China to further ramp up policy support to boost consumption, stabilize growth

China will continue to ramp up policy support to boost consumption and stabilize economic growth, officials and experts said in Beijing on Thursday.

Amid a more complex and challenging external environment, China's economy operated on a generally stable trajectory with policymakers implementing more proactive macroeconomic policies and accelerating measures to stabilize employment and growth, according to the National Development and Reform Commission.

Both the World Bank and the Organisation for Economic Co-operation and Development (OECD) have recently revised down their global growth forecasts by 0.4 and 0.2 percentage points, respectively, while maintaining largely stable projections for China's economic growth.

"With new measures being rolled out successively, we have the confidence and capability to minimize uncertainties and adverse impacts from external shocks, thereby promoting sustained and sound economic development," said Li Chao, deputy director of the policy research office of the NDRC.

"The NDRC will step up whole-process management of equipment renewal projects, accelerate project construction, enhance fund oversight and roll out discounted-interest loan policy to further reduce financing costs for business entities," said Li.

When it comes to the consumer goods trade-in program, Li said that the third batch of subsidies will be disbursed in July.

The NDRC will coordinate with relevant agencies to formulate sector-specific monthly and weekly implementation plans for central government subsidies, ensuring orderly year-round execution of the consumer goods trade-in program, Li noted.

"As a key policy instrument, the timely disbursement and effective deployment of central government subsidies in the market demonstrate policy stability and sustainability," said Zhou Mi, a researcher at the Chinese Academy of International Trade and Economic Cooperation.

Regarding the development of related industries, Zhou said that reinforced policy support will deliver more effective, sustainable and market-aligned assistance to the production and supply ecosystems for consumer goods.

"Enhanced optimization of equipment renewal projects will help lower financing costs for relevant companies, advance technological upgrades and high-end equipment adoption among enterprises, boosting innovation in emerging sectors," said Wang Peng, a researcher at the Beijing Academy of Social Sciences.

"Driven by the dual engines of investment and consumption, the measures will propel industrial upgrading and green transition, optimizing China's economic structure," Wang said.