China unveils economic roadmap for 2025
China’s government has outlined its priorities for 2025, giving an insight into the direction of its economic planning for the coming year.
A policy announcement, unveiled at the recent Central Economic Work Conference, included the adoption of more proactive macro policies, measures to boost domestic demand and efforts to stabilize the property market. The government said the measures will support stable economic growth, safeguard jobs and consumer prices, boost people’s income and enhance China’s appeal to foreign investors.
Speaking at the China Economic Roundtable, hosted by Xinhua News Agency, economists shared insights on the key policy highlights and shared their anticipated impact on the Chinese economy and beyond.
While they acknowledged the intensified challenges posed by changes in the external environment and ongoing difficulties within the economy, China has committed to maintaining stable economic growth, the economists agreed.
Liu Rihong, an official from the Research Office of the State Council, told the roundtable meeting that by acknowledging its difficulties and challenges, China is confronting these issues head-on. “The economy has shown gradual improvement since the fourth quarter. With the convening of the conference and the continued impact of existing policies alongside new measures, I believe the overall upward momentum of the economy will further strengthen,” Liu said.
According to Xu Wei, a researcher with the Development Research Centre of the State Council, the Chinese economy has built significant advantages through long-term development, with new urbanization, green initiatives and digitalization continuing to drive demand. He noted that the economy has a solid foundation to withstand external uncertainties and achieve sustained recovery.
According to the meeting, China will adopt a more proactive fiscal policy and set a higher deficit-to-GDP ratio, increase the intensity of fiscal spending, increase the issuance of ultra-long special treasury bonds and local government special-purpose bonds, and optimize fiscal expenditure structure.
Liu expects the more proactive fiscal policy to be reflected in both scale and speed, noting that the measures outlined signal an increase in the scale of fiscal actions.
Huang noted that in addition to reducing reserve requirement ratios and bank interest rates, the loose monetary policy should also involve the innovation of financial tools aimed at channelling more capital into the development of new production facilities, industrial upgrades and green development, in line with the nation’s economic restructuring efforts.
The Central Economic Work Conference also heard that China considers expanding domestic demand a strategic move that can help the country cope with external shocks and ensure stable economic performance while enhancing the momentum for longer-term development.
Liu said the country should “strive to enhance people’s purchasing power and willingness to consume through various policy incentives, foster new drivers for consumption growth, and unleash the potential of domestic demand through reforms”.
Funds raised through ultra-long special treasury bonds to promote large-scale equipment upgrades and trade-ins for consumer goods will increase substantially next year compared to 2024, an official from the Office of the Central Committee for Financial and Economic Affairs told delegates.
Stabilizing the real estate market
As one of the key tasks for 2025 outlined at the meeting, China vowed to intensify efforts to reverse the downturn and stabilize the real estate market, which is already showing positive signs of stabilization.
Detailed policies include advancing the renovation of poorer urban areas, reasonably controlling the supply of newly added real estate land, making good use of existing land resources as well as commercial and office properties, fostering a new development model for the real estate sector and establishing relevant foundational systems in an orderly manner.
These policies will contribute to sustaining the momentum of improvement in the market, and further enhance market confidence and development impetus, said Liu Lin, a researcher with the Chinese Academy of Macroeconomic Research.
Against the backdrop of rising unilateralism and protectionism in the world economy, China, a major trading partner of more than 150 countries and regions, vowed to expand high-standard opening up while keeping foreign trade and foreign investment stable next year.
Amid efforts to expand foreign investment, the country will expand the pilot programs in opening up such fields as telecommunications and healthcare, while steadily advancing the opening of service sectors including internet and culture, according to the Office of the Central Committee for Financial and Economic Affairs.
