China Unveils New Policies to Stimulate Economic Growth
In a strategic move to bolster its economy, China is accelerating the introduction of a series of incremental policies aimed at promoting economic development. Zheng Shanjie, chairman of the National Development and Reform Commission (NDRC), announced at a press conference on Tuesday that the government is set to strengthen macroeconomic policies to counteract downward pressures facing the economy.
Zheng revealed that the Chinese government has allocated 700 billion yuan in the central budget to invest in major projects related to national development and security. Looking ahead to next year, plans are in place to continue issuing ultra-long-term special bonds and optimize their allocation to further support economic growth.
Enhancing domestic demand stands as a government priority. Zheng emphasized that efforts will focus on improving livelihoods and boosting consumption, while leveraging investment as a catalyst for growth. To achieve this, the government plans to increase incomes for middle- and low-income groups, promote large-scale equipment upgrades to enhance commodity consumption, improve elder care and childcare services, and foster new consumption models such as digital and green consumption.
Addressing challenges faced by businesses, Zheng promised greater support to help them overcome difficulties and highlighted the importance of optimizing the business environment. The government aims to further regulate the actions of administrative law enforcement agencies concerning enterprises, promptly alerting regions where fines or confiscated revenues have increased unusually, and conducting inspections when necessary. Additionally, the legislative process will be accelerated to create a favorable environment for the development of the non-public economy.
To tackle the weak real estate market, comprehensive measures will be implemented to promote stabilization. Zheng also noted that effective strategies will be adopted to revitalize the capital market, addressing recent fluctuations and boosting investor confidence.
Despite the challenges, Zheng highlighted that the overall operation of China's economy remains stable. New productive forces are forming at an accelerated pace, and high-quality development is advancing deeply. The fundamental conditions for economic development in China remain strong, with significant market potential and resilience.
Expressing confidence in the nation's economic trajectory, Zheng affirmed that China will achieve its annual economic goals while maintaining sustained, stable, and healthy development moving forward.
In recent weeks, China announced a slew of policies, including a monetary easing policy, lowering mortgage rates, and easing house-buying restrictions ahead of the National Day holiday (October 1 to 7). 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.
