China's Politburo stays the course

Beijing signaled policy continuity while offering no major stimulus, as tensions with Washington continue to test the fragile U.S.-China truce

Welcome back to What’s Happening in China, your weekly China brief.

The Chinese Communist Party’s ruling Politburo held its July meeting this week. From the readout:

It is important to ensure that the Party remains a vibrant Marxist governing party that stays at the forefront of the times, enjoys the wholehearted support of the people, withstands all tests, and serves as the strong leadership core for building socialism with Chinese characteristics, the meeting said.

On the economy, the leadership signaled cautious support, without any major stimulus plan:

The meeting noted that macroeconomic policies should be more forceful and effective with a view to better advancing the implementation of major national strategies and enhancing security capacity in key areas, as well as promoting large-scale equipment upgrades and consumer goods trade-in programs. Monetary policy tools should be used comprehensively and adjusted in a timely manner, and policies to boost domestic demand via fiscal-monet…