Chinese Policymakers Look Focused on Domestic Demand to Lift Economy

Chinese policymakers are focusing on boosting domestic demand to combat deflation and low investment. The National Development and Reform Commission plans to formulate a five-year plan to address the imbalance of strong supply and weak demand. They aim to regulate local economies, curb competition, and consider a national M&A fund to promote innovation. Despite achieving a 5% growth target for 2025, challenges remain, including a 3.8% drop in fixed-asset investment and slow retail sales growth. Economists suggest that fiscal policies will be necessary to stabilize growth in the near term.