CHENNAI: China is expected to unveil a new round of stimulus measures—including increased fiscal support, targeted monetary easing, and enhanced initiatives to boost consumer spending—in an effort to strengthen the foundation of its economic growth.
Quoting several analysts, China Daily reported on Friday that this likely policy shift may coincide with a high-level leadership meeting traditionally held at the end of April to address key economic priorities.
As previously reported by The New Indian Express, China’s Finance Ministry—through its latest public fund expenditure report released last week—revealed that a significant portion of the annual budget has already been spent to support the economy and stimulate domestic market activity. This move comes in response to weakening exports caused by the ongoing tariff war with the United States.
According to China Daily's Friday report, further government support is expected soon, with new economic stimulus measures likely to be announced by the end of April. These additional steps may include increased government spending (fiscal stimulus), easier access to credit and loans (monetary easing), and enhanced initiatives to boost consumer demand.
This announcement may come during an important upcoming leadership meeting focused on economic policy.
The meeting is seen as a chance for leaders to respond to the recent escalation in the US-China trade conflict. Experts quoted in the report believe that US tariffs are starting to affect China's economy, and the effects will likely grow in the second quarter.
China’s economy grew 5.4% in the first quarter of 2025, which is solid. However, some indicators show that consumer and business demand at home is still weak.
Hence, the analysts expect a significant stimulus package. Estimates suggest it could be worth 1.5 to 2 trillion yuan (roughly $206 to $275 billion)
A big part of this money may go toward boosting consumer spending, not just infrastructure investment.
Since China exports about $500 billion worth of goods to the US every year, the government wants to strengthen domestic consumption to make up for any lost sales abroad.
Before COVID-19, retail sales in China typically grew 8–9% each year. Officials hope to return to that level by supporting consumer demand.
Since any new government spending must be approved by China’s top lawmakers, a key meeting of the National People’s Congress Standing Committee will take place soon, and approval might be given then.
Even if the plan is approved, officials will decide later exactly how and when to roll out the measures, depending on how the economy performs, says the news report.
Additionally, China’s central bank is expected to cut the reserve requirement ratio (making it easier for banks to lend), and possibly lower interest rates by June.
The country will also use targeted tools to support exports, consumer spending, and tech innovation. The media reports also suggests that China plans to stay focused on high-quality, sustainable growth rather than taking drastic measures.
