BEIJING: There could be some cheer for Asia region including Malaysia amid the unveiling of China’s economic blueprint for next year, thus providing stabilisation to the global market.
Asia including Malaysia often view China as a main export destination, therefore such economic plan would not only benefit its people but also the region as whole.
China is Malaysia’s strongest trading partner, and the latter’s trade with China expanded 11.6 per cent to RM189.37 billion in the first 10 months of this year.
Exports rose 11.3 per cent to RM83.42 billion while imports increased 11.9 per cent to RM105.95 billion, mainly due to higher exports of petroleum products, metalliferous ores, electronic products as well as chemicals and chemical products.
Both nations are committed to increase two-way trade to US$160 billion by 2017.
At the recent Central Economic Work Conference, China announced an overarching strategy to lead its economy’s ongoing transition and next year’s focus would be on supply-side reform, or a package of supply-side policies to release new demand and boost new productivity.
Xinhua News Agency said the Chinese government would make fiscal policy more forceful and monetary policy more flexible to keep growth within a proper range next year, with a focus on structural reforms.
Quoting a report, it said China had taken steps to reduce regulatory approvals required to start a business, and cut interest rates charged by credit unions and other small lenders that serve the private sector.
Further measures would be taken next year to reduce the burden on enterprises in China, as part of a national campaign to promote “mass entrepreneurship and innovation”, the report said.
According to ChinaDaily.com, the measures meant that China would no longer seek to fuel economic growth solely by using fiscal and monetary measures to boost capital investment, consumption and exports.
Instead, the government will be more focused on devising policies which, from the supply side, are aimed at helping the industries it wants to support.
Outdated businesses would also be phased out, it said.
China also pledged to launch a series of policies next year that have been discussed for a long time, including more tax cuts, incentives for specific industries, regulatory reforms and more aid to lift people out of poverty.
It said supply-side reform covered two areas including to readjust the economic structure, crucially by shedding excessive industrial capacity.
Tapping on production factors including funds, resources, skilled workers, equipment and technologies would accelerate its growth by freeing up productivity and raising supply-side competitiveness. — Bernama