As China vows to boost economy, crippling zero-Covid policy may be ‘more zealously implemented’

Premier Li Keqiang vows more economic support measures after provincial investigations, cites ‘slight fluctuation’ in China’s economic recovery

Appearance by Vice-Premier Sun Chunlan, in charge of China’s virus-control measures, at special cabinet meeting brings hope of better coordination between virus control and growth objectives

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Premier Li Keqiang presides over a special meeting of the State Council in Beijing on Thursday. Photo: Xinhua

Published: 8:00pm, 13 Sep 2022

China continues to step up its unconventional policy tools to keep the national economy churning while trying to mitigate the damage from its zero-Covid policy, as control measures remain high on Beijing’s agenda ahead of the 20th party congress.

Premier Li Keqiang has been busy in recent months trying to steer the world’s second-largest economy away from a hard landing, including by convening a conference of more than 100,000 local cadres in late May, as well as dispatching 16 provincial inspection teams last month to implement Beijing’s stabilisation policies.

And at a special meeting of the State Council on Thursday to discuss the ministers’ report on the inspection tour, Li vowed to further expand investment to create more demand and lift confidence amid a “slight fluctuation” in China’s economy as it recovers.

“We must continue to introduce policies and measures to boost consumption and investment and ensure that they are released quickly and implemented thoroughly,” Li said, according to details of the meeting that were released by state media on Monday.

Following the publication of Li’s comments, Shanghai’s benchmark index rose by 0.05 per cent on Tuesday after a long holiday weekend that saw reduced travel and spending across the country.

Li, who chairs the State Council, China’s cabinet, has tried to reduce coronavirus disruptions, including by telling local authorities to increase their support for market players, to ease travel restrictions, and to step up economy-boosting construction projects.

While the provincial inspection teams – headed by central bank governor Yi Gang, finance minister Liu Kun and other officials – were ordered to continue tackling local economic problems, a new batch of inspections will also soon be carried out.

Such efforts came as the National Health Commission reported 188 new locally transmitted cases and 727 asymptomatic cases on Monday – the latest sign of the virus showing a resurgence in China.