China Economic Policy Support Strengthens as Growth Momentum Slows

China economic policy support is set to strengthen as the State Council seeks to sustain growth and achieve the government’s 4.5%-5% target amid signs of weakening momentum.

The cabinet, chaired by Premier Li Qiang, called for more effective implementation of existing measures and faster issuance and deployment of government bonds, according to a state media readout.

Authorities also want major infrastructure projects included in the 2026-2030 Five-Year Plan to begin construction as quickly as possible.

The measures follow a slowdown in economic growth to 4.3% in the second quarter, alongside weaker industrial output, retail sales and investment indicators during early Q3.

The State Council also pledged measures to support investment, consumption, housing and employment.

These include interest subsidies and expanded relending facilities targeting technology, industry, agriculture and smaller businesses as policymakers seek to bolster domestic demand and economic activity.