China’s top leaders vow to support the economy and fight disorderly competition
Beijing (Reuters) – China’s top leaders have committed to managing improper competition among companies and provide capability management for key industries in the second half of the year to support an economy facing various risks, the official news agency said.
Chinese leaders say they will curb the price war among producers as they expect to cut new factory capabilities in a long-awaited but challenging counterattack campaign, a move that could pose risks to economic growth.
Xinhua News Agency said on Wednesday that in the second half of the year, China will maintain policy stability while improving flexibility, hoping to stabilize employment, companies, markets and expectations.
It is a summary of the lawsuits on the China Politburo meeting, the highest decision-making body of the ruling Communist Party, whose July gathering sets economic courses for the rest of the year.
“At present, China’s economic performance still faces many risks and challenges,” the agency quoted the Politburo, adding that the authorities will accurately assess the situation and increase awareness of potential risks.
The summary shows that China will continue to adopt a more proactive fiscal policy and a “properly relaxed” monetary policy, but unlike the April meeting, without mentioning the rate cuts or reserve requirements.
Top leaders say the issuance and use of government bonds will be accelerated and capital will be used more effectively.
Xinhua News Agency said China will unleash the potential of domestic demand and take measures to increase consumption.
It will promote technological innovation to drive the development of new quality productivity and accelerate the cultivation of globally competitive emerging pillar industries while curbing disorderly competition among companies.
The abstract says: “Disorder competition among enterprises must be governed by laws and regulations.” “The capacity management of major industries should be improved.”
Analysts believe that stimulating consumer demand remains the key to effectively combating deflation.
(Reported by Beijing News Editorial Office; Edited by Christopher Cushing and Clarence Fernandez)
