In a significant policy shift, China has announced plans to adopt a more proactive fiscal policy while moderately loosening its monetary policy in the upcoming year, marking its first such change since 2011.
According to a Reuters report citing Xinhua news agency, this strategic decision was unveiled by the Politburo, the Communist Party’s top decision-making body, under the leadership of President Xi Jinping.
The announcement signals potential for increased economic easing, a move likely to be favorably received by global investors looking for stability in one of the world’s largest economies. This policy adjustment comes as China braces for possible implications of geopolitical developments, particularly the anticipated return of Donald Trump to the White House and his recently expressed intentions to impose additional tariffs on Chinese goods exported to the United States.
The Politburo’s new stance underscores China’s readiness to navigate the shifting economic landscape, ensuring that its policy tools are aligned with the challenges posed by international trade dynamics and domestic economic growth objectives.
