On track to attain 2024 growth goal

A statement released after the plenum said China will promote high-quality development, build a fairer and more dynamic market environment, improve the existing institutions and mechanisms for fostering new quality productive forces, and further enhance high-standard opening-up.

Svein R. Tyldum, chief executive officer, Marsh McLennan North Asia, a consultancy, said China's economy has made a good start this year with positive factors, laying a foundation for achieving its annual growth target of around 5 percent this year.

"China is a significant source of innovation and talent, and a future competitive global competitor," he said on the sidelines of the 15th Annual Meeting of the New Champions, also known as the Summer Davos Forum, which concluded in late June in Dalian, Liaoning province. "China's pursuit of high-quality drivers of production and its economic development created greater cooperation space for companies around the world to work together in a more harmonious way."

He expressed optimism about China's economic prospects and the company's operations in China this year and beyond, saying China is Marsh McLennan's second-largest operation in Asia. The company is committed to the China market, with more investment plans in the pipeline.

Tyldum noted the broader economy is still facing mounting uncertainties from the external environment and the structural challenges. "The foundation for economic stability and improvement is not yet so solid."

Data from the National Bureau of Statistics showed that China's economy grew by 5 percent year-on-year in the first half of this year, which is consistent with the government's around 5 percent annual growth target set at the beginning of the year. But in the second quarter, China's GDP grew by 4.7 percent year-on-year, cooling from 5.3 percent growth in the first quarter.

China's economy is still facing pressures from lackluster demand, mainly due to a market correction in real estate, still-weak retail spending and the modest growth in infrastructure investment, said Sun Xuegong, director-general of the department of policy study and consultation at the Chinese Academy of Macroeconomic Research, which is part of the National Development and Reform Commission.

China's property investment in the first half fell 10.1 percent year-on-year but was flat relative to the figure for the first five months. Sales area of new properties slumped 19 percent year-on-year in the first half, narrowing from a 20.3 percent decline in the first five months, NBS data showed.

Retail sales, a key measure of consumer spending, grew by 2 percent year-on-year in June, down from the 3.7 percent growth in May.

Against such a backdrop, the policy focus should be placed on boosting domestic demand, spurring consumer sentiment and expanding effective demand, including moves to further stabilize the housing market and strengthen the social security system, Sun said.