a cleaner economy is China's determination to free itself from any dependence on imported raw materials.
Social stability for economic and political stability
Maintaining a harmonious society has long been a concern of Chinese leaders. In 2018, the anti-poverty campaign - one of Xi Jinping's projects - will accelerate, and millions of rural residents will be transferred to a new comfortable housing. This will not only increase GDP and economic growth, but will also support the party and its leaders. If successful, China's reforms will allow its economy to take the lead in adapting to a dynamic world.