Janice R. Andrews
China Plans Economic Reforms for 2025 Growth
President Xi Jinping has called for “more proactive and effective macroeconomic policies” to guide China’s economy in 2025, as reported by state media. In a speech to the National Committee of the Chinese People’s Political Consultative Conference during a New Year’s event, Xi stressed the importance of comprehensive reforms, greater openness, and better coordination of development and security.
This announcement comes after a tough year for China, marked by a property market crisis, sluggish consumer spending, and rising government debt. While Beijing has already implemented several aggressive measures, including cutting interest rates, easing restrictions on home purchases, and alleviating local government debt, economists argue that more direct fiscal stimulus is necessary to boost domestic consumption.
“We must further deepen reforms, open up more, and implement proactive economic strategies,” Xi stated, reaffirming the government’s commitment to revitalizing the economy.
Economic Struggles and Recovery Plans
China has set a 5% GDP growth target for 2024, which government officials remain confident of achieving, although economists suggest the country may miss the mark. The International Monetary Fund forecasts 4.8% growth for China this year, with a slightly lower projection of 4.5% for 2025.
Xi’s comments came alongside positive data on factory activity. The Purchasing Managers’ Index (PMI), an important indicator of manufacturing output, registered 50.1 in December, marking three consecutive months of growth. Similarly, the non-manufacturing PMI, which reflects service and construction sectors, rose to 52.2, signaling strong growth in these areas.
Gabriel Ng from Capital Economics noted that recent government policies had delivered a near-term boost, particularly in the service and construction industries. Export orders also rose to a four-month high in December, likely driven by US importers preparing for potential trade policy changes under Donald Trump.
Looking Toward 2025
China’s leadership is committed to overcoming current economic challenges and ensuring long-term growth. Xi’s proactive reform agenda aims to balance immediate recovery with broader, sustainable development.
With signs of improvement in manufacturing and services, 2025 could be a turning point for China’s economy as it pursues structural reforms and deeper global integration.
