China’s government will hold an annual economic conference in Beijing late next week

The government of China will hold an annual economic conference in Beijing late next week to establish guidelines for monetary and fiscal policy in 2011, two people briefed on the matter, he said.

Officials may consider the objectives of loans and inflation in the December 10-12 meeting, one person said, speaking on condition of anonymity. Council of State and the center of the press officers of the bank declined comment.

China's central bank said that monetary conditions will lead back to "normal" after the unprecedented lending led to the country's economic recovery since 2008. After rising interest rates in October, officials have threatened to impose price controls and pledged to use tools such as the sale of state food reserves to counter rising inflation in 25 months.

President Hu Jintao and Premier Wen Jiabao, government officials and some managers of state-owned enterprises attended the meeting last year.

The change in government policy was adopted to tackle the global financial crisis, including rising rates, the dismantling of a fixed exchange rate, and increased bank reserve requirements. At the same time, policy makers have continued to describe monetary policy as "moderately easy" and fiscal policy of the nation as "proactive."

Credit Growth

Domestic banks extended about 6.9 trillion yuan ($ 1 billion) of new loans in the 10 months through October, according to central bank data. In addition, lenders have made 600 billion yuan in new loans this month, the 21st Century Business Herald reported Nov. 23. The figures suggest that the government's annual target of 7.5 trillion yuan may be violated.

global credit growth should be reduced to 15 percent next year from an estimated 18.8 percent this year, Xia Bin, an academic adviser to the People's Bank of China, said on 25 November.

Officials at the workshop can establish a higher inflation target of 4 percent for 2011, compared to 3 percent this year and go on to describe monetary policy "wise", China Business News reported on November 24 , citing an unidentified person who has been consulted on the policy. In October, inflation was more than expected 4.4 percent.