Facing trade tensions, China says it will focus on its own economy

BEIJING – Top Chinese officials emphasized Friday that the country would focus on its own business amid rising trade tensions.

“As long as we do our own things well, we can ensure that the national economy can run smoothly and progress steadily,” Han Wenxiu, deputy director of the Chinese Communist Party’s Central Committee for Financial and Economic Affairs, told reporters in Mandarin. translated by CNBC.

He mentioned three areas of focus: the stable and healthy development of the real estate market, the accelerated development of “emerging and future industries” and growing domestic demand, “especially consumption.”

Han was responding to a question about how China would support growth in light of increased trade tensions. He used one phrase attributed to Chinese President Xi Jinpingwho in recent years has called on the country to ‘do its own thing well’ and focus on its own business.

The news conference followed the end of a high-level meeting policy called the Third Plenum, which ended Thursday. While the final resolution has yet to be released – and is expected in the coming days – the first communiqué called for boosting domestic technology and achieving full-year economic targets.

“External uncertainties have increased, but they will not affect China’s commitment and confidence in the continued deepening of reform and further opening up,” Mu Hong, deputy director of the party’s Central Committee for Comprehensive Deepening, told reporters. Reform,” to reporters on Friday.

China has used “reform and opening up” to describe policies over the past forty years that gradually opened up the economy to foreign and private capital, among other changes in the communist state.

After decades of rapid economic growth, China’s expansion has slowed. GDP growth fell short of expectations in the second quarter, prompting some analysts to call for more stimulus measures if the country is to reach its full-year growth target of around 5%.

While exports have held up as a growth engine, a slump in the real estate sector and subdued consumption have weighed on the economy. Beijing’s longer-term efforts to build advanced technology have not yet fully offset the drag on these sectors.

Han, who is too director of the Office of the Main Group of Central Rural Work, acknowledged on Friday the “systemic impact” of real estate on the Chinese economy. He said China would continue to work to absorb existing housing stock, while “optimizing” new construction and delivering pre-sold homes.

Real estate investments fell by 10.1% in the first half of the year, while home sales fell by more than 20% compared to a year ago.

Han said in a separate response on Friday that the economy faces some challenges and called for “stronger and more effective macro policies.” He did not specify a time frame.

Giving an introductory outline of the plenum’s resolution, Han said it included plans to improve the macroeconomic governance system and further integrate the development of urban and rural areas.

‘We must guarantee that [the resolution] has been implemented and effective,” he said at the end of his opening statement.

– CNBC’s Sonia Heng contributed to this report.