The world’s second-largest economy grew at a frail pace in the second quarter as demand weakened at home and abroad, raising pressure on policymakers to deliver more stimulus to shore up post-Covid recovery. China will step up economic policy adjustments, focusing on expanding domestic demand, boosting confidence and preventing risks, state news agency Xinhua cited the Politburo, a top decision-making body of the ruling Communist Party, as saying. “Currently, China’s economy is facing new difficulties and challenges, which mainly arise from insufficient domestic demand. . . as well as a grim and complex external environment,” Xinhua quoted the Politburo as saying, after a meeting chaired by President Xi Jinping.
China will implement its macro adjustments “in a precise and forceful manner” and strengthen counter-cyclical adjustments, as the government sticks with a prudent monetary policy and pro-active fiscal policy, the Politburo was quoted as saying.