China has announced several measures recently to boost the economy and made a number of pledges to improve the business environment as concerns about the growth outlook continue to mount.
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(Bloomberg) — China has announced several measures recently to boost the economy and made a number of pledges to improve the business environment as concerns about the growth outlook continue to mount.
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Statements over the past month provide broad assurances to boost consumer spending on household goods and cars and encourage private companies, with little specific detail. Investors have been skeptical of the pledges so far, and are looking for more concrete proposals and direct stimulus policies. More guidance on that will likely come at an upcoming meeting of the Communist Party’s Politburo.
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Here’s a list of Beijing’s recent announcements on economic support.
July 21: Construction
The State Council, chaired by Premier Li Qiang, ramped up support for property construction by saying the government will boost the renovation of so-called urban villages. It will also seek more private capital in the projects to expand domestic demand and push forward development of cities.
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Read More: China Vows Urban Redevelopment Support to Boost Construction
July 21: Cars
The National Development and Reform Commission, the main economic planning body, released a 10-step plan to increase car purchases, particularly for new-energy vehicles, including lower costs for electric-vehicle charging and extending tax breaks. In June, the Ministry of Commerce launched a six-month campaign to boost car purchases and drive electric vehicle adoption in rural areas.
Read More: China Introduces More Measures to Increase Car Consumption
July 20: Currency
The People’s Bank of China adjusted some rules to allow companies to borrow more from overseas, opening the door for more foreign capital inflows. It also set a stronger daily fixing for the currency.
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Read more: China Ramps Up Yuan Support With Fixing, Borrowing Measure Tweak
July 19: Private Businesses
The Communist Party and government issued a rare joint pledge to improve conditions for private businesses, outlining 31 measures that included vows to treat private companies the same as state-owned enterprises, consult more with entrepreneurs on drafting policies, and cut market entry barriers for firms.
Read More: China Vows to Boost Private Economy, Protect Businesses
July 18: Household Goods
Thirteen government departments outlined a plan to boost household spending on everything from electric appliances to furniture. Local authorities are encouraged to help residents refurbish their homes, and people should get better access to credit to buy household products, according to the measures announced.
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Read More: China’s New Consumption Plan May Do Little to Boost Growth
July 13: Tech
The top internet regulator released 24 guidelines for ChatGPT-style services, loosening some restrictions it proposed several months previously.
Financial regulators also wrapped up an almost two-year regulatory crackdown of the sector with fines of more than $1 billion on tech giants Ant Group Co. and Tencent Holdings Ltd.
Read More: China Takes Friendlier Approach to AI in Finalized Guidelines
July 10: Property
Financial regulators extended loan relief for developers to ensure the delivery of homes under construction. The PBOC has also hinted that lenders will be able to renegotiate mortgage contracts or extend new loans to lower the financing costs on home loans. Regulators are also considering easing home buying restrictions in the nation’s biggest cities, potentially removing a hurdle that has curbed demand in Beijing and Shanghai for years, Bloomberg reported in July.
Read More: China Signals More Economic Aid After Property Debt Relief
June 13: Interest Rates
The PBOC cut its main policy interest rates in a surprise move, providing monetary stimulus to the economy. The move came ahead of data showing a slump in real estate, a worrying decline in private sector investment and record joblessness among young people.
Read More: China’s Weakening Economy Puts Focus on Stimulus After Rate Cut
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