The Chinese economy is expected to hold up in the second half of this year cushioned by structural upgrades, as the government has the policy tools at its disposal to deal with domestic and external challenges, according to officials and economists.

Economic restructuring continued to see major improvements in the first five months, during which time emerging industries gained momentum, adding to the resilience of the economy, according to the Economic Operation Bureau with the National Development and Reform Commission.

China’s industrial sector is seeing solid growth momentum, according to the bureau, citing recent data for industrial output.

In the first five months, industrial output went up by 6.9 percent year-on-year, which is the same growth pace compared to the first four months of this year, according to the National Bureau of Statistics.

Industrial output measures the activity of large enterprises with an annual turnover of at least 20 million yuan ($3.1 million).

In May alone, high-tech and equipment manufacturing substantially outpaced the average in the whole sector, where production of new energy vehicles, integrated circuits, and robots went up by 56.7 percent, 17.2 percent, and 35.1 percent respectively, according to the NBS.

The nation’s economic growth expanded by 6.8 percent year-on-year in the first quarter, which is above the annual target of 6.5 percent, official data showed.

An official with the commission who declined to be named said the economy is expected to remain on the right track in the second half despite some uncertainty, as the government is prepared for downside risks and there are policy tools to smooth out downward pressure.

The commission is drafting materials analyzing current economic situations in different sectors and is preparing policy suggestions to tackle financial risks in the second half, according to the official.