Mainland economy 'faces new challenges'
The world's second-largest economy is facing new difficulties and challenges, according to a Politburo meeting in Beijing on Monday. Factors such as weak domestic demand, difficulties in the operation of some enterprises and a complex external environment were cited. President and general secretary of the Communist Party Central Committee, Xi Jinping, presided over the meeting "to analyse the current economic situation and make arrangements for economic work in the second half of the year," Xinhua News Agency reported. Authorities stressed the need to stick to a proactive fiscal policy and a prudent monetary policy; offer strong support to scientific and technological innovation and the development of small and medium-sized enterprises; and keep the renminbi exchange rate "generally stable at an appropriate and balanced level". GDP growth on the mainland reached 4.5 percent in the first quarter and 6.3 percent in the three months ending June, but there have also been concerns about a slowing post-Covid recovery.