China has committed to implementing a more proactive fiscal policy and a moderately loose monetary policy as it approaches 2025, aiming to boost growth amid economic challenges. The Politburo's recent meeting underscored the focus on enhancing manufacturing through scientific and technological innovation and building a modern industrial system. This move comes in response to sustained domestic challenges, including weak consumer spending and a declining housing market, as well as external pressures from tariffs.
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The incoming Trump administration is expected to impose additional tariffs, a development that has prompted China to bolster its efforts to mitigate risks. The country plans to expand trade openness, stabilise foreign investments, and address potential vulnerabilities in key sectors. Earlier this year, China's central bank significantly eased monetary policy by cutting interest rates and injecting 9 trillion yuan (US$140 billion) into the economy to counteract these strains.
Additionally, China has taken retaliatory measures against the U.S. in response to restrictions on its semiconductor industry. It announced an investigation into Nvidia for suspected breaches of its anti-monopoly laws, though no specific details were provided regarding the alleged violations. This move further reflects the tense economic and technological relations between the two countries.
Source: www.furnituretoday.com