China is stepping up efforts to launch a package of incremental policies to promote continued economic recovery and improvement
In light of the current economic challenges, China is intensifying efforts to roll out an extensive set of incremental policies designed to support economic recovery. During a press conference on October 8, the State Council Information Office provided critical insights into this initiative.
A representative from the National Development and Reform Commission (NDRC) shared that the policies focus on five primary areas: enhancing counter-cyclical macro policies, increasing domestic demand, providing more support for enterprises, stabilizing the real estate market, and revitalizing the capital market. The NDRC is committed to systematically implementing these measures as part of a coordinated strategy to foster stable economic growth, improve structural quality, and maintain positive trends, with a target for tangible results by year’s end.
When asked about the current state of the economy, NDRC Director Zheng Shanjie stated, “From a macro perspective, despite the complexities of both domestic and international environments, our economy remains stable and shows signs of progress. New productive forces are emerging, social welfare is improving, and we are making headway in risk prevention and high-quality development. Overall, the social environment continues to remain stable.”
However, Zheng also noted the challenges that lie ahead. The International Monetary Fund (IMF) has projected a global economic growth rate of just 3.2% this year, down from last year, and domestic pressures are mounting. Since the third quarter, key economic indicators—such as industrial output, investment, and consumption—have displayed significant fluctuations, while various sectors still face major risks.
Zheng emphasized that the successful implementation of these incremental policies requires a comprehensive and systematic approach, with enhanced targeting and precision necessary for effectiveness and sustainability. He detailed five specific focus areas:
1. Addressing economic downward pressures with strong counter-cyclical macro policies,
2. Tackling insufficient domestic demand by prioritizing consumer well-being and promoting effective investment,
3. Increasing support for struggling enterprises and improving the business environment,
4. Taking multifaceted measures to stabilize the challenging real estate market,
5. Implementing decisive actions to support the capital market following recent fluctuations.
There is a silver lining, as recent market expectations have significantly improved with the launch of these policies. The Purchasing Managers’ Index (PMI) for manufacturing has rebounded, the stock market is experiencing a resurgence, and consumer spending during the “Golden Week” in October showed impressive activity.
Moreover, the comprehensive incremental policies are designed to integrate various aspects such as fiscal, financial, consumption, investment, real estate, stock market, employment, and social policies, enhancing macro policy coherence and promoting unified action.
On the consumer support front, the NDRC is working to link consumption promotion with social benefits, focusing on raising incomes for middle- and low-income groups and implementing action plans to boost consumption. This includes increasing financial assistance for specific demographics, encouraging the replacement of old consumer goods, and expanding services in areas such as childcare and eldercare.
In terms of investments, the strategy centers on expanding effective investments and accelerating physical project realization. The NDRC has allocated 700 billion yuan from the central budget for critical construction projects and is expediting the issuance of special long-term bonds for strategic initiatives, having already issued 283 billion yuan by the end of September.
Deputy Director Zheng Beijie spoke about the importance of optimizing the business environment and committed to enhancing the legal framework affecting enterprises, improving regulatory practices, and addressing the real challenges businesses face.
Zhao Chenxin, also a deputy director at the NDRC, highlighted the overall stability and gradual improvement of China’s economy in the first three quarters of the year. He expressed optimism about achieving this year’s economic and social development goals, bolstered by the ongoing execution of these incremental policies. “We have the conditions, capabilities, and confidence to meet our targets,” Zhao affirmed.
