China's Push to Ignite Domestic Consumption by 2025: A Strategic Pivot

Beijing has prioritized boosting domestic consumer spending over technology and industrial production to spur economic growth. Aiming for a 5% growth target by 2025, China plans to launch a special action plan to stimulate demand, amid trade tensions and ongoing technological challenges.

In a significant strategic shift, Beijing has placed the stimulation of domestic consumer spending at the forefront of its economic agenda for 2025, surpassing technology and industrial production priorities. This move, revealed in Chinese Premier Li Qiang's recent parliamentary report, sets a growth target of approximately 5% for the year.

Facing persisting trade tensions with Washington, China recognizes the need to bolster consumer confidence and spending. To achieve this, the government has devised a "special action plan," emphasizing consumer spending nearly 31 times, a substantial increase from the previous year. Analysts anticipate that broadening consumer engagement is key to countering challenges posed by rising global tariffs.

While prioritizing domestic consumption, technology remains crucial as China confronts an "increasingly complex and severe external environment." The focus will extend to fostering "industries of the future," advancing AI technologies, and nurturing scientific talent to ensure a competitive edge in global markets.

(With inputs from agencies.)