China State Council Sets H2 Priorities with Demand Push and Infrastructure

During a State Council executive meeting chaired by Premier Li Qiang, China outlined key economic priorities for the second half of the year, focusing on expanding domestic demand and laying groundwork for the 15th Five-Year Plan. The cabinet called for combining existing and new macro policy measures, accelerating major infrastructure projects through an integrated 'Six Networks' framework—including modern power grids and logistics networks—and approving four nuclear power projects. It also advanced regulatory revisions covering housing provident funds and national health strategies.

The cabinet's directives highlight Beijing's strategy to bolster domestic demand and buffer against macroeconomic headwinds through targeted infrastructure investment and policy coordination. By aligning immediate growth stabilization with longer-term 15th Five-Year Plan objectives, policymakers aim to improve supply-chain efficiency and upgrade energy networks while maintaining fundamental social safety nets.

China’s State Council, chaired by Premier Li Qiang, has deployed a series of policy measures aimed at effectively expanding domestic demand and ensuring a solid start for the upcoming 15th Five-Year Plan period, according to state media reports on the executive meeting held on July 31. The meeting emphasized aligning administrative execution with top-level assessments of the macroeconomy. Premier Li called for enhancing the effectiveness of macroeconomic policies by fully utilizing existing measures while planning targeted incremental policies. To boost domestic demand, cabinet directives instructed authorities to introduce impactful measures in sectors with high growth potential and strong economic spillover effects. A central pillar of the meeting’s agenda was accelerating major projects mapped out under the 15th Five-Year Plan, specifically advancing the integrated planning and construction of China's 'Six Networks.' During the session, ministers heard progress reports on two critical components: modern power grids and logistics networks. Cabinet guidelines specified that building high-quality modern power grids must meet growing electricity demand while supporting a green, low-carbon transition. For logistics, the plan targets strengthening core hub nodes, improving urban-rural delivery networks, and lowering the ratio of total social logistics costs to GDP during the 15th Five-Year Plan period. According to statements from the National Development and Reform Commission cited by National Business Daily, the 'Six Networks'—which also integrate computing and communication networks—are designed as a deeply coupled system where cross-sector synergy yields greater efficiency than isolated investments. To reinforce clean energy supply and drive fixed-asset investment, the State Council approved four nuclear power projects during the session, including the Liaoning Zhuanghe Phase I project. Beyond physical infrastructure, the executive meeting addressed administrative and social welfare reforms. Cabinet members approved draft revisions to the Housing Provident Fund Management Regulations and reviewed plans to execute China's health-priority strategy. For health coverage, policymakers called for strengthening public health and medical insurance systems, aligning with the recently issued 15th Five-Year Plan for National Health to standardize medical insurance catalogs and achieve provincial-level fund pooling. Throughout the session, the State Council stressed strengthening internal growth drivers through a unified national market and an optimized business environment, while maintaining vigilance over safety production and key sector risk prevention.