China will accelerate tax cuts and reforms for selected industries this year to boost domestic consumption, Finance Minister Xie Xuren said.
China's Cabinet on Wednesday sought to shore up economic weakness in the country, pledging more attention to "stabilizing economic growth" amid fears that the country's economy may slow further in coming months.
Premier Wen Jiabao called for greater efforts to support growth, through more monetary fine-tuning and fiscal incentives, amid signs of the economy further cooling.
China is at an inflection point as its economic policy focus shifts to growth instead of inflation control. It aims for a more managed, selective stimulus, with changes so far falling into the following categories:
Large manufacturers, struggling against falling profits and slower growth, are pinning their hopes on government stimulus measures.
Investment growth in the first four months was at its lowest level in nearly a decade, but the figure may rebound in the second quarter.
China's cabinet vowed on Friday to strengthen its fine-tuning of the economy as it grew by an annual rate of 8.1 percent in the first three months of 2012.
Fixed-asset investment growth eases in March
Expansion of the manufacturing sector cooled to its slowest in five months, with a lower-than-expected PMI dropping to 50.4 from April's 53.3.
China's power consumption decelerated in April amid slowing industrial activities during the period, new data showed Monday.
Newly released economic indicators show that China's economy continued to slow in April, raising expectations that there will be greater policy easing.