BEIJING: China\u2019s leaders are \u201cclearly aware\u201d of challenges facing growth, the head of the country\u2019s top economic planning body said on Friday, vowing to boost sluggish domestic consumption.<\/p>\n
The comments were made on the sidelines of the annual \u201cTwo Sessions\u201d in Beijing, a closely watched political gathering at which the government unveiled on Thursday a growth target for 2026 of 4.5-5 percent, its lowest in decades.<\/p>\n
Zheng Shanjie, chairman of the National Development and Reform Commission, told a news conference on Friday that China has a \u201csolid foundation\u201d for achieving that goal.<\/p>\n
\u201cWe are determined, flexible and effective in responding to risks and challenges from various sides,\u201d Zheng said.<\/p>\n
Targets 4.5 to 5pc growth, its lowest in decades<\/p>\n
However, he also said \u201cwe are also clearly aware that we still face many difficulties and problems\u201d.<\/p>\n
Beijing has battled a persistent downturn in consumer and investor sentiment in recent years, a protracted property sector debt crisis and trade headwinds with the United States.<\/p>\n
Leaders in the world\u2019s second-largest economy were reviewing steps this week to address those challenges in the government\u2019s latest Five-Year Plan, an economic, political and social roadmap that will guide China through to 2030.<\/p>\n
A 100 billion yuan ($14.5 billion) fund to encourage spending is among measures included in economic planning, authorities said on Thursday.<\/p>\n
\u201cContradictions rem\u00adain prominent, with insufficient consumer spending and weak growth in private investment,\u201d Finance Minister Lan Fo\u2019an told Friday\u2019s news conference.<\/p>\n
The new fund will \u201cpromote domestic demand through fiscal and financial coordination\u201d, including \u201cfour policies specifically supporting private investment and two supporting consumer spending\u201d, Lan said.<\/p>\n
China\u2019s economy has slowed in recent years after decades of rapid growth powered by urbanisation, real estate development and infrastructure investment.<\/p>\n