Share this article:XBlueskyFacebookGet Article LinkCommunist Party officials agreed to increase public spending as President Xi Jinping acknowledged in remarks carried by state media that the economy faces “some difficulties and challenges.” The move comes after China’s economy grew 4.3 percent year-over-year in the second quarter, its slowest pace in three years and below the government’s annual growth target. China’s economy is experiencing a protracted housing market slump, and while there was a jump in China’s exports this year, economists say manufacturing and exports alone cannot sustain long-term growth. As Mary Gallagher wrote in her WPR column in March, Beijing’s broader economic strategy remains focused on the supply side, particularly high-end manufacturing and technology. “Those hoping for a major shift toward domestic consumption or structural reform are likely to be disappointed,” Gallagher argued.