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"On the demand side, it would be important to boost consumer confidence. It is important to increase salaries but this is difficult due to stationary productivity," she added.

The drill will consolidate and develop the China-Russia comprehensive strategic partnership of coordination, deepen pragmatic and friendly cooperation between the two militaries, and enhance the capabilities of the two navies to jointly deal with maritime security threats, Yang said.

There are high hopes for this year's summit, as it seeks a transformation from crisis response, which focused on short-term policies, to one of long-term governance, which shapes medium- to long-term policies.

China's economy made progress while remaining stable in general terms in the first half of the year, Xi said.