BEIJING: China’s economic policy will remain focused on investment and advanced industries as Beijing prepares for trade negotiations with the United States and European Union.
The Communist Party’s Politburo called for targeted economic support and faster fiscal spending at its July 30 meeting. It also pledged to expand domestic demand but announced no major consumer-focused stimulus.
An official Xinhua account said policymakers would support artificial intelligence, future industries and emerging economic sectors. They also promised to curb damaging price competition among producers.
Meanwhile, China’s Commerce Ministry rejected Western allegations of industrial overcapacity. A July position paper described the claims as protectionist and disputed links between China’s trade surplus, subsidies and excess production.
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The statements signal limits on the concessions Beijing may offer its trading partners, Economist Intelligence Unit senior economist Xu Tianchen told Reuters.
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However, China has not ruled out gradually increasing household spending. A State Council plan released on July 13 targets retail sales of about CNY60 trillion (USD8.8 trillion) by 2030.
It also seeks to raise household consumption as a share of gross domestic product. Trade tensions have intensified as Western governments argue that weak Chinese demand pushes subsidised exports into overseas markets.
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Beijing says its manufacturing and technology investments benefit the global economy. Xi and US President Donald Trump plan further meetings in 2026, although officials have announced no dates.
Meanwhile, Brussels wants meaningful progress on rebalancing EU-China trade by October.
