Beijing, Dec. 9 (dpa/GNA) – China’s leadership has promised further aid for the country’s struggling economy next year, following a series of stimulus measures during 2024.
The state news agency Xinhua reported on Monday that the country’s Politburo, under the leadership of President Xi Jinping, had announced plans to pursue a “more proactive” fiscal policy for 2025.
This indicates that the state will spend more money in a targeted manner to boost the economy. The Politburo also spoke of a “moderate relaxation” of monetary policy, which is also seen as a measure to strengthen the economy.
The government presented an economic stimulus package in September to stabilize the economy. It included measures such as lowering the reserve requirement ratio for banks and mortgage rates, as well as support for the property and financial markets.
However, the lack of significant fiscal incentives was criticized by analysts, particularly direct support for households that could boost consumption.
China also faces the likelihood of new tariffs imposed by the US government. During his election campaign, Donald Trump frequently talked about introducing further high tariffs on all Chinese imports.
The Chinese economy is suffering from weak consumption, a real estate crisis and geopolitical tensions. Demand remains low while the debt-encumbered construction sector is hindering growth.
GNA