Maintaining Stable Economic Growth inChina: Conditions and Strategies

Xu Xianchun1, and Liu Jinyu*2

1 National School of Development (NSD), Peking University, Beijing, China

2 Department of Macroeconomic Research, Development Research Center of the State Council, Beijing

Abstract: According to the Report to the 20th National Congress of the CommunistParty of China (CPC), development is the top priority of the Party’s governance forthe rejuvenation of the Chinese nation. Under the theme of promoting high-qualitydevelopment, our top priority is to enhance the quality and sustain a moderate rate ofeconomic growth. Stability in economic growth is an essential manifestation and inherentrequirement of China’s current development dynamics. This paper analyzes the necessity,favorable conditions, long-term challenges, and short-term situation of maintaining stablegrowth, as well as the critical significance of growth stability to the achievement of Chinesemodernization and the balancing of development and security. China’s relatively higheconomic growth rate, updating production factors, and world-class new economy createfavorable conditions for economic stability. However, there remain some domestic andinternational risks and obstacles. China’s economic development is on the path of recoveryand lacks inherent dynamism in the short term. To maintain stable growth, China mustrestore and expand aggregate demand, as well as enhance social expectations and economicperformance.

Keywords: Stabilizing growth, macroeconomy, aggregate demand

JEL Classification Code: E10

DOI: 10.19602/j.chinaeconomist.2023.07.05