China Confident in Achieving Economic Goals

BEIJING (Reuters) – China is “fully confident” of achieving its full-year economic and social development targets, according to Zheng Shanjie, the chairman of the National Development and Reform Commission (NDRC), speaking on Tuesday. He mentioned that some of 2025’s budget would be issued this year to support vital projects.

Economic Stimulus Measures

A package of economic stimulus measures announced by authorities since late September has led to a surge in Chinese shares, reaching two-year highs. This rally extended as markets reopened following a week-long National Day holiday.

Investors and economists anticipate further fiscal policy support to enhance market optimism.

Economic Stability Amidst Pressures

Zheng noted that while China’s economy remains largely stable, it is encountering increasingly complex internal and external challenges. He observed that the downward pressures are rising, with some industries facing fierce competition.

To aid local governments, China plans to allocate 100 billion yuan ($14.12 billion) from next year’s budget and another 100 billion yuan for essential investment projects by the year’s end. Zheng emphasized the need to accelerate fiscal spending and urged all parties to reinforce macroeconomic policies.

The government aims for a growth target of around 5% this year, yet economic indicators reveal diminishing growth momentum since the second quarter.

In late September, China rolled out its most aggressive monetary stimulus since the COVID-19 pandemic, alongside support for the property market, reflecting rising governmental concern over reversing the economic downturn. A vice chairman of the NDRC affirmed that economic growth had remained “generally stable” over the first three quarters.

($1 = 7.0805 Chinese yuan)