China pledges to support economic growth to meet annual target after second-quarter GDP slows

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China's State Council has pledged to implement policies to ensure the economy meets its full-year 2026 growth target, after second-quarter GDP expanded by only 4.3%, below the 4.5% to 5% target range. The meeting, chaired by Premier Li Qiang, stated that fiscal budget resources should be used with maximum efficiency and emphasized the Six Networks project worth 7 trillion yuan, a major infrastructure initiative covering data centers and underground pipeline systems. It called for systematic planning and construction based on local conditions and industrial needs, while strengthening financial resources. The meeting also discussed audit work to monitor central government budget spending, pledging to seriously address identified issues and reinforce fiscal reforms. This may signal a shift toward more accommodative fiscal policy, after earlier spending controls led to the first budget deficit reduction in over two years in May, but have yet to significantly ease pressure from weak domestic demand.

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