China Signals Monetary Easing in 2025 to Bolster Economy
Amid economic challenges and international trade tensions, Beijing plans policy adjustments to stimulate domestic growth and stabilize its economy.
- Chinese leaders announced plans for a more proactive fiscal policy and monetary easing in 2025 to address slowing economic growth and weak domestic consumption.
- The move comes as the country continues to grapple with a real estate crisis, low consumer demand, and fears of deflation, with inflation rising only 0.2% in November year-on-year.
- The Politburo meeting highlighted the need to boost consumption, enhance investment efficiency, and expand domestic demand as key priorities for economic recovery.
- The announcement coincides with the anticipated return of Donald Trump to the U.S. presidency, who has pledged to increase tariffs on Chinese exports, heightening trade tensions.
- At an international economic summit, Premier Li Qiang warned of the risks of 'deglobalization,' citing rising trade barriers and restrictions affecting global economic stability.