to boost domestic demand, with the services and construction sectors teetering on the brink of contraction.convened last week, but investors were underwhelmed by proposals to expand consumption in the automobile, real estate and services sectors as well as extend loan support tools for small and medium-sized enterprises until the end of 2024.
As many of China's major markets grapple with higher borrowing costs amid a battle to bring down soaring inflation, authorities in Beijing are walking a tight rope in trying to boost domestic consumption without easing monetary policy too much lest it triggers large capital outflows. Imports are expected to have shrunk by 5.0%, after a fall of 6.8% in June, reflecting slightly improved domestic demand.
But South Korean exports to China, a leading indicator for imports to the Asian giant dropped 25.1% in July from a year earlier, the sharpest in three months. The median estimate in the poll indicated only marginal change in China's trade surplus, with analysts predicting it will come in at $70.60 billion, compared with 70.62 billion in June.Reporting by Joe Cash; Polling by Anant Chandak and Susobhan Sarkar in Bengaluru Editing by Shri NavaratnamJoe Cash reports on China’s economic affairs, covering domestic fiscal and monetary policy, key economic indicators, trade relations, and China’s growing engagement with developing countries.