Chinese President Xi Jinping on Tuesday called for the implementation of a more macroeconomic policy « proactive » in 2025, according to official media, at a time when Beijing is still seeking to stem the loss of steam in the world’s second largest economy.
“We need to deepen reform, (and) implement more proactive and effective macroeconomic policies”Xi said at an end-of-year reception of the National Committee of the Chinese People’s Political Consultative Conference, according to state broadcaster CCTV.
China’s economy faces the specter of deflation, triggered by a severe housing crisis and consumption levels well below those seen before the pandemic.
Beijing has increased plans to stimulate the economy in recent months, including a reduction in interest rates and an increase in the debt ceiling for local governments.
But some economic circles believe that more direct fiscal stimulus measures aimed at supporting consumption are necessary to maintain growth in the Chinese economy.
At the beginning of December, Mr. Xi gave some guarantees in this area, saying he wanted “to soften” the country’s monetary policy for next year.
A few weeks later, the Ministry of Finance announced “an increase” future budget deficit.
“We must maintain the general guideline of stability while seeking progress” et “accelerate the implementation of a new development model”the Chinese leader stressed on Tuesday, according to CCTV.

A giant screen shows Chinese President Xi Jinping’s New Year speech broadcast by state television, December 31, 2024, in Beijing / ADEK BERRY / AFP
In his New Year’s speech broadcast by state television, he said that the current Chinese economy was under « pression » to « transformer » and move from “old growth levers to new ones” levers, and she was doing “facing an uncertain external environment”.
Ces “challenges” can be noted in “hard working”he added.
Xi also reiterated his confidence in the official gross domestic product (GDP) growth target of 5 percent for 2024, saying that a “productivity of a new quality develops”.
Official Chinese growth figures will be released in January, but some observers cast doubt on China’s ability to achieve its goal.
The International Monetary Fund expects the Chinese economy to grow by 4.8% in 2024, and anticipates a decline to 4.5% in 2025.
Ultimately, Chinese economic growth could fall “well below” of 4% in the absence of major reforms, said IMF Director Kristalina Georgieva in October.
Structural imbalances
The Chinese leader’s statements come after Tuesday’s publication of the monthly index of Chinese manufacturing activity, up for the third consecutive month.
In December, the Purchasing Managers’ Index (PMI), a key barometer of the industrial world, stood at 50.1 points, compared to 50.3 in November, according to the National Bureau of Statistics (NBS). An index above 50 indicates an expansion in manufacturing activity; below, a contraction.
The non-manufacturing PMI, which measures activity in the services sector, also rose sharply to 52.2 in December, compared to 50.0 in November.
“The strengthening of political support at the end of the year clearly gave a boost to growth in the short term”says Gabriel Ng of Capital Economics.
Export orders also reached their highest level in four months, “probably thanks to an increase in orders from American importers anticipating possible customs duties imposed by Donald Trump”he continues.

Chinese electric cars intended for export at the port of Yantai, in Shandong province (northeast China), January 10, 2024 / -, – / AFP
The American president-elect, who will be inaugurated at the end of January, has promised to strengthen customs duties on Chinese imports.
Consequently, this boost in production could “only last a few quarters, because Donald Trump should carry out his threats of customs duties” while “persistent structural imbalances will continue to weigh on the economy” Chinese, warns Gabriel Ng.