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A man holding a boy walks past the Forbidden City in Beijing on August 22, 2018. WANG ZHAO | AFP | Getty Images China's state planner head has warned the economy faces increased risks
in the second half of this year and that greater effort would be needed for policymakers to hit economic development goals as external challenges intensify. "Targets in economic growth,
employment, inflation and exports and imports can be achieved through effort," He Lifeng told the standing committee of the National People's Congress on Tuesday, according to a
statement on the National Development and Reform Commission's website. "But to achieve growth goals in consumption, outstanding total social financing and urban disposable income
will require bigger effort." He attributed the increasing difficulties to long-term structural challenges in the economy and risks from the external environment. China's economy is
starting to cool with data in the past few months showing investment growth slowing while retail sales growth and disposable income growth have also remained soft. And with U.S. trade
tariffs clouding the outlook to growth, Chinese policymakers are shifting their priorities to reducing risks to growth. To cushion the economy and revive investment, China has sped up
infrastructure spending and kept liquidity in the financial system ample. It has also offered assistance to companies struggling with the high costs of and access to financing. However, the
growing stimulus and easier credit have raised fears that Beijing is putting its efforts to reduce debt risks in the economy on the back burner. He said China will continue to deleverage the
economy but control the pace and intensity of these efforts, echoing a central bank pledge that the country won't resort to strong stimulus to prop up growth. "China is determined
to resolve problems with the property market... and resolutely curb rises in property prices," said He. He also said safeguarding employment remained a priority, and that authorities
are closely watching price changes and market demand and supply of important products. On trade, He said China should explore more diversified markets to stabilise foreign trade and boost
imports. In July, the state planner pledged to prevent trade friction with the United States from leading to large-scale unemployment. China's urban survey-based jobless rate rose to
5.1 percent in July from 4.8 percent in June. The government aims to keep the rate below 5.5 percent this year.