Premier calls for seizing opportunity to consolidate foundation of recovery

China will add follow-up measures to its policy package for stabilizing the economy as part of intensified efforts to consolidate the foundation of economic recovery and growth, and task forces will be sent to localities to supervise and assist work on this front to promote policy implementation at a faster pace, the State Council's executive meeting chaired by Premier Li Keqiang decided on Wednesday.

The economy has continued the momentum toward recovery and growth that was seen in June, but marginal fluctuations remain and the foundation of economic recovery is not yet solid, according to the meeting.

It is imperative to efficiently coordinate COVID-19 response with economic and social development, to uphold development as the basis of and key to solving all problems in China and to seize the current critical moment.

Swift and decisive steps will be taken, the appropriate policy scale maintained, and the policy instruments available better harnessed, to strengthen the foundation of economic recovery and growth without resorting to massive stimulus or compromising longer-term interests.

In addition to delivering the policy package for stabilizing the economy, 19 follow-up policies will be rolled out to achieve greater synergy. The goal of the policy mix is to promote economic stabilization, keep major economic indicators within the proper range and work for the best possible results.

"Given the current circumstances, we must seize the window of opportunity and maintain the appropriate policy scale. The funds available should be put to the best use. This will expand effective investment, boost consumption and help to keep economic activity on a steady course," Li said.

On the basis of channeling the 300 billion yuan ($43.7 billion) of policy-backed and development-oriented financial instruments to specific projects, the quota of such instruments will be increased by another 300-plus billion yuan.

The balance of the special-purpose bond quota worth over 500 billion yuan should be well utilized in accordance with law and issued by the end of October. This will help to boost effective investment, spur consumption and address the problem of insufficient loan demand.

The effect of the loan prime rate reform will continue to be harnessed to lower the costs of corporate financing and consumer loans.

A set of infrastructure projects with mature conditions will be approved and launched. Measures will be introduced to support the development and investment of private businesses and advance sound and sustained development of the platform economy.

Local governments will be allowed to adopt city-specific policies, including flexible credit loans to meet people's basic housing needs and the need for improved housing conditions. The border entry and exit of business personnel will be facilitated.

Payments of government levied charges will be deferred by one quarter. Localities will be encouraged to set up risk compensation funds for loans extended to micro, small and medium-sized enterprises and self-employed households.

Measures will be taken to support electricity producers under central management in issuing 200 billion yuan of special bonds for energy supply. On top of the agricultural supplies subsidies delivered this year totaling 30 billion yuan, an additional 10 billion yuan will be distributed to the sector. Sustained efforts will be made to keep logistics open and smooth.

"We should expedite the delivery of policy measures. The central government will provide facilitation, and local governments will be tasked with policy implementation," Li said.

The State Council will send task forces without delay to supervise and assist the work of stabilizing overall economic performance. These teams, led by leading officials of bodies under the State Council, will work jointly in several provincial-level regions of fairly large economic size.