China Doubles Down on Measures to Bolster Economy
What’s new: China’s State Council vowed to further expand the use of policy and development financial tools to improve market liquidity and encourage spending in a further effort to shore up the slowing economy.
The cabinet pledged Wednesday to accelerate the implementation of measures designed to bolster the economy and put as many detailed programs into practice as possible during the first half of September to consolidate the foundation for economic recovery.
The cabinet called for the full use of 300 billion yuan ($43.7 billion) in policy and development financial tools announced last week to provide liquidity for qualified projects and businesses. It also said it would expand the scope of sectors eligible for support from such tools to include urban renovation, highway construction and other projects and would lure more private capital to take part.
The context: China’s cabinet has made repeated pledges with a raft of measures to shore up the economy in recent weeks.
Last week, the cabinet issued 19 policies in hopes of creating synergies with policies already introduced to help stabilize the economy. The new policy package includes 300 billion yuan of quotas for policy and development financial tools, 200 billion yuan in quotas for bond issuance for state-owned power generating companies and 10 billion yuan of subsidies to agriculture.
China’s economic recovery remains fragile as persistent virus-control restrictions disrupt businesses and as the deepening property crisis dampens market sentiment. In a cabinet meeting earlier this week, Premier Li Keqiang said China has rolled out “more forceful” economic policies this year than it did in 2020 as he warned that the country faces an arduous task in ensuring economic recovery.
Quick Takes are condensed versions of China-related stories for fast news you can use.
Contact reporter Han Wei (firstname.lastname@example.org) and editor Bob Simison (email@example.com)
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