China bets on better policy enforcement to save economy, vowing more help in pipeline
- Beijing is prioritising boosting domestic demand, improving confidence and preventing risks for the remainder of the year, while looking to avoid past stimulus fallout
- Four ministries jointly vow to address weak links in China’s economy while intensifying efforts to address weak economic links and expand the policy toolbox
Beijing is sending the strongest message yet that it is doubling efforts to regain growth momentum, in a bid to quell doubts over the nation’s post-Covid recovery performance without making significant changes in its policies.
In a rare display of China’s commitment to achieving “quality development”, four central economic and financial ministries held a joint press conference on Friday, pledging to coordinate steps to address the weak links hampering growth and putting emphasis on a targeted implementation and sustainable recovery.
Efforts will also be taken to monitor risks in the economy, and all regulators will review and coordinate policies regarding details and timing before officially announcing them, so as to “maintain a stable and predictable policy environment”, said Yuan Da, director of the Department of National Economy at the National Development and Reform Commission (NDRC).
While Beijing’s actions have fallen short of market expectations by not including any groundbreaking stimulus measures, the moves are a testament to the political importance placed by Beijing on returning to stable and strong economic growth.
Other policies are also being stepped up to provide strong policy support for the continued recovery of the economy
So far, Beijing’s measures have been focusing on areas such as reinvigorating private and small companies, restoring market confidence, creating jobs and stimulating household consumption, Yuan said.