China says it will make great efforts to consolidate economic recovery

The cabinet urged localities to speed up the construction of infrastructure projects and create employment opportunities for migrant workers, state media said. Financial institutions should make flexible arrangements for consumption loans for people affected by COVID-19, and efforts will be made to ensure stable development of the property market, the cabinet was quoted as saying.

China will make great efforts to consolidate the economic recovery, state media on Friday quoted the cabinet as saying.

China's economy is in a crucial window of recovery and the third quarter will be crucial, the cabinet was quoted as saying after a regular meeting. "We will make great efforts to consolidate the foundation of economic recovery, strive to stabilize the economy and keep the economic operation within a reasonable range, give priority to ensuring the achievement of the goal of stabilizing employment and prices," the cabinet was quoted as saying.

The economy has started a tepid recovery from the supply shocks caused by wide lockdowns, although headwinds to growth persist, including from a still subdued property market, soft consumption, and fear of any recurring waves of infections. There is still considerable room for policies, such as financing instruments via policy banks, to play a role in boosting investment, the cabinet was quoted as saying.

Authorities have given policy banks 800 billion yuan ($118 billion) in new credit quotas and allowed them to issue 300 billion yuan in bonds to fund infrastructure projects. The cabinet urged localities to speed up the construction of infrastructure projects and create employment opportunities for migrant workers, state media said.

Financial institutions should make flexible arrangements for consumption loans for people affected by COVID-19, and efforts will be made to ensure stable development of the property market, the cabinet was quoted as saying. It also reaffirmed support for the healthy development of the platform economy, enabling the sector to play a better role in creating jobs and promoting consumption. ($1 = 6.7578 Chinese yuan renminbi)

Also Read: Heads of MI5, FBI give joint warning of growing threat from China