Photo: VCG

The Political Bureau of the Communist Party of China (CPC) Central Committee held a meeting on July 30 to make arrangements for economic work in the second half of this year, making it clear there is a need to promote sustained innovation-driven, high-quality and sound economic development, ensuring a good start to the 15th Five-Year Plan period (2026-30). To arrange economic work effectively in the second half of this year, we must thoroughly implement the decisions and arrangements of the CPC Central Committee, intensify counter-cyclical adjustment efforts, give full play to the efficiency of existing policies, promptly plan and introduce practical and effective incremental policies, boost development momentum, and stimulate social vitality.

First, we should act proactively to ensure that macroeconomic policies must boost efficiency. We will continue to implement a more proactive fiscal policy and a moderately loose monetary policy. In the first half of this year, the average daily balance of treasury cash remained relatively high nationwide, reflecting ample available fiscal funds. We must accelerate the execution of fiscal expenditures and the utilization of bond funds to translate them into physical workload as soon as possible. We must strengthen the monitoring of fiscal operations and treasury cash scheduling, firmly ensuring that the "three guarantees" (guaranteeing the basic living needs, the payment of salaries and the government functioning) at the grass-roots level are fully safeguarded. We should comprehensively apply and adjust monetary policy tools in a timely manner, maintain adequate liquidity, unblock the transmission mechanism of the monetary policy, and promote low-level social financing costs. We must effectively implement structural monetary policy tools to strengthen support for key areas such as expanding domestic demand, scientific and technological innovation, and micro, small and medium-sized enterprises. We should optimize the implementation of fiscal and financial synergistic policies to promote domestic demand, forming a transmission chain where fiscal policies give the guidelines, financial sectors amplify it and markets operate with it. We must strengthen the consistency assessment of macroeconomic policy orientations, leaving reasonable transition periods for major policy adjustments that affect enterprise production and operation.

Second, exerting sustained efforts, we must effectively expand domestic demand. As commodity consumption in certain sectors of our country has reached saturation or entered a phased plateau period, we must adapt to the consumption demands of different groups, expand quality supply, and actively cultivate and grow emerging consumption. Service consumption is a key area for expanding consumption in the future. We must innovate consumption scenarios, optimize the consumption environment and tap into the potential of service consumption. With fixed-asset investment declining by 5.7 percent in the first half of the year, we must foster a stabilization and turnaround in investment. We should coordinate projects and funds well and steadily advance the planning and construction of the "six major networks," namely water networks, new-type power grids, computing power networks, next-generation communication networks, urban underground pipeline networks and logistics networks. We must strengthen factor guarantees, seize the construction peak season window in the third quarter, and accelerate the approval and commencement of major projects determined in the 15th Five-Year Plan (2026-30). A total value of 800 billion yuan ($119 billion) has been put in new types of policy-backed financial instruments this year, primarily used to supplement capital funds for major projects. We must accelerate the deployment of funds into specific projects to leverage more private investment.

Third, led by innovation, we must accelerate the construction of a modernized industrial system. Basic research is the source of the entire scientific system and the ultimate master key to all technological problems. We must increase long-term stable support for basic research, enhance the systematic problem-solving capabilities of technological innovation, and promote the deep integration of scientific and technological innovation with industrial innovation. We must thoroughly implement the "AI+" initiative, forge new forms of smart economy, drive artificial intelligence technology to empower thousands of industries and sectors and simultaneously improve the AI governance system while accelerating foundational AI legislation. Since the beginning of 2026, the demand for AI computing power has grown rapidly, driving the accelerated development of the semiconductor industry. We must both strengthen the supply of advanced computing power and prevent a blind, uncoordinated rush of projects. Furthermore, we need to actively promote breakthroughs in cutting-edge technologies and the development of future industries, focus on cultivating emerging pillar industries, and continuously drive the transformation and upgrading of traditional industries.

