China to keep policies steady in 2020

China will keep its economic policies steady while making them more effective in 2020 to help achieve its annual growth target, the Xinhua news agency said on Thursday, after a meeting of top leaders ended, amid a bruising trade war with the United States.

Citing a statement issued after the annual Central Economic Work Conference, it said China will maintain its proactive fiscal policy and prudent monetary policy, making economic adjustments more forward-looking, targeted and effective.

“In order to achieve the expected target for next year, we should prioritize stability. Macro policies will be stable, micro policies will be flexible, underpinned by social policies,” Xinhua said. China’s economy faces increased downward pressure as the global economy slows and the government should be prepared for greater international economic volatility and risks, it said.

The annual gathering of top leaders and policymakers is being watched by investors for any fresh policy steps to ward off a sharper slowdown in the world’s second-largest economy.

Growth has already cooled to a near 30-year low of 6% in the third quarter and could slip further in the fourth quarter, though for the full year it remains on track to meet the government’s target of 6-6.5%.

The government has been urged to lower its economic growth target to around 6% for 2020. China will keep its economic growth within a reasonable range in 2020, with more “forwarding-looking, targeted and effective” policies that also fend off risks, the politburo, a top decision-making body of the ruling Communist Party said last week.

Next year will be crucial for the ruling Communist Party to fulfill its longstanding goal of doubling gross domestic product and incomes in the decade to 2020, and to turn China into a”modestly prosperous” nation. Xinhua reported that the conference also committed to increasing the quality and effectiveness of fiscal policy while monetary policy will be flexible and appropriate.

China will deepen financial supply-side reform and increase medium to long-term financing for manufacturers, and ensure money supply, credit and social financing growth is in line with economic growth.

China will stabilise and expand the use of foreign capital and keep foreign trade growth steady, the agency said.