Xi's latest piece on China's economic work
Part of his speech at the 2024 Central Economic Work Conference, published for the first time.
Qiushi/Seeking Truth 求是, CPC's flagship journal (the Chinese version is published biweekly and the English version bimonthly), on February 28, 2025, published a piece authored by Xi Jinping, titled 经济工作必须统筹好几对重要关系 Several key relationships in economic work must be handled properly.
The article's footnote states that this is part of Xi Jinping's speech delivered at the Central Economic Work Conference on December 11, 2024.
Typically, the official readout (always issued by Xinhua) does not disclose all of the speech content but selectively highlights key parts, so it can be said that a significant portion of the content in this article is being published for the first time.
Overall, the article is a detailed explanation of the following paragraph from the readout of 2024 Central Economic Work Conference.
会议认为，实践中，我们不断深化对经济工作的规律性认识。党中央集中统一领导是做好经济工作的根本保证，在关键时刻、重要节点，党中央及时研判形势、作出决策部署，确保我国经济航船乘风破浪、行稳致远。必须统筹好有效市场和有为政府的关系，形成既“放得活”又“管得住”的经济秩序。必须统筹好总供给和总需求的关系，畅通国民经济循环。必须统筹好培育新动能和更新旧动能的关系，因地制宜发展新质生产力。必须统筹好做优增量和盘活存量的关系，全面提高资源配置效率。必须统筹好提升质量和做大总量的关系，夯实中国式现代化的物质基础。
The meeting pointed out that, through practice, we have continuously deepened our understanding of the laws governing economic work. The centralized and unified leadership of the CPC Central Committee is the fundamental guarantee for carrying out economic work well. At critical moments and important junctures, the CPC Central Committee promptly assesses the situation and makes decisions and arrangements to ensure that China's economy braves the wind and the waves and sails steadily into the future. It is necessary to coordinate the relationship between an efficient market and an effective government to form an economic order that is both dynamic and well-regulated. The relationship between aggregate supply and demand must be properly managed to ensure the smooth circulation of the national economy. It is necessary to coordinate the relationship between fostering new drivers and upgrading old ones, and promote the development of new quality productive forces in light of local conditions. It is imperative to coordinate the relationship between optimizing incremental resources and making good use of existing resources to comprehensively improve the efficiency of resource allocation. The relationship between enhancing quality and expanding total output must be coordinated to lay a solid material foundation for Chinese modernization.
Below is my full translation of the article. I have tweaked some formatting for your reading convenience.
经济工作必须统筹好几对重要关系
Several key relationships in economic work must be handled properly*
by Xi Jinping
*Note: This is part of the speech delivered by General Secretary Xi Jinping at the Central Economic Work Conference on December 11, 2024.
The year 2024 marks a crucial year for achieving the objectives and tasks laid down in the 14th Five-Year Plan (2021-2025). In the face of a complicated and challenging environment of increasing external pressure and growing internal difficulties, the CPC Central Committee has united and led the entire Party and the Chinese people of all ethnic groups to respond calmly and implement comprehensive measures. As a result, the economy has maintained overall stability and made steady progress, high-quality development has been solidly promoted, and the main goals and tasks of economic and social development are expected to be successfully completed. China’s economic strength, scientific and technological capabilities, and overall national strength have continued to grow, marking new solid strides forward in advancing Chinese modernization.
The development journey over the past year has been extraordinary, with encouraging achievements. First, China's economic growth in 2024 traced a fluctuating trajectory: after a strong start, the economy faced increasing downward pressure in the second and third quarters, before rebounding in the end of the year. On September 26, the Central Political Bureau held a meeting and decisively rolled out a package of incremental policies, which effectively boosted the real estate market, stock market, market expectations, and social confidence, leading to a significant economic recovery. This not only facilitated the achievement of annual goals but also laid a solid foundation for economic development in 2025.
Second, the new quality productive forces developed steadily. Significant progress was made in technological innovation, including integrated circuits, artificial intelligence, and quantum technology. Traditional industries were steadily upgraded through the utilization of digital and smart technologies, and green and low-carbon transition was accelerating.
Third, reform and opening-up continued to deepen. The 20th Central Committee of the Communist Party of China, at its third plenum, laid out systematic plans for further deepening reform across the board to advance Chinese modernization. The high-quality implementation of the Belt and Road Initiative advanced steadily, high-standard opening-up achieved positive results, and foreign trade exports contributed more to economic growth.
