China’s Politburo promises ‘active’ moves to bolster domestic demand in 2025

China will adopt a “more active” set of policies to expand domestic demand in 2025, the country’s Politburo – a major decision-making body of the Communist Party – said following a meeting on Monday.

The integrated development of technology and industry will be supported and the property and stock markets will be stabilised, according to the official Xinhua News Agency.

Strong supportive language from the meeting indicates a determination to buoy China’s economic growth, as many had expected the world’s second-largest economy to set its 2025 target for gross domestic product growth at around 5 percent – the same benchmark as this year.

“The main goals for economic and social development throughout the year will be successfully completed,” read the meeting’s summary statement.

Per the statement, China will implement a “more” proactive fiscal policy and a “moderately loose” monetary policy – a shift in rhetoric from “prudent”, previously a frequent descriptor of the outlook for central bank policy.

According to a note from Huatai Securities, this is the first time since 2001 that China’s authorities have used “more active” to describe the overarching strategy for fiscal policy.