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MNI China Press Digest July 29: H2 GDP, Investment, Sino-U.S.

MNI (Singapore)

The following lists highlights from Chinese press reports on Friday:

  • China’s priority in the second half of the year is to ensure the economy returns to its potential growth rate, with analysts expecting about 5.5% or even above 6% growth in H2 should the pandemic keep under control and pro-growth policies continue to kick in, the 21st Century Business Herald reported citing analysts. Top policymakers urged to "strive to achieve the best result" for GDP growth in the politburo meeting on Thursday, compared to the previous meeting in April that urged to “meet the expected goals of economic and social development throughout the year”, the newspaper said. It is objectively challenging to achieve the annual growth target of 5.5% as output was sapped in H1, though policymakers still urged major economic powerhouses to meet the expected annual goals, the newspaper said.
  • China’s infrastructure investment growth rate may further accelerate to about 13% y/y in H2 from H1’s 7.1%, which would bring its annual growth to 10% and drive 2022 GDP by around 1 percentage point, the 21st Century Business Herald reported citing Wang Qing, chief macro analyst of Golden Credit Rating. China could front-load next year’s local government special bond quota to H2 to support construction or tap into the accumulated remaining quota in previous years, the newspaper cited analysts. Data by the Ministry of Finance shows the balance of special bonds is CNY16.7 trillion as of 2021, while the special debt limit is CNY18.2 trillion, leaving a debt space of CNY1.5 trillion, the newspaper said.
  • Chinese President Xi Jinping warned his U.S. counterpart Joe Biden that China firmly opposes separatism and “interference by external forces” in Taiwan in a “candid” Thursday call, Xinhua News Agency reported. Xi also emphasized that both sides should maintain communication on macroeconomic policy coordination, maintaining the stability of global supply chains, and safeguarding global energy and food security, Xinhua said. The two heads of state agreed to keep in touch, and instructed the working teams to continue communication and cooperation, Xinhua said.

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