China says 2022 is a “key” political issue for a stable economy Business and Economics

The official said that “all regions and departments” should help to stabilize the economy before the main meeting of the Communist Party.

Two years before the meeting of the Communist Party of the Government, it is “essential” to ensure that China’s economy remains stable, a senior political official said, a sign of the tremendous role the event will play in the nation this year.

“All regions and departments must take responsibility for stabilizing the economy,” Han Wenxiu, the party’s executive minister for the party’s central finance and economic affairs committee, wrote in the state’s Outlook Weekly newspaper.

Officials should expand their policies to support this goal, he wrote, being cautious with those who would cause the contraction. Han also called for speeding up fiscal spending, and infrastructure work “must be pre-loaded.”

Investors have been selling China’s benchmark government bonds since Han’s article was expected to boost spending on the economy and, at the same time, inflation. Banknote yields due in a decade rose by 3 basis points in the last two sessions, to 2.82%, the highest in more than a week.

“Significantly Deep”

Leaders of China’s one-party system are keen to make sure that nothing goes wrong before the congress, which is usually held in the fall. President Xi Jinping is expected to use the ceremony to secure a third innovative mandate after maneuvers to place Mao Zedong and Deng Xiaoping in the same class of men who ruled until the death of the Asian nation.

Xi told the 25-member Politburo last week that his “main political task” now is to prepare for the congress, according to the official Xinhua News Agency.

A few days later, Foreign Minister Wang Yi told national diplomats that the “main theme” of this year’s work would be to ensure a stable external environment and eliminate risks.

Li Zhanshu, chairman of the Standing Committee on Parliament, said the upcoming congress was “very, very significant” and that lawmakers should show results before the event, Xinhua said.