Beijing vendor
A vendor is seen in her store at a supermarket in downtown Beijing, China, May 23, 2019. (Photo: REUTERS/Jason Lee)

China's fiscal revenue saw a spike of 3.4 percent from January to June, an official from Beijing's Finance Ministry revealed on Tuesday. Economists said the hike in revenues during the first half of 2019 clearly indicated how the Chinese government stepped up support for the economy.

According to Reuters, the government's fiscal spending increased by 10.7 percent during the first quarter as Beijing continues to cushion the consequences of the trade war. The government has been preparing for a slowing economy, analysts said.

During a media briefing, Liu noted that increased spending by the government helped provide "strong support for investment in key areas."

Despite Monday data indicating that the economy slowed down at its slowest pace yet in 27 years, the significant hike in fiscal revenue suggested that China is not going down without a fight.

As part of Beijing's efforts in supporting the Chinese economy amid the trade war with the United States, fund transfers to local governments were expedited. The goal was to help ease the burdens of local governments in terms of spending.

In a bid to encourage hope for a recovery during the second quarter of 2019, analysts urged local governments to improve real estate governance and the possibilities for growth developing cities that are safe and convenient for the Chinese people.

Many local analysts believe China still has a lot to prove and show in terms of economic expansion even if it is already the world's second-largest economy. While there are multiple aspects of the economy that need improvements, innovation and support for small and medium enterprises (SMEs) are believed to be two major keys towards advancement.

In terms of innovation, China is already in the lead. A report released by consultancy firm JLL revealed that three Chinese cities are in the list of Top 20 cities in terms of innovative reach. Beijing, Shanghai, and Shenzhen are in the competitive list that reflects the innovation drive in China.

"China's leading cities are poised to become increasingly important players in the global marketplace for information, innovation, and technology," director of global research at JLL, Jeremy Kelly, pointed out.

As for the SMEs sector, the newly-revised Law on Promoting Small and Medium-Sized Enterprises that was implemented last year proved to have excellent results for different segments.

Financial support for SMEs has been issued over the past year, with 77 percent of SMEs benefiting from the funding. There are now more fund-raising activities for SMEs in China and it is expected that these will increase in the coming years.