China’s top leaders are set to intensify efforts to boost consumer demand, as data shows that retail spending has slowed unexpectedly. Despite this, Beijing is unlikely to unleash a large-scale stimulus package just yet. Instead, senior officials have signaled a stronger pro-growth stance by endorsing bigger government spending and interest rate cuts. This marks the strongest stance in over a decade, with boosting consumption now at the top priority. However, Beijing is still cautious about abandoning its focus on factory production, which remains a key driver of growth. As the country searches for solutions to fill the gap in demand, policymakers are working to find alternative strategies to stimulate consumer spending.
Source: https://www.bloomberg.com/news/articles/2024-12-16/china-will-keep-trying-to-spur-consumption-without-big-stimulus