China Considers New Fiscal Support as GDP Growth Slips

The Government of China is considering new fiscal support policies, including financing assistance and loan subsidies, to stabilize domestic businesses and consumers. This move follows second-quarter GDP growth of 4.3%, which fell short of the national annual target of 4.5%-5%.

Vice Finance Minister Liao Min announced that revised policies to expand interest rate subsidies for small and micro businesses, as well as consumers, took effect on August 1. These measures respond to July data that revealed an unexpected softening in investment, consumption, and industrial output.

During the first seven months of the year, the government's fiscal package supported more than 20 trillion yuan in new lending. To sustain this spending intensity, the government plans to utilize a remaining 2 trillion-yuan bond quota for the second half of the year. Liao Min stated that the administration aims to establish a more balanced fiscal system through 2030.