Amid rising global uncertainties and a complex external environment, China is leveraging coordinated policy efforts to sustain economic growth, stabilize employment, and boost market confidence. The renewed commitment follows a recent meeting of the Communist Party of China Central Committee’s Political Bureau, which emphasized the need for high-quality development and steady macroeconomic regulation.
China’s economic momentum remained strong in the first four months of 2025, with growth in industrial output, services, and exports. Retail sales of home appliances and communication devices surged by over 20%, while investment in equipment increased by 18.2%. High-tech manufacturing, driven by sectors such as new energy vehicles and artificial intelligence, rose 10% year-on-year in April.
To reinforce this growth, China has expanded its monetary policy tools. A 0.5 percentage-point cut in the reserve requirement ratio released 1 trillion yuan into the financial system. The central bank also introduced structural policies such as re-lending facilities worth 1.3 trillion yuan to support sci-tech innovation, elderly care, and domestic consumption.
Small and medium-sized enterprises (SMEs) are major beneficiaries of these policies. Inclusive loans to micro and small firms grew by 11.9% year-on-year, while “little giant” firms—innovative SMEs with niche market expertise—saw loan growth of 15.1%.
Boosting domestic demand remains a key pillar. The government rolled out a trade-in program for consumer goods, resulting in 1.1 trillion yuan in sales from January to May. Over 4 million vehicles and 77 million household appliances were traded in, underlining the strength of consumption-focused initiatives.
Meanwhile, employment remains broadly stable. Urban job creation has kept pace, with the unemployment rate averaging 5.2% through April. Policies such as employment subsidies, skill training, and special loans have supported job retention and expansion. Over 10 million people are expected to benefit annually from subsidized training in key sectors.
Officials emphasize that macroeconomic policies will continue to be synchronized to reinforce each other. These efforts aim to enhance economic resilience, build long-term growth foundations, and buffer China against external shocks.
