(Oct 1): China is mulling additional fiscal policies to reach its growth target for 2026, according to the country’s finance minister, as the world’s No 2 economy contends with a slowdown. 

In the next few months, the Finance Ministry must “ensure the effective implementation of existing policies, and study and formulate new, highly targeted policies” to meet economic goals, Finance Minister Lan Foan wrote in an article published on Thursday on the ministry’s website. 

To boost the country’s weak demand, the authorities must “expand the scope of interest subsidies, onboard more implementing agencies, and moderately raise funding limits to further unlock consumption potential and catalyse private investment”, Lan wrote. Additional policies such as deploying unused local government bond quotas from previous years could also be rolled out to strengthen budgets and support investment. 

Lan’s pledge came as government agencies earlier this week introduced a plan to restore momentum to the flailing economy, including the biggest stimulus effort since 2024. 

Policymakers want to stabilise the economy without resorting to a broad fiscal expansion. Economic indicators have suggested a further loss of momentum in the wake of a disappointing second quarter, demonstrating the underlying demand weakness. 

In a speech on Wednesday, Chinese President Xi Jinping urged efforts to meet full-year targets even as he noted the economy has proven resilient.

Uploaded by Tham Yek Lee