China’s state planner warns of rising economic risks in second half
Policymakers told to make ‘bigger effort’ to hit targets for growth, jobs, inflation and trade
China’s economy is facing increasing risks in the second half of the year and policymakers need to step up efforts to hit key development goals, the head of the state planning agency warned, as US trade tensions intensify.
“Targets in economic growth, employment, inflation and exports and imports can be achieved through effort,” He Lifeng told the standing committee of the National People’s Congress on Tuesday, according to a statement on the National Development and Reform Commission’s (NDRC) website.
“But to achieve growth goals in consumption, outstanding total social financing and urban disposable income will require bigger effort.”
Weighed down by rising financing costs, China’s economy was already starting to cool even before the trade dispute with Washington escalated, with investment growth at a record low and consumers turning more cautious about spending.
Beijing is speeding up infrastructure spending and offering help to smaller companies to prevent a sharper slowdown, though policymakers are wary of adding to a mountain of debt that was fuelled by past stimulus binges.