Key Government Agencies Outline Four-Pronged Stability Strategy to Counter Global Uncertainties
BEIJING – In a comprehensive response to mounting global economic uncertainties, China’s top economic policymakers have unveiled a coordinated strategy focusing on four stabilization priorities: employment, enterprises, markets, and expectations. The approach, discussed during the 18th China Economic Roundtable hosted by Xinhua News Agency on June 5, represents Beijing’s latest effort to maintain economic momentum through targeted policy interventions.
Policy Framework Takes Shape
The strategic direction emerged from the April 25 Politburo meeting analysis of current economic conditions, which called for “using the certainty of high-quality development to counter external uncertainties.” Since then, government agencies have accelerated implementation of stabilization measures that are already showing tangible results across key economic indicators.
Ding Lin, Deputy Director-General of the Comprehensive Department at the National Development and Reform Commission (NDRC), highlighted several positive trends during the roundtable discussion:
Economic Resilience
Industrial production, service sector growth, domestic demand, and exports all maintained robust expansion despite complex international conditions. High-tech manufacturing output grew 10% year-on-year in April, outpacing overall industrial growth by nearly 4 percentage points.
Domestic Demand Potential
Retail sales of home appliances and communication equipment exceeded 20% growth in the first four months, while equipment investment surged 18.2%, demonstrating the impact of policies targeting both traditional and new infrastructure projects.
Innovation Vitality
Emerging sectors including new energy vehicles, AI large language models, and humanoid robotics are accelerating industrial upgrading, supported by targeted government initiatives.
Social Safeguards
Employment stability has been maintained through focused support for key demographic groups, with urban job creation progressing ahead of schedule and unemployment averaging 5.2% – below the control target.
Employment Stabilization Measures
Chen Yongjia, Deputy Director-General of the Employment Promotion Department at the Ministry of Human Resources and Social Security, detailed a multi-pronged approach to labor market stability:
Job Creation
Authorities are expanding positions across critical sectors, urban-rural interface areas, and SMEs through targeted incentives. First-quarter data shows 35.2 billion yuan in stabilization funds disbursed alongside 238 billion yuan in employment subsidies.
Skills Development
The “Skills Illuminate Futures” training initiative aims to subsidize vocational training for over 10 million workers annually through 2026, with specialized programs for elderly care, domestic services, and long-term nursing sectors.
Vulnerable Groups
New youth employment policies (17 measures) and rural migrant worker support programs (“two stabilities, one prevention”) form the core of social safety net protections.
Financial Sector Support
Ding Zhijie, Director of the Financial Research Institute at the People’s Bank of China (PBOC), outlined monetary policy adjustments designed to ease corporate burdens:
Liquidity Measures
The recent 50-basis-point reserve requirement ratio cut, combined with 10-basis-point policy rate reduction and 25-basis-point structural tool rate decrease, has significantly improved funding access.
Credit Expansion
Outstanding inclusive loans to micro and small enterprises reached 34.3 trillion yuan by April-end, growing 11.9% year-on-year. Financing costs continue declining, with new corporate loan rates averaging 3.2% in April – down 50 basis points annually.
Domestic Demand Stimulus
The NDRC’s Ding Lin emphasized China’s vast domestic market potential, with several consumption-boosting initiatives underway:
Household Spending
Policies include streamlined appliance replacement subsidies, expanded elderly care services, automotive consumption incentives, and removal of irrational consumption restrictions. New formats like debut economy and winter sports tourism receive particular attention.
Investment Acceleration
With 800 billion yuan in ultra-long special treasury bonds and 735 billion yuan in central budget investment allocated, officials aim to finalize 2025 project lists by June-end. A new policy financial instrument will address capital shortfalls for key initiatives.
Private Participation
Quality projects in transportation, energy, water conservancy, and new infrastructure are being actively marketed to private investors, while urban renewal programs upgrade consumption-supporting infrastructure.
Policy Innovation and Coordination
PBOC’s Ding Zhijie highlighted three dimensions of recent monetary innovations:
Scale Expansion
Sci-tech innovation relending quotas increased from 500 billion to 800 billion yuan, complemented by a new 500 billion yuan facility for service consumption and elderly care sectors.
Cost Reduction
Relending rates were cut to 1.5%, while financial institutions are being guided to issue specialized innovation bonds.
Implementation Focus
Multi-level policy briefings ensure financial institutions understand and execute these measures effectively, though officials acknowledge full impact will require time.
Forward-Looking Measures
With external uncertainties persisting, agencies are preparing additional contingency tools:
Employment Services
Human Resources is building “15-minute employment service circles,” developing precision assistance models, and enhancing digital platforms to match workers with opportunities.
Financial Support
PBOC will optimize startup loan guarantees, simplifying approval processes while maintaining favorable interest and guarantee rates.
Policy Synergy
NDRC is strengthening cross-agency coordination through macro-policy consistency evaluations, ensuring measures are timed and calibrated for maximum collective impact.
As Ding Lin concluded: “We will maintain open-ended policy research and preparation, continuously improving our toolkit to ensure all measures work synergistically – enhancing the foresight, targeting, and effectiveness of macroeconomic regulation.” This comprehensive, multi-agency approach demonstrates China’s determination to stabilize growth through coordinated high-quality development strategies amid global volatility.
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