Business Brief (Aug. 18): Premier Li Qiang Calls for Incremental Policies to Boost Domestic Demand

Published: Aug. 18, 2026 1:50 p.m. GMT+8

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Premier Li Qiang calls for incremental policies

Premier Li Qiang chaired a State Council plenary meeting on Aug. 17, noting that while the Chinese economy remains broadly stable, insufficient domestic demand remains a prominent issue, difficulties for some businesses are increasing, and external uncertainties are rising. He called for maximizing the effectiveness of existing policies and introducing practical, incremental measures to eliminate bottlenecks and promote sustained economic improvement.

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Premier Li Qiang stressed insufficient domestic demand and called for incremental policies to boost the economy.
July retail sales growth slowed to 0.6% YoY, industrial output rose 4.5%, and tier 2 city home prices declined.
Multiple provinces raised minimum wages by 6-8%, CXMT shares hit a record high, and auto chip certification standards were released.

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Who’s Who

Alibaba Group Holding Ltd.: According to the article, Alibaba Group Holding Ltd. spun off its gaming business Lingxi Games, which was acquired by private equity firm Trustar Capital.

SZ DJI Technology Co. Ltd.: A U.S. appeals court remanded a case involving SZ DJI Technology Co. Ltd. and the U.S. Department of Defense for retrial, citing errors in the original ruling.

Geely Automobile Holdings Ltd.: According to the article, Li Shufu resigned as chairman of the board of Geely Automobile Holdings Ltd., effective August 18.

Contemporary Amperex Technology Co. Ltd.: According to the article, battery giant Contemporary Amperex Technology Co. Ltd. (CATL) will require new suppliers to meet carbon-footprint criteria starting next year.

CXMT Corp.: CXMT Corp. shares closed up 12% to a record high on August 17, giving it a market capitalization of 4.13 trillion yuan ($613 billion). The rally was attributed to domestic substitution, AI compute expansion, and an upcycle in the memory sector.

Trustar Capital: Trustar Capital (信宸资本) is a private equity firm that acquired Alibaba Group's gaming business, Lingxi Games, after it was spun off in August 2024. This transaction was highlighted in a news summary.

Lingxi Games: According to the article, Alibaba Group Holding Ltd. spun off its gaming business Lingxi Games, which was acquired by private equity firm Trustar Capital.

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What Happened When

Before Aug. 17, 2026：: Chinese economy remains broadly stable but faces insufficient domestic demand, business difficulties, and external uncertainties.

July 2026：: China's retail sales of consumer goods rose 0.6% year-on-year, down 0.4 percentage points from June 2026, attributed to front-loaded effects of earlier stimulus measures.

July 2026：: New-home prices in tier 1 cities were flat month-on-month (compared with a 0.1% increase in June 2026), while tier 2 city prices fell 0.1% month-on-month (compared with no change in previous month).

Aug. 17, 2026：: Premier Li Qiang chaired a State Council plenary meeting calling for incremental policies to eliminate bottlenecks and promote sustained economic improvement.

Aug. 17, 2026：: CXMT Corp. shares closed up 12% to a record high, with total market capitalization reaching 4.13 trillion yuan ($613 billion), attributed to domestic substitution, AI compute expansion, and memory sector upcycle.

2026：: China published five certification and accreditation standards for the automotive chip industry to build a capability evaluation system.

2026：: Eight banks were added to the roster authorized to operate digital yuan services, lifting total to 30.

2026：: China released its 15th Five-Year Plan for oil and gas development centered on energy security and low-carbon growth.

2026：: Alibaba spun off its gaming business Lingxi Games, acquired by Trustar Capital.

2026：: A U.S. appeals court remanded a case involving SZ DJI Technology and the U.S. Department of Defense for retrial.

Aug. 18, 2026：: Li Shufu resigned as chairman of the board of Geely Automobile Holdings Ltd.

2026：: CATL announced it will require new suppliers to meet carbon-footprint criteria starting in 2027.

AI generated, for reference only

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