Image: Reuters Berita 24 English - China will act decisively to boost economic support and implement more policy measures, but it will refr...
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| Image: Reuters |
Berita 24 English - China will act decisively to boost economic support and implement more policy measures, but it will refrain from issuing excessive money, according to state media.
China's economy showed signs of recovery in May following a dip in April, as industrial production unexpectedly increased, but consumption remained weak, highlighting policymakers' dilemma.
After a regular meeting, the cabinet was quoted as saying that it would grasp the chance to "decisively boost the vigour (of policy) and roll out all policy measures that are essential to stabilise the economy."
However, such attempts should not result in excessive money issuance or a "future overdraft," according to the report.
Although analysts estimate the stated GDP target of approximately 5.5 percent for this year will be difficult to attain without abandoning the zero-COVID approach, the cabinet recently adopted a broad package of economic stimulus measures.
China's cabinet announced that it will increase support for private investment, which accounts for more than half of all investment, by selecting a batch of important infrastructure projects to attract private investors.
The government would give financing guarantees for qualifying projects involving private investors, while financial institutions should promote private investment by rolling over loans, according to the report.
According to official data, China's private fixed-asset investment increased 4.1 percent from a year ago in January-May, trailing a 6.2 percent increase in overall fixed-asset investment.
According to state media, the cabinet also reaffirmed its support for the platform economy's "healthy development."
