China’s Cabinet Unveils New Policy Measures to Boost Growth Amid Economic Challenges
China's cabinet pledges stronger policy support to meet growth target as factory activity rebounds and economic strains persist.
POLICY WIRE — Beijing, China — China’s State Council announced renewed commitments to bolster economic growth through targeted policy measures, signaling increased urgency to address ongoing challenges. The move comes as factory activity showed signs of recovery in September after two months of contraction.
A Reuters poll of 29 economists suggested that the official manufacturing purchasing managers’ index (PMI) likely rose to 50.1 in September, marking a return to expansion from 49.8 in August. This follows disruptions caused by heavy rain and typhoons in some regions during the previous month. Meanwhile, the private RatingDog PMI is expected to edge up to 51.6 from 51.5, reflecting continued resilience in the manufacturing sector.
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The government emphasized its focus on stabilizing the property market, promoting employment, and increasing household income, according to state media reports. Analysts noted that the approach involves incremental fiscal and credit measures rather than broad stimulus. Goldman Sachs analysts expect additional local government bond quotas of 500 billion yuan or more, but no interest rate cuts are anticipated for the rest of 2026 due to narrow bank margins. Despite domestic weaknesses, strong exports and recent tariff reductions with the U.S. have provided some relief to the economy.
Reporting by Policy-Wire (PW)
