Premier Li vows to step up policy support for economy, state planner pledged to speed up infrastructure
Premier Li vows to step up policy support for economy, state planner pledged to speed up infrastructure

Premier Li vows to step up policy support for economy, state planner pledged to speed up infrastructure

 

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China will step up macro-economic policy support for the economy, Premier Li Keqiang said at a video meeting on Tuesday, according to state media, after data showed that the country’s economic recovery unexpectedly slowed in July.

China’s economy continued to recover in July, but there were “small fluctuations”, Li said during a video meeting with senior officials from six major provinces – Guangdong, Jiangsu, Zhejiang, Shandong, Henan and Sichuan.

“A sense of urgency must be strengthened to consolidate the foundation for economic recovery.”

Authorities will thoroughly implement a package of policy measures unveiled in May, and will increase the intensity of macro-economic policies to keep economic operations within an reasonable range, Li said, adding that the government will take more steps to boost consumption and expand effective investment.

Earlier on the day, officials from the state planner said that China will boost economic demand in a strong, reasonable and moderate manner and accelerate infrastructure construction in the third quarter of the year.

“China will optimize policies for sustained economic recovery, macro policies should expand demand actively in a strong, reasonable and moderate manner,” Yuan Da, a spokesperson at the National Development and Reform Commission (NDRC). The country will accelerate the use of special local government bonds and new credit granted by policy banks, Yuan added.

The NDRC has adopted multiple measures to push construction of major projects, including strengthening projects’ early-stage work and increasing support regarding capital issuance, land usage, process for environmental assessment etc, Luo said.

So far, the 102 major projects are “proceeding in an orderly manner” and making smooth progress overall, Luo said. This year, China has moved to speed up the 102 major projects outlined in the development plan for the period of 2021-25, which cover a number of key areas such as major national scientific infrastructure, modern rural construction, new-generation artificial intelligence, quantum information and modern airports, etc.

By the end of July, the quota of 3.45 trillion yuan of local government special-purpose bonds had almost been fully issued, Luo said, adding that the NDRC has instructed local governments to submit the third tranche of projects for the funding from the bonds to central government departments for review and approval.