China Signals Major Economic Policy Shift for 2025

Beijing pivots to 'moderately loose' monetary policy and escalated fiscal measures to counter economic challenges and looming U.S. trade tariffs.

China's leadership has shifted its monetary policy stance from 'prudent' to 'moderately loose,' marking the first such change in 14 years.
The annual Central Economic Work Conference is underway, where officials will finalize policies for 2025, focusing on domestic demand and economic stability.
Beijing is preparing to increase fiscal spending, potentially raising its budget deficit to 4% and issuing more government bonds to stimulate growth.
Economic measures aim to address weak consumer demand, a prolonged property crisis, and the anticipated impact of U.S. President-elect Donald Trump's proposed tariffs on Chinese goods.
Analysts caution that while the policy shift signals urgency, large-scale stimulus akin to the 2008 financial crisis is unlikely due to China's high debt levels and structural economic challenges.