Central Economic Work Conference goes into day two. Reform is likely the keyword. The other highlight is quality of growth, rather than quantity.
Hard work, setting economic agenda at a time of economic restructuring.
"2014 will be the first year, and the most important year for China to implement the blueprint outlined by the CPC's 3rd plenary meeting. This year's Economic Work Conference will be guided by reform. This is the biggest highlight of the meeting," Liu Yuanchun, professor at Renmin University, says.
Analysts are waiting for the next batch of economic policies to see if reforms are as ambitious as promised.
"Previously, the government played a decisive role in resource allocation. Now China will let market play that role. This adjustment breaks a long-term system barrier to Chinese economy, and put it on track to transformation and upgrades," He Zhenhong, Director of China Entrepreneur magazine, says.
Accepting slower growth is the other key to China's economic transformation. Local governments will be measured on metrics like the environment, debt levels. It's a big change from the "fast growth above all else" mode of the past.
"The GDP growth target setting is the thing to watch, whether the government will set it at 7.5% or 7 %. If a lower target is adopted it will be good for China's reform and economic transformation," Pan Xiangdong, chief economist of Galaxy Securities, says.
The meeting comes as November economic data show signs of stabilisation, but economists warn fundamentals for a stable economic recovery still need consolidation. Challenges like overcapacity and fiscal risks mean officials at the conference will have their work cut out for them.
Source: CCTV
