Economic Context - The July 2025 meeting of the Central Political Bureau emphasized the integration of high-quality development with short-term economic growth amidst uncertainties in foreign trade and domestic demand[1] - The GDP growth rate for the first half of 2025 reached 5.3%, laying a solid foundation for achieving annual economic goals[2] Domestic Demand and Investment - The meeting highlighted the need to effectively release domestic demand potential, focusing on expanding consumption and improving living standards[3] - It was proposed to increase effective investment and promote high-quality urban renewal projects to address the "involution" phenomenon in competition[3] Supply System and Policy Adjustments - Technological innovation was identified as a key solution to escape homogeneous competition and support high-quality development[4] - The meeting called for market-oriented regulatory measures to optimize competition and manage excess capacity in key industries[4] Macroeconomic Policy Outlook - The macroeconomic policy is expected to be adjusted to enhance flexibility and responsiveness, with a focus on implementing effective fiscal and monetary policies[6] - The government aims to accelerate the issuance and utilization of bonds to improve funding efficiency and maintain liquidity[6]

Core Viewpoint - The European Central Bank (ECB) Governing Council member Knot indicates that short-term economic growth and inflation risks are skewed to the downside [1] Economic Growth - The ECB is facing challenges in maintaining economic growth due to various factors impacting the Eurozone [1] - Short-term forecasts suggest a potential slowdown in economic activity, which may affect overall growth rates [1] Inflation Risks - Inflation risks are also perceived to be on the downside, suggesting that inflation may not rise as previously anticipated [1] - This could lead to adjustments in monetary policy as the ECB responds to changing economic conditions [1]