China's cabinet pledges stronger policy support to meet growth target
China's cabinet pledged on Monday to step up counter-cyclical policy support to address rising economic strains, signalling greater urgency to shore up growth and keep the economy on track to meet this year's target.
Existing policy measures should be implemented more effectively, while the issuance and use of government bonds should be accelerated, according to a state media readout of a cabinet meeting chaired by Premier Li Qiang. "In response to problems that have emerged in the current economic operation, China should step up counter-cyclical macroeconomic policy adjustments, promote sustained economic improvement and upgrading, and strive to achieve this year's economic and social development targets," the State Council said.
The cabinet also urged major infrastructure projects tied to the six national networks under China's 2026-2030 five-year plan to break ground as soon as possible. China's leaders have pledged to shore up the slowing economy by accelerating fiscal spending and introducing new policies "in a timely manner". Beijing is aiming for economic growth of 4.5%-5% this year.
The renewed push for policy support comes as China's economy shows signs of losing momentum. After growth slowed to 4.3% in the second quarter, industrial output, retail sales and investment all weakened at the start of the third quarter, while the property sector remained entrenched in a prolonged downturn. The cabinet also pledged more support for investment and consumption, including through interest rate subsidies, infrastructure upgrades and targeted policy measures.
It called for more efficient fiscal spending, greater use of unused local government debt capacity and flexible deployment of monetary policy tools. China will expand relending facilities for technology innovation, industrial upgrading, agriculture and small firms, while studying new measures to support the housing market, employment and income growth, the cabinet added.
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