Despite the many difficulties and downward pressure, the Chinese economy is still within the reasonable range. The Chinese economy is deeply integrated into the global market. Given the weak growth of the global economy, China could not stand unaffected. Meanwhile, the deep-seated problems that have built up over the years are thrown into sharper relief. The Chinese economy is in the state of a new normal. It is going through a transition with traditional drivers being replaced by new ones. The extensive model of growth in the manufacturing sector is giving way to more intensive production. And over-reliance on investment is abandoned for greater balance between consumption and investment. This is a painful and challenging process. Ups and downs in growth are hardly avoidable, as they are natural in a period of adjustment and transition. To borrow a concept from traditional Chinese medicine, they are the "pulse" that shows the health of the economy. Over the last two months, we have seen a slip or fluctuation in certain indicators. Yet, the policies and measures adopted in the previous stage are starting to pay off, and positive factors are building up in the economy, hence the upward trend in certain indicators. The fundamentals underpinning a stable Chinese economy have not changed. The ups and downs in the economy may have formed the shape of a curving wave, but the underlying trend remains to be positive. We will not be swayed by short-term fluctuations in economic performance, nor will we take it lightly.
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