Fourth, risks in key areas were effectively and orderly addressed. Positive changes were seen in the real estate market, while risks related to local government debt and small and medium financial institutions were effectively mitigated and managed.
Fifth, social welfare measures were solid and effective. Employment and prices remained stable, and the achievements of poverty alleviation were consolidated and expanded. Grain production exceeded 1.4 trillion jin (700 million tonnes) for the first time. Eco-environmental quality continued to improve, and social stability was maintained. These factors further strengthened our determination and confidence to forge ahead, overcome challenges, and steadily advance Chinese modernization on the new journey of the new era.
In analyzing the situation, we must adhere to the balanced approach—acknowledge the achievements while also addressing the challenges. Currently, as adverse impacts from the changing external environment have intensified, China’s economy continues to face difficulties and challenges, primarily including insufficient domestic demand, operational difficulties in some enterprises, pressures on people's employment and income growth, and many hidden risks. At the same time, it must be recognized that the Chinese economy is underpinned by a stable foundation, abundant strengths, strong resilience, and vast potential, and the supporting conditions and fundamental trend for long-term growth remain unchanged. As long as we stay confident, there are always more solutions than problems. We must face up to the difficulties squarely, strengthen our confidence, and strive to transform all positive factors into actual achievements in development.
First, it is essential to coordinate the relationship between an efficient market and an effective government to form an economic order that is both dynamic and well-regulated. The government must act decisively when necessary while also knowing when to refrain from intervention. Regarding "acting decisively when necessary", the government must focus on building a law-based and credit-driven economy, improving market regulations, and setting an example by following these rules. By taking strong action against corruption, ensuring public safety, and improving the overall market environment, the government aims to fix market failures, regulate competition, and create a unified national market where all businesses can compete fairly. Regarding "knowing when to refrain from intervention," the government must respect and fully leverage the market's decisive role in resource allocation, avoid inappropriate interventions in activities of micro entities, and prevent local protectionism and isolated economic practices. The more standardized government actions are, the more effectively the market can function.
Second, it is essential to coordinate the relationship between aggregate supply and demand to ensure smooth economic circulation of the national economy. It's important to balance supply and demand through coordinated efforts, and continuously improve supply-side structural reforms. This means making progress while also adjusting where needed, protecting key areas while reducing excesses, and ensuring a better match between supply and demand. Expanding domestic demand is crucial not just for economic stability but also for economic security. It’s a long-term strategy, not a temporary fix. The focus should be on strengthening areas of domestic demand, particularly consumption, so that it becomes the main driver of economic growth and a stabilizing force.
Third, it is necessary to coordinate the relationship between fostering new drivers and upgrading old ones, and promote the development of new quality productive forces in light of local conditions. We need to drive economic growth through technological innovation, actively develop emerging and future industries, and position ourselves at the forefront of global competition to create new sources of growth and competitive advantages. Furthermore, it's crucial to modernize and upgrade traditional industries, which are key to economic stability and job creation, breathing new life into them. This will help ensure a smooth transition as new and old growth drivers work together.
Fourth, it is imperative to coordinate the relationship between optimizing incremental resources and making good use of existing resources to comprehensively improve the efficiency of resource allocation. After years of development, China needs to improve both asset and liability management, effectively utilizing both incremental and existing resources, and finding ways to unlock value from existing assets to drive new growth. This includes continuing efforts to transform industrial parks by replacing outdated industries with more advanced ones, using policies that address hidden debts and put idle lands to good use. The goal is to balance the growth of incremental resources with the revitalization of existing ones, while managing assets and adjusting liabilities to open up new avenues for development.
Fifth, it is essential to coordinate the relationship between enhancing quality and expanding total output to lay a solid material foundation for Chinese modernization. China has a large economy, vast market potential, and strong industrial capabilities, which create favorable conditions for improving quality and strengthening industries. However, its per capita income is still below the global average, and there are ongoing challenges related to imbalanced and insufficient development. The focus should be on balancing quality and scale, making the most of the country's vast market and diverse opportunities. The goal is to foster more world-class companies and cutting-edge technologies, ensuring that both quality improvements and sustainable growth are integrated into the broader process of high-quality development. Enditem