China has promised to provide more fiscal support as its economy loses speed. The move comes as officials seek to protect growth and increase spending at home.
Vice Finance Minister Liao Min said on Friday that China would bring in more fiscal measures when needed. He said policy would remain stable and that the government would plan its use of public money over a longer period.
The message shows that Beijing is ready to act if economic growth weakens further. Officials are also trying to make better use of money already set aside in the budget.
The new approach is not based on one huge new stimulus plan. Instead, China plans to speed up spending on projects that have already been approved. The focus is also shifting toward people and stronger domestic demand.
That change matters because Chinese consumers have been slow to spend. Weak demand has become one of the main problems facing the economy. A stronger flow of public money could help support jobs, income and household spending.
China’s economy has also faced pressure from a weak property market and lower private investment. Recent data showed that industrial growth and retail sales have slowed. Private firms have also been cautious about making new investments.
The government wants fiscal policy to help fill that gap. Public spending can support roads, rail links, public services and other projects. It can also help create demand for goods and services made by Chinese firms.
Officials have said that fiscal spending should be better aimed at improving people’s lives and boosting consumption. That could mean more support for areas that directly affect households rather than relying only on large building projects.
China has already taken steps to increase spending this year. The government has issued large amounts of special bonds to help fund key projects. It has also used long term government debt to support equipment upgrades and other investment.
The latest signal suggests that Beijing wants these existing measures to have a bigger effect during the rest of the year.
At the same time, officials are trying to keep control of financial risks. Local governments across China carry large amounts of debt. Some have used hidden forms of borrowing to fund projects in the past.
Liao said stopping the illegal build up of new hidden local government debt must remain a strict rule. He also said financial risks in key areas should be reduced in a steady way.
This creates a difficult task for policymakers. They need to spend enough money to support growth, but they also need to avoid creating new debt problems.
China’s central bank has also promised to keep monetary policy supportive. Earlier this month, it said it would use practical steps when needed. However, it did not signal a clear plan for cutting key rates or banks’ reserve needs.
The wider goal is to keep the economy stable while dealing with weaker demand. Beijing wants to maintain growth without relying on a very large new stimulus plan.
The policy shift also shows that officials are watching economic data closely. If spending and demand remain weak, more steps could follow.
For businesses, the promise of faster public spending could offer some support. Construction firms, manufacturers and companies linked to public projects may benefit first.
For households, the key test will be whether the measures lead to better jobs, higher income and stronger spending.
China still has major economic strengths. But weak domestic demand and property problems remain serious challenges. The latest fiscal pledge shows that Beijing is prepared to use public money to keep growth on track.
The success of that plan will depend on how quickly funds reach the real economy and whether people and private firms become more willing to spend and invest.
