Economic Performance - China's GDP grew by 5.3% year-on-year in the first half of 2025, supported by consumption policies, investment from special bonds, and export resilience[10] - Nominal GDP growth was 4.3%, 1 percentage point lower than the actual growth, indicating a disparity in economic perception[2] - In June, exports increased by 5.8% year-on-year, with direct exports to the US declining by 16.1%, but the drop was less severe than in May[16] Consumption and Investment Trends - Retail sales growth fell from 6.4% in May to 4.8% in June, with significant drops in restaurant income from 5.9% to 0.9%[3] - Fixed asset investment growth decreased from 3.7% to 2.8% in the first half of the year, with real estate investment down by 12.9% in June[4] - Manufacturing investment growth slowed, reflecting a need for capacity reduction amid insufficient effective demand[23] Policy Recommendations - A "dual 5" target is suggested, aiming for both nominal and actual GDP growth to reach around 5%[12] - Emphasis on adjusting macroeconomic policies to prioritize nominal GDP growth and address employment and price stability[12] - Recommendations include expanding fiscal spending, supporting affected industries, and enhancing consumer incentives to stimulate demand[27][28]