The Central Economic Work Conference (CEWC) was held on December 18-20, setting the tone for China’s economic policies in 2018. China’s economy has entered a new era, moving from the phase of rapid growth to a phase of high-quality development. Economic policies will adapt to this shift. Adhering to the general tone of seeking progress amid stability, China will continue to implement proactive fiscal policy and prudent monetary policy. The country will further open up and let the market play a greater role in the allocation of resources.

Macroeconomic policies will foster high-quality development. The Chinese economy has entered a new era, moving from the phase of rapid growth to a phase of high-quality development. Promoting high-quality development will become a fundamental requirement for the government’s development strategies and economic policies. The country should speed up the establishment of indicators, policies, standards, statistical systems and performance evaluation mechanisms that help promote high-quality development.

Adhering to the general tone of seeking progress amid stability, China will continue to implement proactive fiscal policy and prudent monetary policy. While implementing proactive fiscal policy, China will adjust and optimize the structure of fiscal spending and strengthen the management of local government debt. Monetary policy will remain prudent and neutral as the country will control the money supply and maintain appropriate growth in bank credit and total social financing. China will keep the renminbi exchange rate basically stable at a reasonable and balanced level.

The CEWC proposed eight key economic tasks for 2018: 1) deepening supply-side structural reforms; 2) stimulating the vitality of various market players; 3) implementing rural revitalization strategy; 4) implementing coordinated regional development strategy; 5) promoting the formation of a new pattern of comprehensive opening; 6) improving social security and people’s well-being; 7) accelerating the establishment of a housing system which has multiple sources of supply and multiple means of supporting low-income families and encourages both rent and purchase; and 8) accelerating the development of ecological civilization.

China will speed up the establishment of a housing system which has multiple sources of supply and multiple means of supporting low-income families and encourages both rent and purchase. The CEWC statement did not mention the property tax, but instead proposed to develop the market for housing rental and especially long-term rental, and improve long-term mechanisms to promote the stable and healthy development of the real estate market.