A sense of urgency

China’s top officials are committed to consolidating the economic recovery further in 2024.

• That was our key takeaway from the annual Central Economic Work Conference (CEWC) that concluded on Tuesday in Beijing.

Some context: The CEWC is the Party’s annual economic planning session for the year ahead. Officials use the meeting to identify key economic policy priorities for the coming 12 months.

To us, the meeting readout made clear that officials will widen their support for the economy – and that achieving a higher pace of growth is once again a top priority.

Why’s that? First, the readout repeated a key phrase from Friday’s Politburo meeting, saying:

• “Next year, we must adhere to the principles of seeking progress while maintaining stability, promoting stability through progress, and implementing policies that are conducive to stabilizing expectations, growth, and employment."

The emphasis on “progress” as a means to “stability” is important.

• This is the first time in 11 years that top officials have explicitly emphasized economic progress over economic stability.

Additionally, officials closed the readout by expressing a sense of urgency about boosting the economy, saying:

• “We must…effectively enhance the sense of responsibility and mission to do a good job in economic work, seize all favorable opportunities, make use of all favorable conditions, work quickly when we see it, and do as much as we can.”

Get smart: Market reaction to the meeting readout has largely been bearish, but we see top officials gearing up to fight harder to support growth next year.