China’s Economic Recovery Faces Headwinds Despite Official Resilience Claims
China's economy shows resilience but struggles with weak momentum. Officials push for growth targets as new stimulus measures aim to stabilize the market.
POLICY WIRE — Beijing, China — President Xi Jinping recently highlighted the resilience and vitality of the Chinese economy, urging officials to hit annual growth targets while preparing for the upcoming 15th five-year plan. Despite this optimistic outlook, top planning authorities acknowledge that the foundation for recovery remains fragile.
An official from the National Development and Reform Commission (NDRC) noted on Tuesday that while the economy continues to expand, the momentum behind this recovery is currently weak. The commission is now drafting a 2026-2030 strategy aimed at bolstering domestic demand to counter external shocks and sluggish consumer spending.
To address these challenges, the government has launched its most significant stimulus effort since 2024. These measures include expanded central bank lending for technology and infrastructure, alongside new mortgage subsidies, all designed to help the nation reach its annual growth target of 4.5%-5%.
During a reception for the 77th anniversary of the People’s Republic of China, Xi emphasized the need to maintain stability while pursuing progress. He stated, “Our country’s economy has advanced despite pressure,” while calling for the faithful implementation of new development philosophies.
The economic strategy follows a recent summit between Xi and U.S. President Donald Trump, where both leaders reaffirmed a framework to manage their rivalry. The agreement includes a trade truce extending until January, a reduction in tariffs on $60 billion of non-sensitive goods, and the creation of a communication channel for artificial intelligence risks.
Looking ahead, the Fourth Plenum, which concluded on October 23, finalized policy priorities for the 15th Five Year Plan. While the government is navigating a complex international landscape, officials maintain that proactive fiscal and accommodative monetary policies are essential to support the country’s ongoing economic optimization.
Reporting by Policy-Wire (PW)
