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

BEIJING – Top Chinese officials stressed on Friday that China would focus on its own affairs in the face of escalating trade tensions.

“As long as we do our part well, we can ensure the smooth operation and steady progress of the country's economy.” Han Wenxiu, deputy director of the Financial and Economic Affairs Office of the CPC Central Committee, told reporters in Mandarin.

He listed three key areas: stable and healthy development of the real estate market, accelerating the development of “emerging industries and future industries” and expanding domestic demand, especially consumption.

Han Zheng answered a question about how China will support economic growth amid rising trade tensions. he used one This sentence comes from the mouth of Chinese President Xi JinpingIn recent years, he has been calling on the country to “do its own thing” and focus on its own affairs.

The press conference was held after the high-level policy meeting of the Third Plenary Session of the Central Committee of the Communist Party of China that ended on Thursday. While the final resolution has not yet been released (it is expected to be in the coming days), the initial communiqué called for promoting domestic technology development and achieving full-year economic targets.

“External uncertainty has increased, but it will not affect China's determination and confidence to continue to deepen reforms and expand opening-up,” Mu Hong, deputy director of the Comprehensive Deepening Reform Office of the CPC Central Committee, told reporters on Friday.

China uses “reform and opening up” to describe its policy of gradually opening its economy to foreign and private capital over the past 40 years, as well as other changes to the communist country.

After decades of rapid economic growth, China's expansion has slowed. Second-quarter GDP growth was weaker than expected, prompting some analysts to call for more stimulus if the country is to hit its full-year growth target of around 5%.

While exports have been a growth driver, sluggish real estate and sluggish consumption have weighed on the economy. Beijing's long-term efforts to develop advanced technologies have yet to fully offset the drag on these industries.

Han Yishi Director of the Office of the Central Rural Work Leading GroupFriday acknowledged the “systemic impact” of real estate on the Chinese economy. He said China would continue to work on digesting existing housing stock while “optimizing” new construction and delivering pre-sale housing.

Real estate investment fell by 10.1% in the first half of the year, and residential sales fell by more than 20% year-on-year.

In a separate response on Friday, Han said the economy faces some challenges and called for “stronger and more effective macro policies.” He did not specify a timetable.

Han Zheng introduced the outline of the plenary meeting's resolutions, which include improving the macroeconomic governance system and further promoting the integration of urban and rural development.

“We must ensure that (the resolution) is implemented and effective,” he said at the end of his opening remarks.

—CNBC’s Sonia Heng contributed to this report.