China’s economy shows promise but faces hurdles

China’s economy is on an upward path, with growing confidence, but it still grapples with significant challenges, according to the People’s Bank of China (PBOC). The central bank noted that the global environment is becoming tougher, with slower worldwide growth, rising trade barriers, and uneven economic performance among major countries. These factors, combined with new U.S. tariffs on Chinese goods, are putting pressure on China’s economy.

At home, the situation isn’t much easier. The PBOC highlighted that demand within China remains weak, prices are staying low, and there are hidden risks that could cause trouble. Despite these issues, the bank is committed to acting quickly to support the economy. It plans to adjust its policies based on changing local and global conditions, ensuring there’s enough money flowing to keep things stable.

The PBOC also aims to strengthen its efforts to balance economic cycles and support growth. Recent data shows some positive signs. Retail sales in May were stronger than expected, offering a brief boost despite U.S. trade tensions. However, ongoing problems like deflation and a struggling housing market could slow progress. The central bank’s focus is on addressing these challenges while keeping the economy on a steady path forward.