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China's Economic Strategies to Boost Growth Amid Challenges
2024-08-01 09:00:08

China's Economic Strategies to Boost Growth Amid Challenges

China aims for 5% annual GDP growth, implementing 'tangible, effective, accessible' policies as Premier Li Qiang calls for expansion in fiscal policy. Measures include 300 billion yuan in treasury bonds for upgrades and market access reforms.

The focus is on stabilizing market expectations, nurturing key industries, and unifying the national market. Tight fiscal measures in early 2023 had limited impact, but flexibility in bond usage is expected to provide effective support.

Despite bright spots in exports and the industrial sector, sluggish domestic demand and trade frictions pose risks. The Politburo pledges countercyclical policies to meet growth targets, while the PBOC holds key monetary decisions amid challenges like weak demand and debt concerns.

Uncertainty looms over global monetary policy, influenced by China's yuan internationalization and potential shifts in leadership and policy.

Related news on that topic:

China's Vice-Premier Outlines Industrial Policy Roadmap

China's Vice-Premier has laid out a road map for the country's industrial policy, emphasizing the need for government planning, innovation, and an open ecosystem. The government aims to develop new productive forces and maintain its global position amidst fierce competition and US suppression. The third plenum decision document highlights the importance of balancing government intervention and market forces, addressing market failures, and lifting restrictions. Justin Lin Yifu, an influential economist, supports industrial policy as a tool for economic development and believes China can avoid the path of Japan's economic stagnation. The government is also taking steps to protect and support private enterprises, establish a unified national market, and implement fiscal and hukou reforms. Despite challenges such as technology containment from the US, China is focused on maintaining economic growth and promoting self-reliance.

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Read 2 more recent news on this topic

The press radar on this topic:

Business - South China Morning Post
1. August 2024 um 00:30

China’s Politburo meeting sends positive vibes to investors after Third Plenum disappoints | South China Morning Post

Politics
Economy
Finance
China's Politburo acknowledged economic headwinds, pledged countercyclical policies including RRR cut, policy rate reduction, more liquidity, increased government bond sales and infrastructure investment to meet 5% growth target, while preparing for potential US tariff hikes after Third Plenum disappointment amid housing crisis and weak consumption.
Politics - South China Morning Post
1. August 2024 um 05:52

Chinese premier calls for ‘tangible, effective, accessible’ policies to aid economy | South China Morning Post

Economy
Politics
Finance
China set 5% annual GDP growth target; Premier Li Qiang, in an executive meeting of China's State Council, calls for 'tangible, effective, accessible' policies; analysts expect expanding fiscal policy, including 300 billion yuan in ultra-long treasury bonds for equipment upgrades and trade-in scheme, to boost consumption; government, per deputy secretary general of the National Development and Reform Commission, to focus on stabilizing market expectations, nurturing future industries, construc..
Asia Times
1. August 2024 um 08:30

Forget the Fed and BOJ; PBOC holds the monetary cards

Politics
Economy
Finance
PBOC Governor Pan Gongsheng holds the key to global monetary policy in 2024, facing challenges like weak domestic demand, falling Caixin manufacturing PMI, China's $10 trillion-plus local government debt, a weakening export machine, and slowing consumer price inflation. While the BOJ hiked rates and hinted at more tightening, the PBOC surprised markets with rate cuts to support China's economy, limited by yuan exchange rate concerns. China's yuan internationalization policy, a top priority for..
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