Hannes Fellner Photo: Courtesy of Hannes Fellner

The Communist Party of China (CPC) Central Committee Political Bureau meeting on Wednesday analyzed and studied the current economic situation and made arrangements for economic work in the second half of this year, Xinhua News Agency reported. 

As the key meeting set tone for the economic work in the second half of the year, expectations are high that China will further consolidate its position for a stable and high-quality growth trajectory through the second half of the year - an approach designed not only to serve China's own long-term interests but also to contribute positively to global economic stability and offer renewed momentum for the Global South.

Despite a turbulent global environment, China's macroeconomic performance in the first half of 2025 has surpassed expectations. Key indicators point to strong resilience and dynamic momentum within the world's second-largest economy, bolstered by robust domestic fundamentals and responsive policy frameworks.

Looking into the second half, the outlook remains optimistic. Sustained momentum in digital infrastructure, advanced manufacturing, and green energy is to be expect in line with the development of new quality productive forces. For instance, China's new-energy vehicle (NEV) exports surged 75.2 percent in the first half of the year, underscoring the country's competitive edge in sustainable technologies. The smart manufacturing sector also saw robust growth, reflecting structural improvements driven by automation and AI integration.

Moreover, rural revitalization, real estate market stabilization, and regional economic coordination through projects like the Chengdu-Chongqing economic zone are expected to provide balanced growth across provinces and regions. These efforts align with the broader strategy of promoting quality development rather than mere quantitative expansion.

The CPC Central Committee Political Bureau meeting has refined the policy roadmap for the second half of the year. With inflation remaining below 2 percent, interest rates staying steady, and public investment on an upswing China has significant room for maneuver. The policy space enables authorities to cushion external shocks, stimulate targeted sectors, and reinforce financial stability without triggering inflationary pressures.

The ongoing implementation of a more proactive fiscal policy and an appropriately accommodative monetary policy - such as the recent increase in special-purpose bond issuance and interest rate adjustments - have proven effective in maintaining liquidity and market confidence. This flexibility will be critical to navigating uncertainties posed by global geopolitical shifts and sluggish overseas demand.

Internationally, China's steady economic performance provides a stabilizing anchor amid global economic turbulence. Its continued emphasis on opening up and institutional innovation - demonstrated by the ongoing reform of free trade zones and digital trade mechanisms - enhances its global competitiveness.

Trade and investment ties with emerging markets, under initiatives like the Belt and Road Initiative and Regional Comprehensive Economic Partnership (RCEP), have gained strength, positioning China as a reliable partner and growth engine, especially in and for the Global South.

Furthermore, China's ability to stabilize supply chains, expand green exports, and lead in digital governance standards contributes to its increasing weight in setting the future standards of the global economy.

As China enters the final phase of the 14th Five-Year Plan (2021-25), it has made significant strides in innovation and green transformation, with its high-quality development model increasingly reflected in progress across major technologies, digitalization, and clean energy.

Looking ahead to the 15th Five-Year Plan (2026-30), emphasis is likely to be placed on deepening technological self-reliance, advancing common prosperity, and securing ecological modernization - priorities that not only support China's sustainable development but also contribute to broader global progress and shared benefits, particularly for the developing nations. 

Key focus areas will likely include: strengthening the digital economy, accelerating carbon neutrality efforts, nurturing strategic emerging industries (including AI, quantum computing, biotech), and enhancing social services like education, healthcare, and elderly care to address demographic shifts and evolving societal needs.

China's economic story in 2025 is one of resilience, adaptation, and forward-looking transformation. The better-than-expected performance in the first half not only reinforces confidence in its internal dynamics but also equips policymakers with greater leeway to shape sustainable outcomes.

As China looks beyond short-term fluctuations toward medium- and long-term strategic goals, its macroeconomic planning supports an integrated domestic-international development paradigm that stands as a model of pragmatic, steady, and people-centered qualitative growth in an era of global uncertainty.


The author is a full professor at the University of Vienna, a member of the Austrian Academy of Sciences, and Director of the Austrian Institute for China and Southeast Asian Studies. bizopinion@globaltimes.com.cn