China’s government will take additional fiscal steps to support a slowing economy, Vice Finance Minister Liao Min said on Friday. Speaking to reporters, Liao emphasized the need to optimize state spending with a stronger focus on investments benefiting households and boosting domestic consumption.
State expenditures will be directed toward accelerating budgeted infrastructure projects for the remainder of the year rather than introducing large new stimulus packages, he added. Liao also stressed the importance of preventing the emergence of new hidden local government debt, describing it as a matter of 'iron discipline.'
The announcement follows a Politburo meeting in July where Chinese leaders pledged to stabilize growth. Earlier this month, the People’s Bank of China (PBOC) reiterated its commitment to maintaining an appropriately accommodative monetary policy and indicated it would take effective measures as needed. The central bank did not signal explicit interest rate reductions.
Liao’s remarks underscore Beijing’s cautious approach to economic stabilization, balancing targeted fiscal support with debt management and structural reforms.