Fourth, confronting contradictions head-on, we should foster a fair and orderly market environment, and formulate and implement regulations to establish a unified national market, standardizing local investment promotion and enterprise competition behaviors. Both negative and positive lists will be utilized to promote transparency and fairness. Efforts to comprehensively rectify "involutionary" competition, especially in sectors characterized by low-price and disorderly rivalry, should be continued, guiding relevant industries to return to value-based and rational competition. In recent years, the rapid growth of accounts receivable has become a persistent issue for enterprises, with extended average collection periods and increased difficulty in debt recovery. We will normalize the resolution of outstanding payments, strengthen oversight and rectify malicious arrears. The governance mechanisms for platform enterprises will be improved to promote the healthy and regulated development of the platform economy. Steady and progressive reforms will be implemented gradually in the pricing of public utilities such as water, gas and heating.

Fifth, we should coordinate domestic and international imperatives and expand the scope for mutually beneficial international economic and trade cooperation. The more turbulent and complex the external environment becomes, the more steadfastly we must uphold opening-up and foster win-win cooperation across multiple sectors. We need to actively expand trade in intermediate goods, cross-border e-commerce, digital trade and green trade, while vigorously developing trade in services. Import expansion and trade balance will be prioritized, with efforts to further host the China International Import Expo. The management system for outbound investment and the comprehensive overseas service system will be improved,, enhancing the safety and rationality of foreign investments and strengthening the protection of overseas interests. Attraction and utilization of foreign capital will be intensified to boost foreign businesses' confidence in investing in China, supporting long-term growth of foreign-invested enterprises in the Chinese market.

Sixth, we should lay a solid foundation and unwaveringly focus on work related to agriculture, rural areas and rural residents. Normalized and targeted assistance will be carried out to consolidate and expand poverty alleviation achievements, ensuring that no large-scale re-poverty occurs. Food security is an important foundation of national security, and this year's summer grain output has exceeded 150.75 million tons for the first time. 

Continued efforts should be made to ensure agricultural production, aiming for a bumper harvest of autumn grains and of the entire year. We should stabilize the production and prices of live pigs and other agricultural and livestock products, and advance the high-quality development of the beef and dairy cattle industries. The development of high-standard farmland is a key carrier for implementing the strategy of "storing grain in the land and in technology"; it is essential to establish and improve mechanisms for construction, operation and maintenance to ensure that every project succeeds and delivers long-term benefits.

Seventh, we should implement multiple measures to effectively strengthen people's livelihood guarantee. Employment is the most basic component of people's well-being. This year, the number of college graduates reached 12.7 million, a new high. Efforts should be increased to support employment for key groups. Currently, the number of flexible employees in China is about 200 million, and the number of workers in new employment forms is large; related rights and interests protections should keep pace. The impact of artificial intelligence on employment will be thoroughly analyzed and responded to, promoting the inclusively integration of technological progress with employment development. To expand consumption, efforts will focus on enhancing residents' income-raising capacity and willingness through practical measures aligned with high-quality development. The development of inclusive, fundamental and bottom-line social security systems will be accelerated, with particular attention to services for the elderly and children, and the improvement of tiered and categorized social assistance mechanisms. Continuous efforts will be made to improve air quality, implement the Three-North Shelterbelt Forest Program, and advance carbon peaking and carbon neutrality goals in a steady and prudent manner.

Eighth, we should hold the bottom line and build a solid security barrier. As the saying goes, "The wise prevent trouble before it arises; the prudent plan against risks before they materialize." We must strengthen bottom-line thinking and effectively prevent and defuse various risks. It is essential to stabilize the real estate market and advance urban renewal with high quality. We should implement a comprehensive debt-resolution package and steadily mitigate the risks of local government debt. Financial risk prevention and control must be reinforced, while reforms of local small and medium-sized financial institutions should be advanced in a solid manner to reduce risks and improve quality. We need to deepen comprehensive reforms of investment and financing in the capital market, further improve mechanisms for channeling medium- and long-term funds into the market, and enhance the resilience and confidence of the capital market. We must thoroughly identify and address potential risks, resolutely curb major and severe accidents, and effectively safeguard people's lives and property as well as overall social stability.

China's economic development enjoys ample room for maneuver, vast market potential, and strong resilience and vitality. We must remain confident, rise to challenges, make full use of opportunities and advantages, and with greater vigor and determination, promote high-quality development to achieve steady and sustained progress.