Date
14 December 2017
China's economy grew at its slowest pace in 18 months, lagging the official target. Photo: Bloomberg
China's economy grew at its slowest pace in 18 months, lagging the official target. Photo: Bloomberg

China vows targeted measures to bolster growth

Chinese Premier Li Keqiang said the government will use targeted measures to bolster growth if downward pressure continues, China Business News reported Monday.   

China’s economic growth, employment and inflation are all within a proper range but risks and challenges are growing as downward pressure remains relatively strong, Li told a municipal symposium.

The targeted measures, also known as a mini stimulus, include a cut in reserve requirement ratio for rural banks, faster railway and public housing construction and tax breaks for small businesses.

These are in addition to existing programs intended to shore up faltering growth amid economic reform, worsening overcapacity and growing debt. 

The economy grew 7.4 percent in the first quarter, its weakest pace in 18 months, lagging the 7.5 percent official target.

Energy-rich Shanxi and Heilongjiang saw growth fall sharply to 5.5 and 4.1 percent, respectively, during the period compared with 9.5 percent and 9 percent last year.

Heibei’s growth almost halved to 4.2 percent after heavy pollution forced the provincial government to slash industrial capacity.

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