Chinese leaders are expected to intensify policy support in the second half of the year to bolster the country’s economic growth, which has shown signs of decelerating, analysts said.
The leaders will focus on ensuring the policies are effective and forward-looking to address possible risks and uncertainties, the analysts said.
Their comments came after top policymakers acknowledged at a key meeting in Beijing on Friday that the country’s economic recovery is still unstable and unbalanced, as it faces an increasingly complex and challenging external environment.
While China’s economic recovery remains on a steady path, rising uncertainties have emerged amid the global surge of the Delta variant of coronavirus and recurrence of local COVID-19 cases. The recent heavy rainfall and floods in some Chinese provinces have disrupted business activities and the soaring raw material prices have eaten into corporate profits.
The meeting emphasized the need to maintain policy consistency, stability and sustainability and to improve cross-cycle policy adjustment. Meanwhile, it also set out policy directions for key industries including electric vehicles, rural e-commerce and logistics delivery systems to substantially expand domestic demand and boost investment.