BEIJING China will step up macroeconomic policy adjustments and focus on expanding domestic demand, the Politburo, a top decision-making body of the ruling Communist Party, said on Monday, the state-run Xinhua news agency reported.

The economy faces new challenges and the post-pandemic recovery will be tortuous, Xinhua reported following a Politburo meeting chaired by President Xi Jinping.

"Currently, China's economy is facing new difficulties and challenges, which mainly arise from insufficient domestic demand, difficulties in the operation of some enterprises, risks and hidden dangers in key areas, as well as a grim and complex external environment," Xinhua cited the Politburo as saying.

Top leaders pledged to "intensify macroeconomic policy adjustments, focus on expanding domestic demand, boosting confidence and preventing risks, and continuously promote the improvement of economic operations," Xinhua said.

China will implement its macro adjustments in a precise and forceful manner as the government sticks with a prudent monetary policy and pro-active fiscal policy, the Politburo was quoted as saying.

China will adjust and optimise property policies at an appropriate time, while also effectively prevent risks in local government debt, Xinhua said.

The government will boost consumption of auto, electronics and household products and promote tourism consumption, Xinhua added.

(Reporting by Ellen Zhang, Kevin Yao, Joe Cash, and Beijing newsroom; Editing by Jacqueline Wong)