China aims to reach annual growth target despite trade war, state planner says

China will keep its economic growth within a reasonable range in the second half of the year, and will ensure that its full-year growth target is achieved, the country’s state planner said on Wednesday.

While the trade frictions with the United States will have a negative impact on the Chinese economy, China will ensure that its annual growth target will be met, said Cong Liang, spokesman at the National Development and Reform Commission (NDRC).

China aims to expand its economy by around 6.5 percent this year. Gross domestic product grew 6.7 percent in the second quarter from a year earlier, slowing from the 6.8 percent pace in the first three months.

Data is increasingly pointing to a cooling economy as an ongoing campaign by Beijing to curb risks in the financial system raises borrowing costs and squeezes small businesses.

To help firms affected by tighter financing, China has taken steps to boost liquidity and has urged banks to extend more loans to companies. It has also affirmed pro-growth fiscal policies.

This week, local governments rolled out railway investment plans as Beijing pushed them to speed up issuance of special bonds to fund infrastructure projects.

As the world’s second-biggest economy slows, China and the United States are imposing tariffs on each other’s goods, with more set to be activated next week. There are few signs that either side is ready to compromise.

So far, official data for January to July shows trade frictions have had limited impact on the economy, and any impact from higher tariffs will be “controllable,” the NDRC’s Cong said.

China’s efforts to ease credit conditions in the economy have sparked concerns that funds would find their way back into the once red-hot real estate sector.

Cong said China would “resolutely curb” property price rises.

Source: REUTERS