CHINA will roll out tools in its policy reserve in a timely way to cope with more economic challenges, as COVID-19 outbreaks and risks from the Ukraine crisis pose a threat to employment and price stability, an official at the top economic planning agency said yesterday.

Activity in the world’s second-largest economy is beginning to recover after COVID-19 lockdowns in April and early May throttled growth, recent data have shown, but headwinds such as a property market downturn, weak consumer spending and the risk of more COVID outbreaks persist.

The government will implement its existing support measures while improving its policy toolbox, Ou Hong, deputy secretary general at the National Development and Reform Commision (NDRC), told a news conference. New policy support, depending on the circumstances, can be rolled out in a timely manner, he said.

“We are fully confident of overcoming the difficult challenges in economic operation and we have the ability to cope with all kinds of unexpected changes to ensure stable, healthy and sustainable economic development,” Ou added.

Ou acknowledged that COVID-19 outbreaks and the Ukraine crisis since March have threatened to undercut growth and driven up unemployment and inflation.

Ou’s comments echoed recent remarks made by Finance Minister Liu Kun, who said that authorities are studying new policy tools to support the economy and planning to front-load stimulus.

The NDRC will “appropriately front-load” the construction of infrastructure that can help guide industrial development and urbanization, Yang Yinkai, another deputy secretary general of the NDRC, said at the same briefing.

The authorities will promote the growth of advanced manufacturing, modern services and strategic emerging industries to provide more suitable jobs for young people, given rising employment pressure on the group, he said.

Noting headwinds from imported inflation amid geopolitical tensions, Yang said China can maintain stable prices due to ample supply and policy preparation.

The government will strengthen the adjustment of hog production to prevent large price volatility, guide coal costs to stay in a reasonable range, and strengthen market supervision to crack down on hoarding and “firmly curb speculation by capital,” he said.

Zhao Chenxin, a vice director at the NDRC, told the same briefing that China would’t resort to flood-like stimulus, a stance the government has reiterated in past years due to debt concerns.

China’s monetary policy will continue to be accommodative to support economic recovery, People’s Bank of China Governor Yi Gang was quoted by domestic media as saying Monday.

In May, the government announced a slew of measures covering fiscal, financial, investment and industrial policies to wrestle with the COVID-induced damage to its economy.

China’s economy had a mixed recovery in May, with industrial output beating expectations and returning to growth while consumer spending and the property market remained in contraction. President Xi Jinping pledged last week to strive to meet economic targets for the year by adopting more effective measures. (SD-Agencies)