More active fiscal policy will keep growth on track

That the fiscal policy is to "become more active" should by no means be taken as an indication the government will resort to a deluge of stimulus policies, since to do so would only swell debt and increase the pressure on the economy.

A statement issued after a meeting of the State Council on Monday, which was presided over by Premier Li Keqiang, indicates that policy fine-tuning will be undertaken to ensure the economy continues to grow within a reasonable range by boosting the development of the real economy and supporting domestic demand.

That its pace of growth has stayed within the range of 6.7 to 6.9 percent for 12 straight quarters by the end of June reflects the resilience of the Chinese economy. And with consumption contributing 78.5 percent of the growth in the first half of the year according to the National Bureau of Statistics, it is successfully being weaned off its reliance on exports for growth.