In his new year’s speech, President Hu Jintao addressed concerns about uncertain economic growth and global economic recovery in 2012. Although Hu did not give any specific details, he claimed that he would give priority to the improvement of the people’s well-being. Business Week reports:
“We will continue to manage well the relationship between stable and relatively quick economic growth, structural adjustment and inflation,” Hu said. “Global interdependence is deepening while instability and uncertainty in the world economy’s revival is increasing.”
The government is wrestling with the aftermath of past stimulus, including the debt burdens of local-government investment vehicles. Companies also face rising labor costs, and Communist Party leaders have recently sought to defuse protests over illegal land use and environmental pollution.
While the 25-member Politburo affirmed an unchanged “proactive” fiscal stance for 2012 in December, a Nov. 30 cut in banks’ reserve requirements indicated a shift toward a bigger emphasis on supporting growth.
Earlier today, the head of China’s central bank, Zhou Xiaochuan, said the country would maintain a “prudent” monetary stance and ensure that policy remains stable in 2012.
While Hu addressed the economy, he also addressed the status of Hong Kong, Macau, and Taiwan. China Daily translates Hu’s speech:
In the new year, we will unswervingly adhere to the road of socialism with Chinese characteristics, follow the guidelines of Deng Xiaoping Theory and the important thought of Three Represents, and further carry out the Scientific Outlook on Development. We will continue to properly deal with the relationship among maintaining a stable and relatively fast economic growth, adjusting economic structure and managing inflation expectations. We will accelerate the change of economic development mode and structural adjustment, focus on ensuring and improving people’s livelihood and work hard to consolidate the healthy momentum of economic and social development.
We will uphold the principles of “one country, two systems”, “Hong Kong people governing Hong Kong” and “Macao people governing Macao” with a high degree of autonomy. We will work together with our compatriots in Hong Kong and Macao to maintain long-term prosperity and stability in the two Special Administrative Regions. We will adhere to the principles of “peaceful reunification and one country, two systems,” continue to promote the peaceful development of cross-Straits relations, maintain the essential interests of the Chinese nation and enhance the common interests of compatriots on both sides of the Taiwan Straits.