The meeting was held at a time when the world’s second-largest economy is reeling from a severe housing market crisis, high local government debt and weak domestic demand. Its exports, one of the few bright spots, face the threat of higher US tariffs with Donald Trump’s return to the White House.
“The adverse impact caused by changes in the external environment has deepened,” state media said after the CEWC was held behind closed doors.
The CEWC’s promises match the tone of one of the most moderate statements by Communist Party leaders in more than a decade, which was released Monday after a meeting of the Politburo, a top decision-making body.
The Politburo noted that Beijing is prepared to deploy the necessary stimulus to counter the impact of any tariff hikes.
“It is necessary to apply a more active fiscal policy, raise the fiscal deficit ratio, increase the issuance of very long-term special Treasury bonds, and increase the issuance and use of special local government bonds,” the CEWC summary stated.
Leaders also promised to reduce bank reserve requirements and cut interest rates “in a timely manner.”
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