Xi Says China Must Apply 'More Proactive' Macroeconomic Policies in 2025

This picture taken on December 16, 2024 shows a vendor arranging items as people shop in Harbin, China’s Northeastern Heilongjiang province.(Photo by ADEK BERRY / AFP)
This picture taken on December 16, 2024 shows a vendor arranging items as people shop in Harbin, China’s Northeastern Heilongjiang province.(Photo by ADEK BERRY / AFP)
TT

Xi Says China Must Apply 'More Proactive' Macroeconomic Policies in 2025

This picture taken on December 16, 2024 shows a vendor arranging items as people shop in Harbin, China’s Northeastern Heilongjiang province.(Photo by ADEK BERRY / AFP)
This picture taken on December 16, 2024 shows a vendor arranging items as people shop in Harbin, China’s Northeastern Heilongjiang province.(Photo by ADEK BERRY / AFP)

President Xi Jinping said China will put in place "more proactive" macroeconomic policies next year, state media reported, as he addressed a top political advisory body on Tuesday.

The country has struggled this year to climb out of a slump fueled by a property market crisis, weak consumption and soaring government debt.

Beijing has unveiled a string of aggressive measures in recent months aimed at bolstering growth, including cutting interest rates, cancelling restrictions on home buying and easing the debt burden on local governments.

But economists have warned that more direct fiscal stimulus aimed at shoring up domestic consumption is needed to restore full health in China's economy, AFP reported.

"We must... further comprehensively deepen reform, expand high-level opening up, better coordinate development and security, (and) implement more proactive and effective macroeconomic policies," state broadcaster CCTV quoted Xi as telling the National Committee of the Chinese People's Political Consultative Conference at a New Year's tea party.

Beijing is aiming for an official national growth target this year of about five percent, a goal officials have expressed confidence in achieving but which many economists believe it will narrowly miss.

"The new quality productivity develops steadily, and annual GDP is expected to grow by about five percent," Xi reiterated on Tuesday.

The International Monetary Fund expects China's economy to grow by 4.8 percent this year and 4.5 percent next year.

Xi's comments came as Chinese authorities released optimistic factory activity figures, a sign that recent stimulus measures may be starting to take effect.

China's Purchasing Managers' Index (PMI) -- a key measure of industrial output -- was 50.1 in December, marking a third consecutive month of expansion, the National Bureau of Statistics said on Tuesday.

The figure was lower than Bloomberg analysts' prediction of 50.2, but still above 50, which indicates an expansion in manufacturing activity.

A reading below that shows a contraction.

The key indicator slid for six months in the middle of the year before returning to expansion territory in October.

The non-manufacturing PMI, which measures activity in the service sector, came in at 52.2 in December, up from 50.0 in November.

"The official PMIs suggest that the economy gained momentum in December, driven by faster growth in the services and construction sectors," Gabriel Ng of Capital Economics wrote in a note to clients Tuesday.

"Increased policy support towards the end of the year has clearly provided a near-term boost to growth," Ng wrote.

Ng noted that export orders in particular rose to a four-month high in December, "probably helped by US importers ramping up orders in advance of potential Trump tariffs.”



China Seeks to Bolster Ports and Aviation Hubs in Western Regions

The city skyline is reflected in a pool left on the dry riverbed of the receding Jialing river, a tributary of the Yangtze, that is approaching record-low water levels during a regional drought in Chongqing, China, August 20, 2022.  (Reuters)
The city skyline is reflected in a pool left on the dry riverbed of the receding Jialing river, a tributary of the Yangtze, that is approaching record-low water levels during a regional drought in Chongqing, China, August 20, 2022. (Reuters)
TT

China Seeks to Bolster Ports and Aviation Hubs in Western Regions

The city skyline is reflected in a pool left on the dry riverbed of the receding Jialing river, a tributary of the Yangtze, that is approaching record-low water levels during a regional drought in Chongqing, China, August 20, 2022.  (Reuters)
The city skyline is reflected in a pool left on the dry riverbed of the receding Jialing river, a tributary of the Yangtze, that is approaching record-low water levels during a regional drought in Chongqing, China, August 20, 2022. (Reuters)

China said on Sunday it would launch 15 measures to bolster the development of its western provinces with the construction of logistical infrastructure such as ports and aviation hubs.

The General Administration of Customs said the measures would enhance the integration of rail, air, river and sea links in China's west, state media reported.

The measures are to include enhancing international aviation hubs in cities including Chengdu, Chongqing, Kunming, Xi'an and Urumqi, while developing comprehensive bonded zones, and integrating these with ports and other transport links.

A number of ports would also be built and expanded.

China has long sought to bolster the economic heft of its western regions, which have markedly lagged coastal provinces.

China's western regions comprise around two-thirds of the country's land area and include regions such as Sichuan, Chongqing, Yunnan, Xinjiang and Tibet.

China's Politburo last year called for a "new urbanization" of western China to revitalize rural areas, expand poverty alleviation efforts and strengthen energy resources. Efforts have also been made to increase linkages to Europe and South Asia through trade corridors including rail freight routes.