Fundamentals and policies ensure recovery on right track

China's overall economy has maintained stable development with increasing positive factors.

According to data released by the authorities on Monday, the value added of China's industrial enterprises above designated size grew 5.4 percent year-on-year in November, 0.1 percentage point more than in October, and the total retail sales of consumer goods hit 4.38 trillion yuan ($601.2 billion), up by 3 percent year-on-year. The service sector production index grew 6.1 percent year-on-year in November, with the production indexes of information transmission, software and information technology services, and leasing and business services increasing by 9.3 percent year-on-year. The total import and export of goods hit 3.75 trillion yuan, with a growth of 1.2 percent year-on-year, and the trade structure continued to improve.

At the same time, the employment situation has generally remained stable, with the average surveyed urban unemployment rate from January to November being 5.1 percent, down 0.1 percentage point from the same period last year, and consumer prices rose 0.2 percent in November from a year earlier. Investment in fixed assets has also shown steady growth.

However, it should be noted that China's economic development is still facing a complicated external environment and insufficient domestic demand.

As the Central Economic Work Conference held last week indicated, the country must face up to difficulties, strengthen confidence, and strive to transform the positive factors into actual development achievements. China will therefore adopt a moderately loose monetary policy and a proactive fiscal policy.

China's economic fundamentals have not changed, and a series of favorable conditions underlying its sustained and high-quality development, such as the great potential of its superlarge market and its strong economic resilience, have not changed. All these, together with the Chinese government's strong macroeconomic control capacity and efficient policy implementation, will surely bring the economy onto the track of sustained recovery.