MNI POLICY: China To Roll Out Stronger Stimulus After Q1 Drop

     BEIJING (MNI) - China will act swiftly to introduce a broad selection of

vigorous and targeted policies to help firms survive and the economy stabilize,

Yan Pengcheng, head of the national economy at the National Development and

Reform, said Monday.

     The 6.8% y/y decline in China's Q1 GDP was not a normal reflection of the

country's economic fundamentals, but a result of the coronavirus pandemic -- the

worst global crisis since World War II, Yan added.

     Here are other takeaways from the briefing also attended by NDRC spokesman

Yuan Da:

     - Production by American and Japanese companies in China has improved since

March, showing a stronger willingness to invest in China than in February, said

Yuan. "There are only a few foreign companies in China considering adjusting

their industrial layout," Yuan added. 

     - The task of poverty alleviation must be completed this year, with

companies resuming operations giving priority to migrant workers from poorer

areas when hiring, said Yan.

     - Inflation is expected to continue to decline, and the NDRC will increase

releases of the pork reserve in a timely manner, whilst encouraging the import

of other important livelihood products, said Yan.

     - The NDRC will accelerate the deployment of 5G networks, as well as the

construction of national integrated big data centres.

     - The NDRC has approved eight fixed asset investment projects with a total

investment of CNY77.3 billion, mainly in the areas of transportation and energy,

said Yuan.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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