The announcement also comes a month before the return to the White House of Donald Trump, who has threatened to raise US tariffs on Chinese exports at the risk of undermining an engine of Chinese growth.
The 24 members of the Political Bureau of the Communist Party Central Committee, a key decision-making body, met on Monday to “analyze and study” future economic measures in 2025, according to state news agency Xinhua.
“We have to strongly stimulate consumption, improve the efficiency of investments and globally expand domestic demand,” the leaders declared.
“Next year, we should (…) apply a more proactive fiscal policy and an adequate easing of monetary policy,” they added.
It is the first time that members of the Political Bureau have used that term since 2011, according to SG Markets experts.
This change in tone caused euphoria in the markets, which were awaiting any sign of greater economic stimulus from Beijing: on the Hong Kong Stock Exchange, the Hang Seng index rose around 3% shortly before closing.
This intention “shows that the government recognizes the urgency of the economic challenges facing China,” according to SG Markets.
The world’s second-largest economy is still trying to avoid the specter of deflation, triggered by a serious housing crisis and consumption levels far below those seen before the pandemic.
For several months now, Beijing has multiplied plans to stimulate the economy, including a reduction in interest rates and an increase in the debt ceiling for local governments.
In October, the central bank also announced the cut of two key interest rates to historically low levels.
