China's National Congress Approves Economic Strategy to Counter Trade Pressures

Beijing outlines plans to boost domestic consumption, stabilize real estate, and advance AI development as U.S. trade tensions escalate.

China's National People's Congress concluded with near-unanimous approval of government plans to address economic challenges, including a projected 4% budget deficit increase.
Beijing announced a 300 billion Yuan ($38 billion) incentive program to encourage domestic consumption by offering rebates on new devices and vehicles.
Efforts to stabilize China's troubled real estate sector include measures to ensure timely completion of housing projects and provide local governments more flexibility in managing distressed developments.
The government will prioritize investment in high-tech industries, particularly artificial intelligence, with plans to expand large-scale AI applications and support innovation in smart vehicles and robotics.
China increased its 2025 defense budget by 7.2%, allocating 1.78 trillion Yuan ($225 billion), citing regional security concerns and technological self-reliance in military production.