China’s top leadership has emphasized its commitment to economic stability and high-quality development through technological advancements in 2025, as discussed during a Politburo meeting on Friday. The 24-member decision-making body of the Communist Party highlighted plans to implement proactive macroeconomic policies, boost domestic demand, and enhance the integration of technology and industrial innovation, according to a report from Xinhua.
In addition to economic growth, the government reaffirmed its focus on stabilizing the real estate and stock markets, improving living standards, and advancing high-level economic openness.
“[We will] mitigate and manage risks in key sectors, counter external shocks, stabilize expectations, stimulate market vitality, and sustain economic recovery,” the Politburo’s statement noted.
The announcement coincided with comments from U.S. President Donald Trump, who stated on Thursday that tariffs on Chinese imports would not only begin at 10 percent on Tuesday as initially planned but would double to an effective rate of 20 percent.
On Saturday, U.S. President Donald Trump approved a memorandum titled “America First Investment Policy,” instructing authorities to deploy all available legal tools to restrict Chinese-linked investments in vital U.S. industries.
A key focus of the Politburo meeting was reviewing the government work report, which Premier Li Qiang is expected to present at the upcoming NPC session. This report will outline China’s economic targets and priorities for the final year of the 14th Five-Year Plan.
China’s economy expanded by 5 percent last year, supported by strong exports and economic stimulus efforts introduced in late September. However, challenges persist, including weak consumer spending, a prolonged downturn in the property market, demographic shifts, and declining business confidence.
On February 17, President Xi Jinping held a high-profile meeting with leading entrepreneurs, reaffirming his support for the private sector. He encouraged businesses to take on a greater role in driving technological innovation, especially as competition with the U.S. intensifies. This was Xi’s first major engagement with private-sector representatives since 2018. A series of regulatory crackdowns and anti-monopoly investigations since 2021 have impacted business confidence, reducing local government revenue and raising youth unemployment.
To improve market sentiment, the government has been working to lower investment barriers and revise restrictions on private-sector market access. It has also taken steps to limit excessive regulatory enforcement, with a new draft law on private-sector promotion aiming to prohibit arbitrary fines on businesses without clear legal justification.
Another priority for policymakers this year is strengthening domestic demand, especially given the potential for escalating tariff tensions with the U.S. As a result, China is expanding its consumer trade-in program to include more home appliances and digital devices. Additionally, Premier Li has pledged efforts to raise household incomes to stimulate domestic consumption.
The government also aims to create a more consumer-friendly environment by cracking down on fraudulent practices, substandard products, and other factors that undermine consumer confidence.
