Editorial | China’s short-term moves to bolster growth today crucial for tomorrow

China is in the midst of a painful attempt to shift its economy away from reliance on traditional manufacturing and property sectors towards technology and services of the future.

Earlier this month, the Central Committee of the Chinese Communist Party set out crucial mid- and long-term goals to try to ensure the overhaul’s success and help the country escape the middle-income trap.

Still, all the well-meaning objectives in the world will be in vain if the economy is going off the rails today.

This would explain the urgency and focus of this week’s Politburo meeting, which wrapped up on Tuesday vowing to step up macro policies and stabilise market confidence to ensure the country achieves its full-year growth target of about 5 per cent for 2024.

The Politburo suggested more drastic policy support would be coming over the second half aimed at lifting the private sector and restoring investor confidence.

Details are to follow from the State Council, or cabinet, and central and local government departments. Economic data shows momentum is faltering, slipping from 5.3 per cent in the first quarter to 4.7 per cent in the second.

The 24-member Politburo, headed by President Xi Jinping, is therefore focused on the here and now. Among the weaknesses it noted was uneven growth. Guangdong province posted growth 1.1 percentage points below the national average.