China’s Planning Body Vows to Prioritize Risk Prevention in 2021

China’s top planning body vowed to maintain economic stability and prevent risks in 2021, while enhancing internal demand to create a robust domestic market.

The National Development and Reform Commission will take precautions against financial risks and work to resolve them, the planning body said in a statement Sunday. It pledged to use market-oriented and legal measures to manage corporate debt defaults, the statement showed.

The committee also stated it will step up efforts to stabilize coal, electricity and oil prices as well as other goods, and prepare to supply natural gas, electricity and coal during the peak season. Pushing ahead with the construction of a supply, storage and distribution system for coal, electricity, oil and gas will also be a part of its plans to mitigate risks in the sector, it added.

China will implement “reasonable” monetary policy next year and ensure fiscal plans are “sustainable,” according to comments published by state media Friday after the Communist Party’s annual Central Economic Work Conference. The comments signal an easing of stimulus measures as the economy continues to recover.

The ruling party uses the conference to set its policy framework for the coming year, with analysts expecting a renewed focus in 2021 on slowing the pace of debt growth and insulating the economy from tensions with the U.S.

©2020 Bloomberg L.P.

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