“From a holistic approach, we have advantage in our system, potential in our market, and vitality in our businesses,” Zheng Shanjie told reporters in a press conference in Beijing on the sidelines of the ongoing “Two Sessions”.
“And most importantly, we have the courage to face up to these risks and challenges and confidence to address these issues. It is fair to say that the realisation of this year’s growth target is well supported.”
Zheng said there’s uncertainty in the external environment and problems such as insufficient domestic demand, but believes they can be overcome.
He said Beijing will launch major projects in railways, nuclear power and other infrastructure to attract private investment.
The governor of the People’s Bank of China, Pan Gongsheng, said authorities will cut interest rates and the reserve requirement ratios for financial institutions at an appropriate time.
“We will continue to keep abreast with domestic and external economic and financial situations and the financial market operation, and make reasonable cuts to the [reserve requirement ratio] and interest rate at a proper time,” he told reporters.
Pan also said the central bank will roll out more supportive monetary policies and prevent the risk of its exchange rate overshooting.
He added that officials will expand a special relending facility from 500 billion to 800 billion yuan to support tech industries.
Finance Minister Lan Fo’an said there is ample room for fiscal policies to respond to domestic and global challenges.
He promised to further expand fiscal spending this year.
“We need to make full use of the policy space and draft more incremental policy focusing on livelihood, consumption and future growth drivers, and ensure policy consistencies so as to carry out stronger and more precise policy to benefit all,” Lan said.
