China’s Politburo pledges policy support, spending to counteract sluggish growth
The high-level decision-making body also set October for the fifth Central Committee plenum, which will set the stage for next year’s party congress
Beijing has pledged to step up macro policy support and enhance the resilience of capital markets for the remainder of the year, sending signals to stablise growth amid a recent slowdown in economic activity and rising volatility in global markets.
After a meeting of the Communist Party’s 21-member Politburo – a major decision-making body led by President Xi Jinping – that ended on Thursday, the party’s upper echelon vowed to accelerate the pace of fiscal spending and speed up the transition from old to new growth drivers.
“[We need to] fully leverage the effectiveness of existing policies and roll out practical and effective incremental measures in a timely manner,” the Politburo said, according to a statement published by state news agency Xinhua.
Amid growing concerns from Western politicians over China’s widening trade surplus, the leadership also urged the country to “expand the scope for mutually beneficial international economic and trade cooperation” and “promote more balanced trade development.”
The Politburo also said the fifth plenary session of the party’s powerful Central Committee would be held in October. This session carries particular importance, as it comes a year before the party’s next national congress, when a major leadership reshuffle is expected and Xi could be elected to a fourth term as general secretary.
Analysts said the meeting sent a more supportive signal to stabilise growth as the country’s economy faced “challenges and difficulties,” but stopped short of suggesting a large-scale stimulus package, instead pointing to more targeted measures.