Facing a struggling economy marked by weak consumption and deflation, Chinese Premier Li Qiang pledged on Monday that Beijing will take all necessary steps to stimulate domestic spending and support growth, Bloomberg reports.
Li made the commitment during a meeting with heads of ten major international economic organizations, including the IMF and World Bank, according to the official Xinhua News Agency.
China’s economic slowdown has had global repercussions, impacting international demand for Chinese imports. The situation is expected to worsen with the return of President-elect Donald Trump to the White House next month. Trump’s promise to immediately impose a 10% tariff on all Chinese exports threatens a key element of China’s economy.
Vice Finance Minister Liao Min reported that international organizations expressed concerns about the potential negative impact of economic decoupling on the global economy. While acknowledging the slowdown, these organizations also believe that China has significant room to implement effective macroeconomic policies to address the challenges.
Signaling a more aggressive approach, China’s top leaders have indicated bolder economic support measures for next year. The Politburo, led by President Xi Jinping, announced a “moderately loose” monetary policy and pledged a more proactive fiscal policy. The Politburo also committed to boosting consumption, stabilizing property and stock markets, and, for the first time, promised “extraordinary” countercyclical policy adjustments – suggesting the use of unconventional economic stimulus tools.
