China Prioritises Consumer Spending Ahead of Technology as Economic Worries Weigh
China is shifting its focus to boosting consumption in 2025, promising a special action plan to stimulate domestic demand and meet its 5% growth target. The country's household spending remains less than 40% of annual economic output, significantly lower than the global average. Beijing aims to support big-ticket consumer items through an expanded trade-in scheme and issue ultra-long special treasury bonds.
- By prioritizing consumption, China is attempting to address a key weakness in its economy, where domestic demand has historically been slower to recover from downturns.
- How will this shift in focus impact the country's long-term economic growth trajectory and its ability to stay competitive with other major economies?