China's Leaders Vow to Step Up Policy Support for Economy

FILE PHOTO: A person sits on a bench near Beijing's Central Business District (CBD), China July 14, 2024. REUTERS/Tingshu Wang/File Photo

China will step up policy support for the economy, focusing on boosting consumption to expand domestic demand, the Politburo, the top decision-making body of the ruling Communist Party, was quoted by state media as saying on Tuesday.
Currently, adverse effects stemming from changes in the external environment are increasing, domestic demand is insufficient, and the transition from old growth drivers to new ones remain painful, the Politburo said following a meeting chaired by President Xi Jinping.
"Macro policies should be strengthened persistently and become more forceful," the Politburo added, according to the official Xinhua news agency.
"We need to strengthen counter-cyclical adjustments, implement a proactive fiscal policy and a prudent monetary policy, accelerate the comprehensive implementation of established policy measures, reserve early and timely launch a batch of incremental policy measures,” Reuters quoted it as saying.
China will focus on boosting consumption to expand domestic demand, and the focus of economic policies will shift more towards benefiting people's livelihoods, the Politburo said.
Beijing will also strengthen the employment-prioritized policy and promote jobs for key groups including college graduates, and step up efforts to resolve issues such as food safety and social security, Xinhua said, citing the meeting.
The world's second-largest economy faces multiple challenges ranging from a prolonged property crisis to deflationary pressures as well as weak demand at home and increased hostility towards its export dominance abroad.
The economy grew much slower than expected in the second quarter, with the consumer sector a particular cause for concern amid job market woes and the protracted housing downturn.