Core Viewpoint - The report emphasizes that "stability" is the primary objective for China's economy, which is projected to exceed 130 trillion yuan in 2024, amidst changing internal and external environments [1][11]. Policy Direction - The policy governance goal has shifted from "six stabilizations" to "four stabilizations" (stabilizing employment, enterprises, markets, and expectations), reflecting continuity and precision in policy focus [2][12]. - "Stabilizing employment" remains the top priority, with over 17.7 million new urban laborers and 12.22 million college graduates expected in 2025, indicating unprecedented employment pressure [2][12]. - The new policy framework integrates "stabilizing finance" into "stabilizing enterprises" and "stabilizing markets," focusing on the micro-foundations of economic operations [2][13]. Economic Operation - In the first half of the year, the economy achieved a growth rate of 5.4%, driven by export effects, infrastructure investment from local debts, and consumption subsidy policies [3][15]. - Exports from January to May increased by 6% year-on-year, supported by a rise in non-U.S. exports and a "grab export" effect [3][17]. - The economy faces multiple pressures in the second half, including weakened export momentum due to tariff uncertainties and sluggish recovery in the real estate market [3][35]. Key Areas: Export, Investment, and Consumption - Export enterprises are under pressure from policy uncertainties and challenges in transitioning from export to domestic sales [4][46]. - Investment remains necessary despite export pressures, with high savings supporting high investment, particularly in high-tech and infrastructure sectors [4][48]. - Consumption is a long-term issue, requiring measures to increase income and address consumption bottlenecks, with significant potential for service consumption growth [4][46]. Recommendations - To stabilize exports, the government should address information asymmetries and support enterprises in transitioning to domestic sales [5][46]. - For consumption and investment, enhancing the direct effectiveness of consumption subsidies and stabilizing the real estate and capital markets are crucial [5][46]. - Strengthening the internal economic momentum through policies that improve living standards and facilitate urbanization is essential [5][46].