Overall Economic Stability:
The Chairman of China’s state planning agency has stated that the economy is largely stable, although it is facing increasingly complex challenges both internally and externally. There is growing downward pressure on the economy, but market expectations have improved following the introduction of new policies. He expressed full confidence in achieving the economic and social development targets for the year.
Future Economic Development Plans:
Looking ahead to 2024 and 2025, the Chairman emphasized a commitment to promoting sustained and stable economic growth. This includes efforts to expand domestic demand, prioritize consumer spending, and boost capital markets to encourage economic recovery.
Policy Package Overview:
The Chairman outlined plans for a policy package aimed at economic support, which includes increasing counter-cyclical adjustments and enhancing policy coordination. Fiscal spending will be accelerated to bolster the economy, and state banks will receive support to strengthen their core capital. Key reforms from the recent Party Plenary will be implemented, and efforts to attract foreign investment will be stepped up. Additionally, measures to support births and the issuance of special bonds by local governments will be prioritized, with plans to continue issuing special treasury bonds next year.
Investment and Market Stabilization Initiatives:
The government plans to allocate 200 billion yuan in advance budget spending for investment projects starting next year. Financial institutions will be guided to provide more support for small businesses, and efforts will be made to stabilize the property market. The government will also work to ensure that long-term capital is directed toward capital markets while protecting the interests of small and medium-sized investors. It is noted that bank loans cannot be used for investment in China’s stock market.
Local Government Bond Issuance and Labor Market Plans:
The Vice Chairman of the state planner announced that local governments aim to complete the issuance of special bonds by the end of October. Regarding employment, he stated that economic development will be leveraged to create jobs, with various measures in place to stimulate the private sector.
Energy Supply Assurance:
The Vice Chairman also assured that there will be a reliable energy supply during the winter months.
Commerce Ministry’s Announcements
Provisional Antidumping Measures:
China’s Commerce Ministry has announced provisional antidumping measures on brandy imports from the European Union. Starting October 11, importers will be required to provide security deposits to Chinese customs.
Tariff Considerations and Investigations:
The Commerce Ministry is considering measures such as increasing tariffs on imported large-displacement fuel vehicles. Currently, investigations are being conducted regarding EU pork and dairy imports, with a commitment to protecting the rights of all stakeholders and ensuring a fair ruling based on the investigation outcomes. China will take necessary actions to safeguard the legitimate rights and interests of its industries and businesses.
