Xi calls for proactive macro policies to keep China momentum

PRESIDENT Xi Jinping called for China to implement more proactive macroeconomic policies this year to maintain growth momentum, as the world’s No 2 economy could be facing new US tariffs.

The Chinese leader said the country should seek progress while maintaining stability. He also reiterated his call to promote high-level scientific and technological self-reliance, the official Xinhua News Agency reported on Monday (Jan 20), citing remarks at an event for the Lunar New Year in Beijing.

China’s economy grew more than expected in 2024, thanks to a late policy blitz and export boom. Gross domestic product rose 5.4 per cent in the last three months from the year before, exceeding most analysts’ forecasts and marking the fastest pace in six quarters. The jump brought full-year growth to 5 per cent. 

But concerns are increasing that policymakers may ease up on stimulus just as Donald Trump returns to the White House. He has threatened tariffs of as high as 60 per cent on Chinese goods, which could decimate trade and damage an expansion driver that contributed to about a quarter of growth in 2024.

China is set to announce its growth goal for 2025 at an annual parliamentary session in March. The target is likely to be similar if not identical to last year’s, based on provincial goals already announced. BLOOMBERG