FX.co ★ Chinese premier calls for stronger countercyclical economic regulation

Chinese Premier Li Qiang advocates for tighter countercyclical regulation and a comprehensive assessment of the current state of the domestic economy amid signs of a slowdown in GDP growth. The prime minister made the remarks on Monday at a meeting with economic experts and entrepreneurs, CCTV reports. Li Qiang stressed the importance of an objective approach: authorities must acknowledge economic achievements while clearly pinpointing and addressing existing problems. The statement came ahead of the release of official GDP data for Q2 2026.

Analysts surveyed expect China’s economic growth to slow to 4.5% in the second quarter, down from 5% in the January–March quarter. That reading would push the indicator to the lower border of Beijing’s annual target range (4.5–5%). Li Qiang emphasized that economic performance in the second half of the year would be decisive for meeting annual plans. He urged maintaining strategic consistency in development and taking measures to stabilize employment and unlock domestic consumer demand.

To sustain economic momentum, the premier called for effective use of existing mechanisms and the rapid preparation of additional government support measures. Investors are looking ahead to a Politburo meeting at the end of July for signals on new stimulus that would shape Beijing’s policy for the rest of the year. Most experts do not anticipate aggressive steps from China’s authorities unless GDP falls to a critically low level.