China mulls economy-boosting measures to tackle challenges
BEIJING
Shoppers tour a crowded shopping mall during the summer school holiday, in Beijing on Sunday, July 13, 2025. (AP Photo/Andy Wong)
China is prepared to take measures and has a "plentiful" toolbox to avoid an economic slump in the second half of the year, its commerce minister said on July 18 as he admitted it faced a "very severe and complex situation."
Growth hit 5.2 percent in the second quarter, official data showed this week, but analysts have warned that more must be done to boost sluggish domestic consumption as exports face the knock-on effects of global trade turmoil.
Retail sales rose far less than expected last month and were much weaker than May, suggesting efforts to kickstart consumption have fallen flat.
"We are still facing a very severe and complex situation. Global changes are unstable and uncertain. Some of our policies will provide some new responses according to the times and circumstances," Wang Wentao told journalists at a news briefing.
"Our toolbox is plentiful, and we will be fully prepared."
Asked specifically about China's reliance on exports, Wang suggested the government was preparing policies to "further stimulate the momentum of our consumption development."
Beijing is battling to shift towards a growth model propelled more by domestic demand than the traditional key drivers of infrastructure investment, manufacturing and exports.
That desired transformation has become more urgent since Donald Trump came to office.
The US president has imposed tolls on China and most other major trading partners, upending trade norms and endangering Beijing's exports at a time it needs them more than ever to stimulate economic activity.
