Bolder stimulus will drive China’s growth amid risks

Significance Officials announced that boosting domestic demand was the top economic task for 2025 and that the government would adopt a proactive fiscal stance and accommodative monetary settings to achieve this goal, cushioning the economy from the likely impact of the incoming US administration’s policies. Impacts The government will push for industry consolidation in cement, steel and green technologies, to address concerns about overcapacity. The renminbi will likely be allowed to depreciate to offset the effects of projected US tariffs, helping to cushion the blow to exporters. Household appliance and automotive sellers will benefit from another year of consumer subsidies. Other products such as consumer electronics could be added to the consumer goods trade-in programme. Industrial machinery, hardware and software suppliers will benefit from increased demand under the industrial equipment upgrading programme.