China’s ruling Communist Party plans to implement a range of policies to help industries and small companies hit by Covid-19 and offset risks stemming from the war in Ukraine, state media said on Friday.
Financial markets have been hit hard over the past two weeks on fears that lockdowns in China would cause severe damage to its economy. China’s two main cities, Beijing and Shanghai, face uncertain weeks ahead as health authorities battle to rein in the pandemic.
“The Covid-19 and Ukraine crises have led to increased risks and challenges,” the party’s Politburo – its peak decision-making body – was quoted as saying.
“The complexity, severity and uncertainty of China’s economic development environment have increased,” it added.
“Stabilising growth, employment and prices are facing new challenges. It is very important to do a good job in economic work and effectively protect and improve people’s livelihood.”
However, the Politburo said authorities will continue to implement the controversial ‘dynamic zero’ Covid policy to control outbreaks, while minimising impacts on the economy.
China will strive to keep economic growth within a reasonable range and achieve social and economic targets for 2022, the Politburo said.
“We should accelerate the implementation of policies, implement tax rebates, tax and fee cuts and other policies, and make good use of all kinds of monetary policy tools,” it said.
It will also back healthy development of the property market, and ensure stable operations of capital markets, while guarding against systemic risks.
- Reuters, with additional editing by George Russell