China must prepare to tackle more trade disputes

This year marks the 70th anniversary of the founding of the People's Republic of China. It is also a crucial year for stabilizing economic growth, implementing the 13th Five-Year Plan (2016-20) and building a moderately prosperous society in an all-round way.

Despite the uncertainties of last year, this year China's top decision-makers have given many positive policy signals for growth. These signals, from the recent meeting to commemorate the 40th anniversary of reform and opening-up to the earlier Central Economic Work Conference, mean fiscal and monetary policies aimed at stabilizing overall demands may be a little more relaxed this year, and the policies and measures used to tackle such complicated global issues as the trade frictions with the US may be more flexible.

If China adopts such a policy approach, its economic growth and financial market may gradually recover in the second quarter of 2019, and the economy may buck the downward trend to achieve steady growth for the whole year.