China to step up policy support to steady economy

The complexity, severity and uncertainty of China's economic development environment have increased," the Politburo was quoted as saying. "Stabilising growth, employment and prices are facing new challenges.

China will step up macroeconomic policy support to stabilize the economy as domestic COVID-19 outbreaks and the Ukraine war raises risks, state media quoted the Politburo, a top decision-making body of the ruling Communist Party, as saying on Friday.

China will adopt a package of policies to help COVID-hit industries and small firms, the media reports added, citing a meeting of the Politburo chaired by President Xi Jinping. "The COVID-19 and Ukraine crisis has led to increased risks and challenges. The complexity, severity, and uncertainty of China's economic development environment have increased," Politburo was quoted as saying.

"Stabilising growth, employment and prices are facing new challenges. It is very important to do a good job in economic work and effectively protect and improve people's livelihood." Financial markets were hit hard over the past two weeks on fears that lockdowns in China would cause severe damage to its economy and derail a global recovery just as many countries are rebounding from the pandemic-led slumps.

However, Politburo said authorities will continue to implement the controversial dynamic zero-COVID policy to control the outbreaks while minimizing the impact on the economy. China will strive to keep economic growth within a reasonable range and achieve social and economic targets for 2022, the Politburo said.

"We should accelerate the implementation of policies, implement tax rebates, tax and fee cuts and other policies, and make good use of all kinds of monetary policy tools," it said. It will also back healthy development of the property market, and ensure stable operations of capital markets while guarding against systemic risks.