BUSINESS China confident it will achieve GDP target, despite tariff war

BUSINESS

China confident it will achieve GDP target, despite tariff war

CGTN

02:21, August 16, 2018

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(Photo: CGTN)

China’s state planning authorities pledged on Wednesday to keep debt levels under control as it expressed confidence that the year's growth target will be achieved in spite of the trade war with the US. 

National Development and Reform Commission (NDRC) spokesman Cong Liang told a media briefing that new spending on roads, railways, elderly care and education will not be as heavy as in the past and will aim to meet real demand, reducing the risk of over-capacity.

At the same time, the government is stepping up infrastructure spending and injecting more funds into the banking system, which is lowering borrowing costs. 

The comments by the NDRC spokesman came a day after China released new data showing investment growth has slowed to a record low.

The moves by the agency are an attempt to stabilize business conditions and weather the trade war.

NDRC spokesman Cong Liang told a media briefing that new spending on roads, railways, elderly care and education will not be as heavy as in the past and will aim to meet real demand, reducing the risk of over-capacity.

Authorities are also hoping to attract private investment in such projects to reduce the government’s debt burden, he said, noting that regulators are relaxing restrictions on local governments’ ability to sell special bonds to fund projects.

China’s state planning authorities pledged on Wednesday to keep debt levels under control as it expressed confidence that the year's growth target will be achieved in spite of the trade war with the US. 

National Development and Reform Commission (NDRC) spokesman Cong Liang told a media briefing that new spending on roads, railways, elderly care and education will not be as heavy as in the past and will aim to meet real demand, reducing the risk of over-capacity.

At the same time, the government is stepping up infrastructure spending and injecting more funds into the banking system, which is lowering borrowing costs. 

The comments by the NDRC spokesman came a day after China released new data showing investment growth has slowed to a record low.

The moves by the agency are an attempt to stabilize business conditions and weather the trade war.

NDRC spokesman Cong Liang told a media briefing that new spending on roads, railways, elderly care and education will not be as heavy as in the past and will aim to meet real demand, reducing the risk of over-capacity.

Authorities are also hoping to attract private investment in such projects to reduce the government’s debt burden, he said, noting that regulators are relaxing restrictions on local governments’ ability to sell special bonds to fund projects.

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