China will study and roll out new policies in a timely manner, he said at a panel alongside and other officials including Zheng Shanjie, chairman of the National Financial Regulatory Administration, China’s top economic-planning agency.
The government on Wednesday said it will aim to expand China’s economy by about 5% for 2025, maintaining the same target for the third straight year. Policymakers are expected to step up stimulus to achieve it, as the median forecast of 74 economists surveyed by Bloomberg is for growth to reach only 4.5% this year.
“We can overcome and resolve the difficulties and problems,” Zheng said. “We have the courage to face squarely the risks and challenges and have the foundation to resolve the problems.”
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US tariffs are threatening to stifle the export engine at the core of the Chinese economy, while domestic demand remains sluggish in the face of a property slump and grim job market.
While President Xi Jinping has signaled he wants to transform China’s growth model to make it reliant on consumption rather than investment, details remained scarce in the government’s annual work report released on Wednesday.
Zheng added the government will “soon” publish the action plan of a special programme to boost consumption. A state fund will be set up to guide investment in start-ups, he said, as the country doubles down on promoting technological innovation.
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The authorities will push inefficient capacity to exit the market, Zheng said, a move apparently aimed at addressing intense competition that’s weighing on prices. They will also accelerate the repayment of arrears owed to companies, he added.
Chart: Bloomberg
