China Vows Economic Support as Growth Slows

On Monday, Chinese Premier Li Qiang called for stabilizing foreign demand and expanding international trade cooperation. He was responding to persistently weak domestic demand and growing uncertainty in the external environment.

The world’s second-largest economy relies heavily on exports, which help offset weak domestic demand. This demand is being dampened by a prolonged crisis in the real estate market, which is limiting both investment and household spending. However, trade tensions and the war in the Middle East could affect global demand for Chinese goods.

Economic data show that the slowdown is continuing. Both industrial production and retail sales have declined, and GDP growth in the second quarter fell to 4.3%, falling short of the government’s full-year target of 4.5% to 5%. The main bright spot remains exports of high-tech products and chips, supported by the global boom in artificial intelligence.

Li Qiang emphasized the determination to achieve the annual economic targets through effective measures. Key strategies include strengthening domestic demand, supporting employment and household incomes and attracting private investment into infrastructure and emerging sectors.

(Reuters, Max)