China is preparing to roll out a series of incremental policy measures to stabilise the overall economy, with policymakers signaling stronger fiscal, monetary and consumption-boosting initiatives on Monday as part of its larger drive to reinforce recovery amid external headwinds.
"We will continue to enhance policy research, ensure sufficient contingency plans, refine the policy toolkit for stabilising employment and the economy, and promptly introduce incremental policies in reserve in response to evolving situations," said Zhao Chenxin, deputy head of the National Development and Reform Commission.
Although the foundation for economic recovery is not yet solid amid mounting pressure from external shocks, Zhao emphasised that China has "abundant policy reserves" and "ample policy space" to act swiftly.
"We will accelerate the implementation of measures aimed at stabilising employment and the economy, "he said at a news conference in Beijing. "We will intensify efforts to ensure the effective implementation of established policies, including boosting consumption, full utilisation of this year's 5 trillion yuan ($685.22 billion) national-level investment funds and accelerating the establishment of a national venture capital guidance fund. Most of these measures are scheduled to be rolled out in the second quarter."
Looking ahead to the full year, Zhao struck a confident tone despite challenges ahead. "No matter how the international situation evolves, we will stay focused on our development goals, maintain strategic resolve and concentrate on managing our own affairs well," he said.
This year, China is placing a priority on expanding domestic demand, as it seeks to cushion the impact of the US tariff hikes.
Zhao said China possesses substantial potential in expanding domestic demand, highlighting clear strategies with approaches including raising incomes for low and middle-income groups, vigorously boosting consumption, expanding effective investment and strengthening domestic circulation.
He added that China recently allocated the second batch of funds for this year's consumer goods trade-in programs, with the first two batches totaling over 160 billion yuan. About 140 billion yuan in subsequent funding will be allocated based on local fund utilisation processes, while new initiatives will include establishing a childcare subsidy system and strengthening support for service consumption sectors and eldercare.
Regarding smoothening domestic circulation, Zhao said China will accelerate building a unified national market, launch a six-month campaign to rectify market access barriers, expedite the legislative process for the private economy promotion law and assist foreign trade enterprises in expanding the domestic market.
China's policymakers have emphasised the need to coordinate domestic economic work amid international economic and trade tensions, with efforts focused on stabilising employment, enterprises, markets and expectations, according to the meeting of the Political Bureau of the Communist Party of China Central Committee held on Friday.
To implement the measures mapped out by the tone-setting meeting, Sheng Qiuping, vice-minister of commerce, pledged to introduce detailed measures to further enhance consumption's role in driving economic growth, leveraging China's robust domestic market to better counter external risks and challenges.
On the monetary policy front, Zou Lan, deputy governor of the People's Bank of China, said the central bank will pursue more proactive macroeconomic policies and implement an appropriately accommodative monetary policy in line with the Political Bureau meeting.
"We will lower the reserve requirement ratio and interest rates at appropriate times based on domestic and international economic conditions and financial market developments, and maintain ample liquidity," Zou said. - China Daily/ANN
