In a move to further stimulate consumption, China will allocate 138 billion yuan for trade-in subsidies in the upcoming quarters, alongside new financial support measures for consumers.

In June 2025, China issued 527.1 billion yuan in new special bonds, achieving 49.1 percent of its annual quota to bolster fiscal policy initiatives.

Despite a positive economic outlook, uncertainties persist regarding US tariff policies, the stabilization of the real estate market, and the necessity for improved business and consumer confidence.

Second-quarter GDP growth is projected to remain stable, laying a solid foundation for achieving the annual growth target.

China's economic performance in the first half of 2025 demonstrated resilience, with exports growing 6 percent year-on-year despite US tariffs, bolstered by recent trade talks.

Domestic consumption has seen a significant boost, with retail sales rising 6.4 percent year-on-year in May 2025, driven by government stimulus and events like the '618' shopping festival.

The real estate market is showing signs of recovery, highlighted by increased transactions for new homes in major cities during June 2025, despite facing ongoing challenges.

Guangzhou is taking the lead in the real estate sector by proposing the removal of purchase, sale, and price restrictions to stabilize the market.

The People's Bank of China is committed to effective policy implementation without immediate interest rate cuts, emphasizing the need for flexibility in monetary policy.

Policymakers believe there is no urgent need for new stimulus measures, opting instead to optimize existing policies and maintain flexibility in fiscal and monetary strategies.

To address capital shortages for major projects, the government is introducing a new policy-based financial instrument, which is expected to enhance investment.