Policymakers should be extremely careful about the likelihood of fiscal and monetary incentives inflating the level of public debt.

China's GDP growth slipped slightly to 6.2 percent year-on-year in the second quarter of 2019, down from 6.4 percent in the first quarter, according to the National Bureau of Statistics.

Investments showed weakening but were stable on a quarterly basis. Fixed-asset investment growth increased 5.8 percent in the first half of the year, down from 6.3 percent in the first quarter.

Although manufacturing-investment growth slowed to 3 percent in the first half from 4.6 percent in the first quarter, high-tech services investment rose 13.5 percent year-on-year during that period. In terms of foreign trade, after the trade talks with Washington broke down and it threatened to apply higher tariffs on Chinese goods, China's exports to the United States slowed.

However, China's total foreign trade expanded at a stable pace of 3.9 percent year-on-year in the first half of the year. Trade growth with the Belt and Road countries was even more encouraging, growing by 9.7 percent year-on-year, according to the General Administration of Customs. Consumption contributed 60 percent of economic growth in the first half, down from 76 percent in the whole of 2018.

Recorded in the second quarter are an increase of 8.4 percent year-on-year in retail sales and the increase of 17.8 percent year-on-year in online sales, 2.5 percentage points faster than the previous period.

Admittedly, the fallouts from the external and domestic economic situations have caused China's economy to undergo a period of volatility, with the GDP growth in the second quarter its slowest in recent years. However, China's economy continues to grow on a sound footing within a reasonable range, with increasing innovation and declining energy use.