China Bolsters Policies to Achieve 5% Growth Target
Beijing, China — China is strengthening policy coordination in finance and consumption to achieve its economic growth target of around 5 percent, a top official announced at a recent press conference during the National People’s Congress.
Despite global uncertainties and challenges in domestic demand, Zheng Shanjie, head of the National Development and Reform Commission, expressed confidence in reaching the nation’s growth goals. He cited a solid foundation and strong support for the economy’s resilience and high-quality development.
Boosting Consumption and Services
Commerce Minister Wang Wentao emphasized that consumption remains the main driving force for China’s economic growth. He highlighted the significant progress in the services sector, noting that total retail sales of consumer goods reached 48 trillion yuan (about $6.8 trillion), up by 3.5 percent year on year. Service retail sales saw an even stronger growth of 6.2 percent.
Wang pointed to vibrant consumer activity, especially during the Spring Festival. He mentioned how events like the Asian Winter Games fueled the “ice-and-snow economy,” while popular films boosted movie attendance across the nation.
To further stimulate consumption, China has expanded its trade-in program across multiple sectors, encouraging consumers to replace outdated goods with newer, more advanced options. This initiative has spurred significant sales in automobiles and home appliances, surpassing 1.3 trillion yuan.
Reducing Financial Pressure on Consumers
Finance Minister Lan Fo’an announced new interest subsidy policies on certain loans to ease financial burdens on individuals and businesses. Fiscal interest subsidies will be provided for personal consumer loans in key sectors and business loans in industries closely related to daily life, including catering, hospitality, healthcare, and domestic services. These measures aim to reduce financial pressure on consumers and lower financing costs for businesses.
Flexible Monetary Policies
Pan Gongsheng, governor of the People’s Bank of China, stated that China will adjust reserve requirement ratios (RRRs) and interest rates when appropriate, in line with economic conditions and financial market performance. With the average RRR for China’s financial institutions currently at 6.6 percent, there is room for further reductions to support economic growth.
Finance Minister Lan added that the government has sufficient policy tools and space to address potential internal and external uncertainties.
Supporting Technological Innovation
China is placing a strong emphasis on technological innovation, with significant advancements in fields like artificial intelligence (AI), quantum technology, and cloud computing. Commerce Minister Wang highlighted the rise of technology companies that are showcasing China’s innovation capabilities to the world.
Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), noted that AI has been a focal point during this year’s discussions. The CSRC is committed to supporting technological innovation by reforming capital markets and facilitating the listing of high-quality tech companies. Last year, over 90 percent of the newly listed companies on the Science and Technology Innovation Board (STAR Market), ChiNext Market, and Beijing Stock Exchange were high-tech enterprises.
Wu emphasized that China will accelerate the development of support mechanisms to promote technological growth and innovation.
