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Setting Tone for Ch ina Economy in 2011


  By Guo Yan

  Since the second quarter of2010,China economy has overtakenthe rank ofjapan´s economy,becoming the second largesteconomy. And recently, the WorldBank predicted that the rate ofChina´scontribution to the world economicgrowth will reach 25% this ye´ar, thenChina will be the first engine to theglobal economic growth for two con-secutive years.

  2011 is beginning of China"Twelfth Five-Year Planning". As thewind-vane to judge the current econom-ic situation and to draw up the develop-rnent of macro-economic policies nextyear, the central economic work confer- ence is vital for how to give the directionfor the realization ofthe "Twelfth Five-Year Planning". This time, the confer-ence stipulates six tasks including thegoal of macro-economic control, fiscaland monetary policies, livelihood, pricereform, foreign economic and other is-sues ofconcern.

  In which, some policies high-lighted several "first times". In 2010,the price hikes reflected the living ofcitizens. More efforts will be made toensure market supplies, stabilize pricesand regulate market order in 2011. Atfirst, China shift its monetary policystance from loose to prudent in 2011.The second major task for economicwork next year is to ensure the efi:ec-tive supply of agricultural products. Anti-infla-tionary macro-control work will become the focusof next year. Since 2005 the policy of exchange .reform has carried out. It is the first time that "tofurther improve the RMB exchange rate forma-tion mechanism" was emerged in the documentof central economic work conference publicly. Inaddition, it also was the first time that this sessionproposed to raise f the policy of expanding thescale ofimport to the level of balancing the mac-roeconomic and adjustment ofeconomic structureheight.

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