CPC leaders stress stability, progress in China's economic work

China will continue "seeking progress while maintaining stability" for its economic work in the second half of 2017, according to a meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee on Monday.

The meeting presided over by Xi Jinping, general secretary of the CPC Central Committee, stressed that China would implement a proactive fiscal policy and prudent monetary policy with supply-side structural reform as the main theme in the latter half of the year.

Tone settled for second half: stability and progress

The meeting set the general tone for the economic work of the second half of 2017 to be stability and progress. The authorities were called on to maintain the continuity and consistency of policies, and push forward supply-side structural reforms.

Leaders at the meeting also called for guarding against systemic financial risks, to secure social stability, as well as the balance, timing, and intensity of the country's economic work.

Meanwhile, firm measures were pledged to push for progress on excess capacity cuts, inventory reduction, deleveraging, relieving corporate burdens and fixing weak links, and more efforts were asked to deal with "zombie enterprises," or unprofitable firms burdened by debt, mismanagement or overcapacity.

Work should also be done to defuse local government debt risks, regulate financing activities of local authorities and curb the growth of hidden debt, according to the meeting. Meanwhile, financial regulation will be strengthened to make the financial sector better serve the real economy, said a statement after the meeting.

The plan was outlined after the meeting addressed the problems faced by the Chinese economy in the long term, to which the attendees called on authorities to maintain a sober mind and a persistent strategy.

Despite the difficulties and based on a study of current economic situation, the authorities also summed up the achievements in the first half of the year.

Economy stable and positive in the first half of 2017

The meeting affirmed that China's economic performance is stable and has shown positive improvements in the first half of the year.

According to the data released by the National Bureau of Statistics (NBS) last week, China's gross domestic product (GDP) expanded by 6.9 percent year-on-year in the first half, with the total amount reaching 38.15 trillion yuan (5.62 trillion US dollars).

The growth rate is well above the government's target for the year of 6.5 percent, which reflected a firming trend in the country's economy.

During Monday's meeting, the authorities said that local governments have been maintaining the continuity and consistency of policies to ensure the stable and healthy economic development while pushing forward the supply-side structural reform and fully implementing the new development concept. 

Around 7.35 million new jobs were created in China's urban regions during the first half of the year, 180,000 more than the same period last year, according to a press conference of the NBS last week. 

The fiscal income, corporate profits, and residents' income has seen rapid growth from January to June, and the economic structure has seen deepened adjustment, said the meeting.

The service sector expanded by 7.7 percent year-on-year in the first half, outpacing a 3.5-percent increase in primary industry and 6.4 percent in secondary industry, according to the NBS, adding that consumption has become a leading contributor to the growth. 

The meeting also affirmed regional cooperation and coordination, stressing the implementation and progress of the Belt and Road construction, the development of the Beijing-Tianjin-Hebei region and the Yangtze River economic belt.

Meanwhile, poverty relief work, environmental protection, and environmental governance have achieved positive progress, and the governments' and enterprises' role-shifting has also boosted the market's confidence, said the meeting.