China’s Politburo leaders vowed this week to face the country’s economic risks, especially price cuts, and are facing competition from multiple sectors.
They vow to support the economy by increasing the capacity of key industries in the second half of the year. It calls thisCapability Management. ‘
Official news agency Xinhua said on Wednesday that leaders indicated they would curb the price war for producers as people say Beijing could start cutting new factory capabilities in a long-awaited but challenging campaign against diopter.
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Xinhua News Agency quoted a summary of a lawsuit on the meeting of the China Politburo, the highest decision-making body of the ruling Communist Party, whose July gathering sets economic courses for the rest of the year.
It said that in the second half, China will use “flexibility and visionary” statistics while hoping to stabilize employment, companies, markets and expectations.
Analysts say policymakers may feel the urgency of new stimulus measures, stronger than expected economic data, and Continue to truce with Washington’s tariffs Let greater focus on supply-side measures to combat excessive capacity and deflate.
“People place more emphasis on recognizing the potential risks of unbalanced demand,” said Gary Ng, senior economist at Natixis.
“Governments are also more willing to take steps with shrinking pressure and overcapacity in manufacturing. However, the pressure has not prompted policy makers to commit to more direct stimulus because they only maintain options when needed.”
“Wait and view the mode”
In addition, state media quoted President Xi Jinping as saying at a seminar that China should effectively increase consumption and break the cycle of “interaction”, a term widely used in China to describe fierce competition among companies, causing fierce competition between companies to lead to lower returns and even losses.
The summary shows that China will continue to adopt a more proactive fiscal policy and a “appropriately relaxed” monetary policy, but unlike the April meeting, there is no mention of cuts in interest rates or reserve tax rates.
Top leaders also called for the use of structural monetary policy tools to provide greater support for technological innovation, promoting consumption, aiding small businesses and stabilizing foreign trade.
Beijing claims the world’s second-largest economy grew 5.2% ahead of schedule in the second quarter, but analysts say weak domestic demand and increased global trade risks may prompt policy makers to introduce further stimulus.
China’s economic growth in 2025 is about 5%.
“Policy makers are currently taking a to-see model, but they take action whenever their growth targets are threatened,” Macquarie’s chief Chinese economist Larry Hu said in a note.
The October plenary meeting focuses on the 2026-30 plan
Xinhua News Agency reported that the 15th Five Years (2026–2030) is crucial for China to achieve economic modernization due to the profound and complex changes in the country’s development environment.
According to Xinhua, leadership will hold its fourth global schedule in October. Analysts expect the meeting to focus on discussions on the new five-year plan.
Meanwhile, the economy faces continued deflationary pressure as producer prices fall for the 33rd straight month.
Despite policy support, analysts expect the impact of consumer goods trading plans to disappear in the coming months, but analysts expect the impact of consumer goods to change the economy as well.
“At present, China’s economic performance still faces many risks and challenges,” Xinhua News Agency quoted the Politburo as saying.
“Constructive” talks in Stockholm
The rush between exporters took advantage of the tariff truce between Beijing and Washington, and the economy was helped.
The two countries agreed to extend their 90-day tariff truce on Tuesday, and both days afterwards described the constructive negotiations in Stockholm as an attempt to eliminate the escalating trade war.
Xinhua said China will unlock the potential of domestic demand and take steps to increase consumption, adding that the issuance and use of government bonds will be accelerated and more effective uses will be used.
It will also promote technological innovation and accelerate the growth of emerging pillar industries with fierce global competition while curbing disorderly competition.
“Disorder competition among enterprises must be governed by laws and regulations,” the abstract said. “Capacity management in key industries should be improved.”
Some analysts believe that stimulating consumer demand remains the key to effectively combating deflation.
- Jim Pollard’s additional editor Reuters
Note: The title of this report was revised on July 30, 2025.
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