Important news were announced in the conference of the political bureau of the Central Committee of the Chinese Communist Party (CCCCP) held on December 3rd: In 2011 China will implement a positive fiscal policy and firm currency policy. The currency policy is hence readjusted, from 'loose moderation' to 'firm'. This is a major shift in the main attitude behind China's currency policy. The change in attitude is a scientific response of China's policy makers towards the present situation in China and abroad, which ultimately will be beneficial to the healthy development of China's economy.
The data of the Statistics Department demonstrate that the gross domestic product (GDP) of China has increased by 10.6% in the last 3 quarters of the year, with an increase rate 2.5 percent points higher than the growth last year. China's economy has a great prospect of strengthening yet one step forward. With a good deal of promoting factors, the increase in commodity prices is also faced with quite a big pressure. Latest data display that China's inhabitants' consumer price index has reached 4.4% on October, setting up a new record for the last 25 months. Since the beginning of the year, the Central Bank of China, throughout the five times in which the rate of preparatory funds has been increased, has once raised interest rates and persisted in making the market dynamics known to the public, moderating the level of control on circulation of money credit, carrying out a high level of adjustment of the movements in the money conditions.
Past records show that in 1998, in order to respond to the pressure enforced by the Asian financial crisis and the stern deflation in China, China has initiated a firm currency policy. After 2003, loans, investments and the high rate increase of foreign exchange reserves, as well as other changes which have arose when facing motions in the economy, firm policies in currency have unceasingly been adjusted.
The conference of the political bureau of the CCCCP has also pointed out, that while implementing firm money policies, China shall continue to implement positive fiscal policies. Gu Kang, head of the Scientific Finance Department in the Ministry of Finance believes that while restraining currency inflation, China is still facing the tasks of stabilizing growth in its economy and adjusting the economic structure. Therefore, after the currency policy returns to stable terms, fiscal policies must maintain a moderate expansion during a fixed time period, achieving a sharp and steady economic development
 中共中央 zhōnggòngzhōngyāng - Central Committee of the Chinese Communist Party (CCCCP), the highest authority within the Communist Party and the State Council, the chief administrative body in China, consists about 50 members.
 国内生产总值 guónèi shēngchǎn zǒngzhí - Gross Domestic Product, the money value of the good produced in a country in one year.
 消费价格指数 xiāofèi jiàgé zhǐshù - Consumer Price Index, measures detecting price changes in different consumer good and services, consumed by households.
 中央银行 zhōngyāngyínháng - Central Bank of China.
 通货紧缩 tōng huò jǐnsuō - Deflation.
 财政部 cáizhèngbù - Ministry of Finance.
 通货膨胀 tōnghuòpéngzhàng - Currency Inflation.