(Yicai) April 10 -- Chinese Premier Li Qiang emphasized the need to implement more proactive macro policies and introduce new incremental policies in a timely manner in light of the current global uncertainties during a recent meeting with economic experts and entrepreneurs. He stated that China will make expanding domestic demand a long-term priority and will focus on fully unlocking the potential of businesses as external conditions continue to evolve.

Although there are external pressures, the Chinese economy still has multiple strengths, strong resilience, and immense potential, according to attendees of the meeting, which included Zhang Bin, deputy director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, Li Xunlei, chief economist at financial services firm Zhongtai International, Shen Jianguang, chief economist at e-retailer JD.com, Wan Min, chairman of shipping giant China COSCO Shipping Group, Zheng Jin, chairman of construction machinery manufacturer Guangxi Liugong Group, Peng Zhihui, co-founder and CTO of robotics company AgiBot, and Wang Zuan, president of logistics firm Fujian Zongteng Network.

There’s still a lot of space left for policy moves, said Zhang Jun, chief economist at China Galaxy Securities. China has been working on a new development model for the real estate sector in recent years and is clearing up hidden local government debt to foster more stable and healthier economic growth. With inflation remaining relatively low, the country is now better positioned to implement expansionary fiscal policies.

Wu Chaoming, chief economist at Chasing Financial Holdings, predicted that there will be another cut to banks’ reserve requirement ratio in the second quarter, followed by interest rate reductions and targeted structural monetary tools to support certain parts of the economy.

To reignite domestic demand, Zhang Bin urged prioritizing combining consumption with investment, particularly through public-sector investment. Li Xunlei warned that there was a need to step up domestic consumption in the face of the US’ unexpectedly steep tariff hikes and the potential escalation of retaliatory tariffs. Fiscal spending should shift toward supporting consumption rather than mainly investment. And the budget deficit could be widened to support public wellbeing programs and encourage spending, he added.

Since the start of the year, the State Council, which is the country’s cabinet, has issued several directives to help businesses, such as clearing overdue payments and cracking down on unfair fees. On April 8, the National Development and Reform Commission convened a meeting with five private firms, including solar panel manufacturer Trina Solar and ride-hailing giant Didi Chuxing Technology, to discuss strategies on countering US tariffs and stabilizing exports and employment.

Editor: Kim Taylor