A performer dances at the Hetou Old Street scenic area in Fengnan district, Tangshan, North China's Hebei province, July 15, 2026. [Photo/Xinhua]
With weak domestic demand still weighing on growth, China is likely to intensify policy efforts to boost investment and consumption in the coming months, economists said ahead of a highly anticipated mid-year meeting that will set the economic agenda for the remainder of the year.
The meeting, traditionally convened in late July, comes after a mixed first-half performance in which the economy grew 4.7 percent year-on-year — within the government's full-year target range of 4.5 to 5 percent — but lost momentum in the second quarter, slipping to 4.3 percent growth.
The economy has exhibited a pronounced K-shaped divergence as high-tech manufacturing and artificial intelligence-driven exports have outperformed, while consumption, real estate and traditional industries have lagged, said Robin Xing, chief China economist at Morgan Stanley.
While AI and high-tech sectors have been bright spots, Xing cautioned that their current scale "remains insufficient to fully offset the contraction in traditional industries".
