China's Premier Calls for Swift Action to Boost Economy
Sign up for Global Macro Playbook: Stay ahead of the curve on global macro trends.
China's leadership is urging local governments to act decisively to ensure a strong economic start to 2025, Premier Li Qiang stated, as reported by South China Morning Post.
The call comes amid growing concerns about China's ability to sustain economic growth, given rising global uncertainties and weak domestic demand.
During a visit to Shandong province, Premier Li emphasized the need for immediate action. "We must ensure the early implementation of policies, accelerate the advancement of projects, and deliver tangible results with our measures, striving to achieve a good start for this year's economic development," Li said, according to state media outlet Xinhua.
Li specifically called for expanded trade-in programs to stimulate consumption. He also stressed the importance of expanding charging and battery-swapping infrastructure to support the burgeoning new energy vehicle market. Furthermore, he advocated for accelerating the construction of key infrastructure and essential projects, including sports venues and modern water networks.
Li's remarks underscore the urgency of China's economic challenges. The country is currently facing weak consumer and business confidence, exacerbated by the potential for renewed trade tensions with the United States under the incoming Trump administration.
President-elect Donald Trump's return to the White House on January 20 could further complicate matters. Trump has previously threatened tariffs on Chinese goods, raising concerns about the impact on bilateral trade relations and the broader Chinese economy.