China’s Premier Calls for Faster Infrastructure Investment and Stronger Domestic Consumption

Chinese Premier Li Qiang has called for faster implementation of major infrastructure projects, stronger support for business investment and closer links between online and offline consumption, as Beijing steps up efforts to meet the country's economic and social development targets for 2026.

Li chaired a State Council executive meeting on Friday that reviewed the economic situation and priorities for the remaining months of the year, according to a report published by the Chinese government.

The meeting urged government departments to strengthen confidence, improve policy implementation and ensure that major development targets are achieved. It called for accelerating the construction of major projects and the country's so-called "six networks" of infrastructure, covering water, electricity, computing capacity, communications, urban underground pipelines and logistics.

The infrastructure agenda reflects Beijing's effort to support economic activity through investment while building networks considered important for long-term development. Water and power infrastructure are essential for industrial production and urban growth, while computing and communications networks are increasingly important to digital services, data centers and advanced manufacturing. Logistics infrastructure is intended to improve the movement of goods and reduce distribution bottlenecks.

The meeting also called for supporting enterprises as they expand investment in equipment upgrades and intangible assets. Such investment can include modernizing production lines, adopting new technologies, improving software systems and strengthening research and development capabilities.

A further priority is to improve the relationship between investment and consumption. The State Council called for stronger links between online and offline markets and between urban and rural consumption, with the aim of creating a more sustainable cycle in which investment supports demand and stronger demand encourages further business investment.

The meeting urged government departments to make full use of existing policy funds and ensure that payments to local-level authorities and enterprises are made fully and on time. It also called for better coordination between fiscal and financial policies to support domestic demand.

These instructions come as policymakers seek to reinforce the contribution of household consumption and private investment to economic growth. Infrastructure spending can provide short-term support to construction, materials, equipment and logistics businesses, but stronger consumer demand is also important for sustaining growth beyond government-funded projects.

Employment was another major issue discussed at the meeting. Officials called for keeping employment stable, improving services for key groups and providing assistance to university graduates facing difficulties finding jobs. The emphasis on graduate employment reflects the challenge of matching a large supply of young workers with opportunities in a changing labor market.

The State Council also called for continued efforts to manage risks associated with local government debt and small and medium-sized financial institutions. These issues have remained important concerns for China's financial system, particularly as local authorities seek to fund infrastructure and public services while managing existing liabilities.

The meeting further emphasized the need to improve mechanisms for stabilizing the capital market and strengthen the stock market's underlying resilience. The latest statement follows a series of government measures aimed at supporting market confidence and encouraging longer-term investment.

In addition to immediate economic priorities, officials began studying the country's economic agenda for next year. The meeting called for stronger coordination across policy years to maintain positive economic momentum.

The statement does not announce a new nationwide stimulus package or specify a fresh spending target. Instead, it outlines priorities for implementing existing policies and accelerating projects already included in the government's development agenda.

For businesses, the main signals are a continued policy focus on infrastructure, equipment modernization, domestic consumption and employment. The effectiveness of the approach will depend on how quickly projects move from planning to construction, whether enterprises respond with additional investment and whether households become more willing to spend.