He Jun

On July 24, the Political Bureau of the Communist Party of China convened a meeting to analyze and study the current economic situation and set forth economic plans for the second half of the year.
The meeting was presided by Chinese President Xi Jinping. Given the highly complex economic situation and the release of China’s half-year economic data, researchers at ANBOUND provide the following preliminary interpretations regarding the assessment of the economic situation and the country’s measures for the second half of the year.
Firstly, the meeting pointed out that the economy is facing new difficulties and challenges. These mainly include insufficient China’s domestic demand, operational difficulties for some enterprises, multiple risks in key areas, and a complex external environment. After changes in the country’s COVID-19 policy, the economic recovery is characterized by wave-like development and twists and turns. However, China’s economy has enormous development resilience and potential, and its fundamental long-term positive trend remains unchanged.
ANBOUND researchers point out that a key focus of the recent meeting of the Political Bureau was the special emphasis on the fundamental judgment of “insufficient domestic demand”, while also acknowledging that the economic recovery is characterized by “wave-like development and twists and turns”. This implies that a series of economic policies and adjustments in the future will revolve around addressing this demand shortfall in their design and implementation.
Secondly, regarding the economic work for the second half of the year, the meeting emphasized the need to adhere to the general principle of making progress while ensuring stability. The goal is to continuously promote the sustained improvement of economic performance, enhance endogenous growth drivers, improve social expectations, and address hidden risks, ultimately achieving qualitative and efficient improvement, as well as reasonable growth in the economy.














