China vows to sustain recovery with policy support amid rising uncertainties

China will step up policy support to consolidate its recovery trend and guard against mounting uncertainties, highlighting both progress in the first half of the year and challenges ahead, according to a report unveiled on Wednesday.
At the second plenary meeting of the 14th National People's Congress Standing Committee's 17th session, Zheng Shanjie, head of the National Development and Reform Commission, the country's top economic regulator, delivered a report on the implementation of this year's economic and social development plan.
The report said China's economy maintained a recovery trend in the first half, with solid progress in high-quality development, rising domestic demand, accelerated development of new quality productive forces, and deeper reform and opening-up.
For the second half, policymakers will prioritize releasing domestic demand potential, advancing technological and industrial innovation, deepening reforms, and expanding opening-up. Authorities will also focus on preventing and defusing risks in key areas, promoting coordinated development between regions and integrated urban and rural development, pushing for green and low-carbon growth, and improving people's livelihoods, according to the report.
Looking into the remainder of the year, the country will unveil new measures to expand service consumption, accelerate the rollout of the guideline on developing new quality productive forces, introduce steps to stabilize foreign trade and investment, while addressing local government debt risks in an orderly way, the report said.
Still, the report cautioned that headwinds remain. Externally, global economic growth remains fragile, while geopolitical risks are becoming more complex. Domestically, still-weak demand, supply-demand imbalances, rat-race competition in some industries, pressure on employment, and risks in certain areas continue to weigh on the economy.
Despite the pressures, the report stressed that China retains a solid foundation and long-term strengths, given the huge domestic demand potential, accelerated development of new quality productive forces, stronger international influence that could broaden international cooperation, and the combined force of existing and incremental policy measures.