# China economic stimulus and trade tensions with EU > Live situation record from CLSTR: https://clstr.news/situations/china-economic-stimulus-and-growth-target-measures > Updated: 2026-09-30T15:25:06.000Z. Sources: 45. Developments: 4. Chinese Premier Li Qiang and the State Council have called for intensified economic stimulus measures to address a slowdown and ensure the country meets its annual GDP growth target of 4.5% to 5.0%. To counter headwinds such as slowing retail sales, declining fixed-asset investment, and a struggling real estate sector, the government plans to increase the intensity of ‘counter-cyclical adjustments’. Proposed actions include accelerating bond issuance, utilizing unused local government bond quotas, and expediting major infrastructure projects. Monetary policy support is expected to expand through the People’s Bank of China (PBOC) to encourage credit for technological innovation, industrial upgrades, and small businesses. The PBOC will increase its re-lending quota for technological innovation by 200 billion yuan, bringing the total to 1.4 trillion yuan, and will lower the interest rate for its pledged supplementary lending (PSL) facility by 0.25 percentage points to 1.5%. To bolster the property sector, the Ministry of Finance will introduce mortgage interest subsidies for eligible first-time homebuyers starting in October. These subsidies will cover up to 1 percentage point of the mortgage principal for up to five years for specific properties. As these domestic measures roll out, trade tensions have escalated. The Chinese Ministry of Commerce has warned of a ‘resolute response’ to safeguard its industries if the European Union implements new trade restrictions, following reports that EU member states, including France and Germany, are considering defensive trade instruments modeled after the United States' Section 301. By September 2026, industrial activity showed signs of recovery. The official manufacturing PMI rose to 50.1, a 0.3 percentage point increase from August, signaling an entry into expansionary territory. The manufacturing production index reached 51.7 percent, while the new orders index stood at 50.5 percent. Additionally, the non-manufacturing PMI reached 50.2, indicating a significant improvement in the non-manufacturing business environment. ## Claims - China's Ministry of Commerce warned it will respond firmly to defend its industries if the EU adopts new trade restrictions. (corroborated by 15 sources) - China's official manufacturing PMI rose to 50.1 in September from 49.8 in August. (corroborated by 9 sources) - The central bank is expected to increase re-lending quotas for technology innovation, industrial transformation, and small businesses. (corroborated by 7 sources) - The government aims to meet the 2026 economic growth target of 4.5% to 5.0%. (corroborated by 5 sources) - The official non-manufacturing PMI rose to 50.2 in September from 49.0 in August. (corroborated by 5 sources) - The Chinese government will intensify counter-cyclical macroeconomic adjustments to support economic growth. (corroborated by 4 sources) - China's GDP growth was 4.3% in the second quarter. (corroborated by 4 sources) - Authorities plan to utilize unused local government bond quotas from previous years. (corroborated by 3 sources) - Policymakers will study measures to stabilize the real estate market. (corroborated by 3 sources) - New policies will focus on promoting employment and boosting household income. (corroborated by 3 sources) - The People's Bank of China is lowering the one-year rate for its pledged supplementary lending (PSL) facility to 1.5%. (corroborated by 3 sources) - China's Ministry of Finance announced mortgage interest subsidies for eligible first-time homebuyers starting in October. (corroborated by 3 sources) ## Timeline ### 2026-09-30: China manufacturing PMI rises to 50.1 percent in September China's manufacturing PMI rose to 50.1 percent in September, entering expansionary territory as production and non-manufacturing activity showed signs of improvement. 2 sources. https://clstr.news/cluster/china-manufacturing-pmi-rises-to-501-percent-in-september ### 2026-09-29: China announces targeted economic stimulus to support growth China has launched a targeted economic stimulus package, including mortgage support and central bank lending expansions, to stabilize its real estate market and meet annual GDP growth targets. 2 sources. https://clstr.news/cluster/china-announces-targeted-economic-stimulus-to-support-growth ### 2026-09-28: China industrial activity expands as Beijing announces economic support China's manufacturing PMI rose to 50.1 in September, signaling industrial expansion. Beijing is also rolling out economic support measures while warning the EU of a “resolute response” to potential trade curbs. 39 sources. https://clstr.news/cluster/china-pledges-stronger-economic-support-to-meet-growth-targets ### 2026-09-28: China Premier Li Qiang calls for stronger economic stimulus Chinese Premier Li Qiang has ordered intensified counter-cyclical economic policies to boost domestic demand and meet annual growth targets amid sluggish consumption and a property sector downturn. 2 sources. https://clstr.news/cluster/china-premier-li-qiang-calls-for-stronger-economic-stimulus --- Cite as: China economic stimulus and trade tensions with EU. CLSTR, https://clstr.news/situations/china-economic-stimulus-and-growth-target-measures