To address weak domestic demand and the potential for a worsening trade war with the United States, China’s leadership is to meet to finalise plans to strengthen the economy in 2025.
Investors are keeping a close eye on the annual Central Economic Work Conference (CEWC) for indications of impending stimulus to boost growth, which has been impeded by weak consumer spending and an ongoing real estate crisis.
President-elect Donald Trump has pledged to impose harsh tariffs on China, and Beijing is bracing for four more years of tensions with the United States.
According to Bloomberg, which cited sources, the private economic meeting is anticipated to continue.
President Xi Jinping usually attends the conclave, which Beijing has not yet confirmed will happen in the last month of the year.
The event comes after the nation’s top decision-making body, the Politburo met officials and called for “vigorous” support for consumers in the upcoming year.
A “moderately loose” monetary policy was also called for by the top leadership in 2025, which analysts said was a significant departure from the “prudent” approach that had been used for more than ten years.
Beijing has announced a series of economic-boosting policies in recent months as they strive to meet this year’s growth target of about 5%. The nation was “fully confident” it would achieve that objective, according to Xi Jinping.
Among the policies are significant rate reductions, the relaxation of some home buying restrictions, and trade-in initiatives meant to increase consumption.
The meeting’s readout “leaves little doubt that the shift toward a more supportive policy stance that began back in September is still alive and well,” according to a note from Capital Economics’ head of China economics, Julian Evans-Pritchard.
“We do expect the (central bank) to step up the pace of rate cuts next year,” he added.