China ensures to reach its targeted economic growth in the second half of the year. The country's state planner said that they are securing their plan to achieve its full-year growth.
China and the U.S. have been imposing tariffs on each other's trade without signs that one will compromise. According to Cong from NDRC, trade friction has limited impact on China's economy and the high tariffs in their goods are controllable.
The planner pledged on Wednesday that they will control their debt level to support the country's economy as trade conflict with the U.S. intensifies. China plans to increase its economy by 6.5 percent at the end of the year. When compared to their previous year, the country's domestic growth grew at around 6.7 percent in the second quarter with a decline of about 6.8 percent pace in the first quarter.
Beijing is increasing its infrastructure spending and at the same time will improve their banking system funds to improve business conditions and loosen up the trade war's effect.
The policy aims to enhance liquidity and increased new loans in the state-backed banks that resulted to a 75 percent in July when compared to their last year's loan enrolment. The economic policy, however, initiated concerns that the funds might be abused by the real estate sector.
Reuters reported that Cong told the media the China's improvement on infrastructure, elderly social care and education is better than what they had in the past and he stated that they aim to meet real demand and reduce the risk of over-capacity.
Cong said China has enough capacity to cope with the effect of escalations created by the trade frictions he ensured that they successfully complete their economic and social goals planned to achieve at the start of the year.
The Chinese government hopes in an increased private investment to reduce government debt and they are giving the local governments more flexibility to sell special bonds to finance their projects. As a result, large rail projects plans were rolled out in just a couple days.
The Jiangsu Communications Holdings were given the approval to sell up to 20 billion yuan ($2.90 billion) worth of enterprise bond on Wednesday and the 12 billion yuan will be utilized for railways and toll road projects. It was NDRC's biggest approved enterprise bond since the middle of June.
A restoration project of a train station in southwest Beijing worth 7.2 billion yuan, the biggest in Asia, was started on Monday.
