In a year like no other, Chinese economy emerges stronger from unprecedented virus test

TARGETED POLICY MIX

The country's fast recovery rests partly with the extraordinary macroeconomic policy mix of raising the deficit, tax relief, cuts in lending rates and banks' reserve requirements.

"Unlike its European and US counterparts, China stayed away from using a deluge of stimulus policies but implemented more targeted counter-cyclical adjustments," said Xu Hongcai, deputy director of Economic Policy Commission of the China Association of Policy Science.

Compared with the 4-trillion-yuan (about $612 billion) stimulus package China adopted to cope with the 2008 financial crisis, this year's measures were "gentle," said Zhang Yansheng, chief researcher of the China Center for International Economic Exchanges.

To maintain stable liquidity while avoiding money flooding the market, China's central bank put more focus on enabling structural policy tools, including re-lending and rediscount programs.

China's financial institutions saved enterprises 1.25 trillion yuan during the first 10 months, and are expected to save 250 billion yuan more in November and December.

Stabilizing employment has been a macroeconomic policy priority throughout the year, as it closely relates to people's well-being and social stability.

Due to relentless job creation efforts, the country's unemployment rate reached 5.3 percent in October, the lowest of the year. Over 10 million new urban jobs were created during the first 10 months, meeting China's annual target ahead of schedule, according to data from the Ministry of Human Resources and Social Security.