Chinese premier stresses maneuvering monetary policy tools to bolster real economy

Chinese Premier Li Keqiang on Wednesday said that the country will maneuver monetary policy tools when appropriate to effectively support the real economy.

Chairing a State Council executive meeting, Li also stressed the need for enterprises in strained industries to postpone the payment of pension insurance, as well as stabilize jobs and strengthen employment training.

The meeting noted that, despite the current complexity and uncertainty both at home and abroad, the country's overall economic indicators generally remain within a reasonable range.

Citing the increasing downward pressure from the sluggish recovery of the global economy, fluctuations in the prices of grain and energy, and domestic sporadic resurgences of COVID-19, the meeting urged efforts to coordinate epidemic control with economic and social development.

The country needs to ensure the overall stability of employment and prices to achieve its aim of maintaining major economic indicators within an appropriate range, the meeting said. It also said that efforts should be made to maintain the smooth operations of logistics and industrial and supply chains, safeguard food and energy security, and ensure job creation by supporting market entities.

The meeting urged relevant authorities to actively implement existing policies while introducing timely measures to stabilize market expectations in light of situational changes.

Noting that some market entities have been hit hard by the epidemic, the meeting stressed the need for intensified efforts to provide relief to struggling businesses and meet the country's basic employment goal.

The policy that allows the deferral of pension insurance payments will be implemented during the second quarter of 2022 to address the acute difficulties facing sectors such as catering services, retail, tourism, aviation and transportation, the meeting said.

It also stressed the importance of efforts to appropriately and flexibly use a variety of monetary policy instruments such as re-lending to increase support for the real economy.

The country will forcefully implement its prudent monetary policy to maintain reasonably sufficient liquidity, explore and adopt financial measures to bolster consumption and effective investment, and support financing in key fields and for weak links, the meeting noted.