China's economy expands steadily in H1: official

A press conference focusing on China's economic performance in the first half of 2018 is held by the State Council Information Office in Beijing on July 16th, 2018. [Photo: meldingcloud.com.cn]

Statistics show China's economy extended a steady expansion in the first half of the year, well above the government's annual growth target.

China's gross domestic product (GDP) expanded 6.8% during the first half of 2018 to 41.8961 trillion yuan, or some 6.27 trillion U.S. dollars.

The pace was higher than the government's annual growth target of around 6.5%.

Mao Shengyong, spokesperson for the National Bureau of Statistics, says the Chinese economy has been running soundly in the first six months.

Mao Shengyong, spokesperson for the National Bureau of Statistics, speaks at a press conference held by the State Council Information Office in Beijing on July 16th, 2018. [Photo: meldingcloud.com.cn]

"The national economy has registered a stable performance with a good momentum for growth. Restructuring has seen further progress, drivers of growth have been replaced, the quality and efficiency have been improved steadily, offering a good start for the country's pursuit of high-quality development," says Mao.

The service sector expanded 7.6% in the first half, outpacing both primary and secondary industries.

Consumption continued to play a more prominent role in driving growth, with final consumption contributing to 78.5% of the economic expansion from January to June.

The nominal growth in China's resident income was 8.7% in the first six months, but after taking into consideration the effects of inflation, the country's average per capita disposable income actually grew 6.6% the first half of the year in real terms to 14,063 yuan.

Mao Shengyong says there have been more and more favorable conditions supporting China to achieve strong economic development, which will set up a good foundation for China to hit the social and economic target for the whole year.

However, the spokesperson also warns of the potential risks that the Chinese economy may face.

Mao Shengyong, spokesperson for the National Bureau of Statistics, speaks at a press conference held by the State Council Information Office in Beijing on July 16th, 2018. [Photo: meldingcloud.com.cn]

"The continuous rise of the global trade protectionism is imposing major challenges to the world economic recovery. Such a complex external environment has brought more challenges and uncertainties to us. Internally, we are still facing imbalance and instability in our economic growth, and the domestic structural adjustment is in a crucial stage as well," says Mao.

He says China will coordinate efforts to ensure a stable and sound economic performance.

"China will stick to the supply-side structural reform, continuously expand the domestic demand, invigorate the real economy, deal with the external challenges, defuse the potential risks, guide and stabilize social expectations, soundly coordinate efforts to stabilize the growth, boost reform, adjust structure, improve people's livelihood and prevent risks, in a bid to ensure that the economy moves stably and soundly," says Mao.

The spokesperson is confident that China's economy will stay sound and stable for the rest of the year, since consumption, investment and foreign trade are all expected to continue their stable, upward trend.