China pledges timely fiscal support to bolster growth

China has pledged timely fiscal support to bolster its slowing economy, according to Vice Finance Minister Liao Min. Despite strong exports, the domestic economy is experiencing sluggish growth. Speaking at a press conference, Liao emphasized that the government will maintain the continuity and stability of macroeconomic policies while planning and allocating fiscal resources over a longer time frame. He stressed that fiscal spending should be optimized with a focus on investing in people and boosting domestic consumption.

At the Politburo meeting in July, Chinese leaders agreed to accelerate fiscal spending on already-budgeted infrastructure projects for the remainder of the year, rather than implementing major new stimulus measures. Earlier this month, the central bank signaled its intention to maintain an appropriately loose monetary stance and deploy practical measures as needed, without explicitly cutting policy rates or adjusting the banks' reserve-requirement ratio.

Liao outlined several steps China will take to deepen fiscal and tax reforms, improve budget management, and build a clearer framework for central-local fiscal relations. These measures aim to define responsibilities more clearly and promote more balanced regional development. He stressed that preventing the illegal accumulation of hidden local government debt must remain a strict discipline, while fiscal risks in key areas should be steadily reduced.