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China is considering providing additional support to local businesses and consumers this year through loan subsidies and other financing tools, as economic growth falls below the government's annual target.

During a briefing in Beijing on Friday, Vice Minister of Finance Liao Min stated that revised policies aimed at stimulating domestic demand took effect on August 1, expanding the scope of interest rate subsidies provided to consumers as well as small and micro enterprises.

The financial support package dedicated to boosting domestic demand has facilitated the provision of over 20 trillion yuan ($3 trillion) in new loans during the first seven months of the year, marking an increase of more than 4% compared to 2025.

China's Economic Slowdown Under Scrutiny

Government data released earlier in the week revealed that industrial production, consumption, and investment slowed more than expected in July. Pressure is mounting on policymakers to ramp up stimulus measures, amid estimates by economists that gross domestic product (GDP) growth has drifted further away from Beijing's annual target of 4.5% to 5%, after recording a mere 4.3% in the second quarter.

Liao added that China will strive to build a stronger and more balanced financial system as part of its upcoming economic plan extending through 2030. He noted that the remaining bond issuance quota of 2 trillion yuan for the second half of the year could help the government maintain its "fiscal spending momentum."