China has promised to spend more on railways, housing for low-income earners and provide tax relief for small business as part of a new stimulus package to ensure the government meets its 7.5 per cent annual growth target this year.

China's State Council, or cabinet, confirmed new measures on its main website just as growth appeared to be losing steam after disappointing first-quarter economic data and moves by many analysts to slash growth forecasts for the year.

China has set a target of economic growth of about 7.5 per cent for this year, below the 7.7 per cent recorded last year and well beneath the levels of recent years.

The stimulus unveiled on Wednesday was also similar to the tools used last year when Chinese growth seemed to flag, and it suggested that government leaders weren't taking chances.

"It's very obvious that the leaders feel the need to stabilise growth," said Mizuho economist Shen Jianguang, Dow Jones news service reported.