China's State Council executive meeting addresses macro policies, investment
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A view shows the urban landscape of Beijing, China./ VCG
Chinese Premier Li Qiang on Monday chaired a State Council executive meeting to discuss work related to strengthening and improving the effectiveness of macro policies and promoting effective investment.
In response to emerging challenges in the economy's operation, efforts should be made to intensify counter-cyclical adjustment of macro policies and promote innovation-driven, high-quality and sound economic development, the meeting noted, stressing that China will strive to achieve its annual economic and social development goals.
The country has targeted 2026 growth at 4.5% to 5% and will strive for better results in practice. In the first half of 2026, the country's gross domestic product grew 4.7%.
The meeting said that the issuance and utilization of various types of bonds will be accelerated, and major projects as specified in China's 15th Five-Year Plan and the "six networks" initiative, which covers water networks, new-type power grids, computing power networks, next-generation communication networks, urban underground pipeline networks and logistics networks, will be expedited in terms of project commencement.
The meeting has urged efforts to advance the renovation and upgrading of aging and dilapidated reservoirs and grain depots, and implement policies designed to expand investment and boost consumption.
According to the meeting, efforts will be made to optimize fiscal expenditure, adjust monetary policy tools in a timely manner, and increase relending support for scientific and technological innovation and technological transformation, agriculture and small businesses.
Meanwhile, the government will examine and roll out policies and measures aimed at stabilizing the real estate market and promoting employment and income growth, according to the meeting.
"To make macro policies more effective, the key is to coordinate existing and incremental policies," said Zhang Linshan, a researcher at the Chinese Academy of Macroeconomic Research under the National Development and Reform Commission (NDRC). He said the meeting's key measures address immediate needs while taking a long-term view, aiming to deliver a coordinated policy package and create a combined effect from existing and incremental policies.
Zhang Lin, executive vice president of Far East Credit Research Institute, said the third-quarter meeting of the central bank's Monetary Policy Committee recently stressed the need to "step up counter-cyclical adjustments," dropping the reference to "cross-cyclical" adjustments used in its second-quarter meeting. The State Council executive meeting also called for the "comprehensive use and timely adjustment of monetary policy tools, "sending a clear signal that monetary policy is likely to take the lead in macroeconomic policy support.
Xiao Hongwei, director of the Policy Simulation Laboratory at the Economic Forecasting Department of the National Information Center, said the State Council executive meeting came at a critical stage as China enters the final stretch of the year's economic and social development goals. He said the meeting sent a clear signal of stronger counter-cyclical adjustments, efforts to stabilize market expectations and measures to strengthen the foundations for future growth.
