As China enters 2025, the country’s economic strategy is centered around cautious monetary policy and strategic stimulus measures. With U.S. trade tariffs on the horizon under President Trump, China is focusing on boosting domestic consumption and investing in key sectors like technology and infrastructure. The PBOC has opted to keep the loan prime rate unchanged, reflecting its careful stance amid a weakening yuan. Fiscal stimulus will target consumer spending, the property market, and innovation in industries such as AI and renewable energy. China's long-term goals focus on reducing reliance on exports and fostering a more self-sufficient, innovation-driven economy.
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