China's Economic Strategy Set for Revamp as Politburo Plans Easing

China plans to adopt a looser monetary policy and more proactive fiscal measures to boost economic growth in 2025, marking its first significant policy easing in 14 years. The adjustment aims to address domestic demand issues and counteract potential challenges, including tariff threats from the U.S.

China is gearing up for a shift in its economic strategy with a plan to implement an 'appropriately loose' monetary policy next year, a move that signals the first major easing of its stance in over a decade. This change comes as part of a broader effort to stimulate economic growth through more proactive fiscal policies.

According to a Politburo meeting readout cited by state media Xinhua, the country will focus on unconventional counter-cyclical adjustments to expand domestic demand and boost consumption. Stocks surged, and China's government bonds saw a rally following the policy announcement.

In the face of a challenging global environment, including potential U.S. tariff hikes, China's policymakers aim to strengthen their policy toolkit and stabilize key markets such as housing and stocks, ensuring sustainable growth amidst external threats.

(With inputs from agencies.)