China defends 4.7% GDP as in line with potential, prioritising quality over the number
Macro
China has taken the relatively unusual step of defending its economic conditions, saying that gross domestic product growth of 4.7% in the first half of 2026 represents high-quality expansion consistent with the economy's potential. People's Daily, the mouthpiece of the Communist Party of China, published opinion pieces on three consecutive days under the pen name Zhong Caiwen, which is believed to be used by the Central Financial and Economic Affairs Commission. The articles pointed out that the figure remains within the government's growth target range of 4.5% to 5%, the lowest target in more than two decades. They said officials should not obsess over quarterly or monthly fluctuations because the Chinese economy is transitioning to new growth drivers, and Beijing is prepared to accept slower short-term growth to lay long-term foundations. Chinese authorities acknowledged that the imbalance between strong supply and weak domestic demand remains a serious problem, but insisted they will avoid high-debt and high-deficit approaches to prop up growth, while signalling there is still ample room for additional support measures.
