Sound Growth to be Secured

China secured hard-won economic growth of 2.5 percent in the first half of 2022. During the second half, the government will continue to ensure effective investment in expanding and upgrading infrastructure. The credit limit of policy banks will be loosened and more bonds will be issued to leverage investment estimated at 1.5 trillion yuan (US$220b). Investment in job-creation infrastructure projects is particularly encouraged. However, it is not easy to find projects that balance immediate demand for economic growth and long-term returns. Value-added tax refunds will be scaled up to direct more funds to ease tight cash flow for businesses, especially struggling small- and medium-sized enterprises. It is crucial to stabilize market expectations for long-term growth. Tertiary industry should also be boosted to increase job opportunities. Experts also propose handing out discount coupons to consumers and increasing financial liquidity for housing developers in difficulties.