(Bloomberg) -- Chinese Premier Li Qiang pledged Beijing will do everything possible to boost domestic consumption in an effort to support the country’s economic growth.
China will strengthen countercyclical measures and step up implementation of macroeconomic policies to shore up the economy, Li said Monday at a meeting in Beijing with the heads of 10 international economic organizations, including the International Monetary Fund and the World Bank, the official Xinhua News Agency reported.
The Chinese economy has struggled this year with weak consumption and deflation, which has flowed through to the rest of the world because of the impact on China’s demand for imports. The return of President-elect Donald Trump to the White House next month is likely to worsen China’s prospects, after he promised to immediately impose a 10% tariff on all Chinese exports, threatening what has been one of the economy’s bright spots.
Liao Min, China’s vice finance minister, told a briefing on Monday that the heads of the international organizations expressed concern that decoupling would damage the global economy. Although the attendees acknowledged that China’s economy has slowed, they also believe there’s plenty of room for macroeconomic policies to address any worries, he said.
China’s top leaders have signaled bolder economic support next year, using their most direct language on stimulus in years. The 24-man Politburo, led by President Xi Jinping, said on Monday it will embrace a “moderately loose” strategy for monetary policy next year while vowing to be “more proactive” with fiscal policy.
The Politburo also pledged to boost consumption, stabilize property and stock markets, and for the first time promised “extraordinary” countercyclical policy adjustments — Communist Party speak for more uncommon tools to boost the economy.
The decision-making body’s December conclave sets the agenda for the larger Central Economic Work Conference that crafts priorities for the following year, such as the annual growth goal. That meeting is set to begin on Wednesday, Bloomberg News reported last week, and its readout could give further clues of China’s policy plans.
--With assistance from Lucille Liu, Foster Wong and Jing Zhao.
©2024 Bloomberg L.P.