Policy effort to bolster growth bears fruit

Stepping up policy support for the manufacturing sector will be necessary for China in the second half of the year in order to stabilize employment and ensure a steady growth trajectory amid lingering uncertainties, economists and analysts said.

Their remarks came as the latest data showed that earlier policy efforts to bolster economic growth have continued to bear fruit, with key indicators of China's manufacturing sector improving in June as production and market orders picked up.

However, they warned that the sector still faces mounting headwinds — including falling sales prices, rising receivables and intensified market competition amid faltering external demand — and these are weighing on employment and reinforcing the need for stronger policy buffers.