With the stock market in turmoil, the economy in search of a new source of growth and looming uncertainties outside the country - it has been a scorching summer for China's policymakers.
As China prepares to release growth data for the second quarter on Wednesday, attention is trained on how the country has delivered on its pledge for a more balanced growth model and where the slowing economy is heading.
Analysts largely predict growth will slip below 7 percent for the April-June period as the effects of the successive pro-growth policies have yet to filter through.
While meeting with economists and entrepreneurs, Premier Li Keqiang stressed that China's long-term fundamentals have not changed even though structural conflicts having accumulated during years of unbridled expansion loom ever larger.
"China's economy still boasts remarkable tenacity, potential and flexibility," Li said.
There is little doubt China's potential for medium-high growth remains underpinned by such potential, he said.
Most analysts believe that momentum will gradually pick up in the latter half of the year thanks to monetary easing and expansionary fiscal policies. New policies should keep the economy on track to hit this year's growth target of around 7 percent.
NEW ENGINES EMERGING
The Chinese economy expanded 7 percent in the first quarter, its lowest level in six years.
To a certain extent, the latest slowdown is inevitable and desirable. More than three decades of break-neck growth, driven by over-reliance on exports and over-investment in sectors like real estate and factories, has left the country with vacant houses, idle factories and piling corporate debt.
The Chinese government wants to steer the economy toward a more sustainable long-term path. To do that, it has emphasized reforms and innovation as the new engines of growth.
A wide range of measures for emerging businesses have been unveiled, including financial support, facility construction and administrative assistance.
The endeavor seems to be garnering success. A start-up boom has taken place with more than 4.85 million new firms registered from March 2014 to May this year, equaling 10,600 per day or roughly seven every minute. There are increasing signs that innovation is being embraced as a source of competitive advantage and meaningful advances are emerging in fields ranging from mobile apps, consumer electronics and renewable energy.
To foster that trend, Premier Li reiterated that the country will continue with its innovation drive spearheaded by a growing army of entrepreneurs committed to innovation.
Of course the transformation process won't be easy. A majority of start-ups in the most recent wave are likely to end in failure. But for China to become a more sustainable economy, the painful efforts are inevitable -- the sooner, the better.
