China is accelerating its efforts to introduce a series of new policies aimed at promoting economic development, according to Zheng Shanjie, chairman of the National Development and Reform Commission (NDRC), at a press conference on Tuesday.
Facing downward pressures on the economy, Zheng emphasized the importance of strengthening macroeconomic policies to counteract these challenges. He revealed that the Chinese government has allocated 700 billion yuan in the central budget to invest in major projects crucial to national development and security. Looking ahead, the government plans to continue issuing ultra-long-term special bonds and optimize their allocation to further support economic growth.
Boosting Domestic Demand
Enhancing domestic demand is a top priority for the Chinese government. Zheng highlighted plans to focus on improving livelihoods and boosting consumption by leveraging investment as a catalyst for growth. Measures include increasing incomes for middle- and low-income groups, promoting large-scale equipment upgrades to enhance commodity consumption, improving elder care and childcare services, and fostering new consumption models such as digital and green consumption.
Supporting Businesses
Addressing the challenges faced by many businesses, Zheng promised greater support to help them overcome difficulties and emphasized the importance of optimizing the business environment. The government will regulate administrative enforcement actions concerning enterprises, promptly alert regions where fines or confiscated revenues have increased unusually, and conduct inspections when necessary. Additionally, efforts will be made to accelerate the legislative process to create a favorable environment for the development of the non-public economy.
Stabilizing Markets
To tackle the weak real estate market, comprehensive measures will be implemented to promote stabilization. Effective strategies will also be introduced to revitalize the capital market, addressing recent fluctuations and boosting investor confidence.
Zheng highlighted that the overall operation of China’s economy remains stable. He noted that new productive forces are forming at an accelerated pace, and high-quality development is advancing deeply. With significant market potential and resilience, he expressed confidence that China will achieve its annual economic goals while maintaining sustained, stable, and healthy development moving forward.
In the lead-up to the National Day holiday (October 1 to 7), China announced several policies, including a monetary easing policy, lowering mortgage rates, and easing house-buying restrictions. These measures have led to a rapid increase in second-hand home transactions and a stock market surge on the first day after the holiday.
Reference(s):
China introduces package of incremental policies to boost economy
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