China Vows Timely Fiscal Measures as Economy Slows
China pledges timely fiscal support and spending reforms to counter economic slowdown, focusing on consumption and people.
China's government has pledged to introduce additional fiscal measures in response to evolving economic conditions, as growth momentum continues to weaken. Vice Finance Minister Liao Min stated on Friday that authorities would ensure the continuity and stability of macroeconomic policies, planning resource allocation over a longer timeframe.
Liao emphasized that fiscal spending would be further optimized, with a sharper focus on investments in people and boosting domestic consumption. This approach aligns with the leadership's earlier commitment at July's Politburo meeting to accelerate spending on already-budgeted infrastructure projects for the remainder of the year, rather than unveiling large-scale new stimulus packages.
The central bank has also indicated it would maintain an appropriately loose monetary stance and implement practical measures as needed, though it has stopped short of signaling explicit cuts to policy rates or the reserve-requirement ratio.
In addition to short-term support, Liao outlined plans to deepen fiscal and tax reforms, improve the budget management system, and establish a clearer framework for central-local fiscal relations. The goal is to define responsibilities more clearly and promote more balanced regional development.
Reiterating a key policy priority, Liao stressed that preventing the illegal accumulation of new hidden local government debt must remain an "iron discipline," while fiscal risks in key areas should be steadily reduced.