China prioritises consumer spending ahead of technology as economic worries weigh

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China prioritises consumer spending ahead of technology as economic worries weigh

^{Published on 2025-03-05 10:22:20 - Reuters}

Spurring reluctant Chinese consumers to spend has been elevated to the top of Beijing's to-do list for 2025, leap-frogging technology and industrial production, as lawmakers look to rectify imbalances in the world's second-largest economy.

The article from MSN discusses China's strategic shift in economic policy, prioritizing consumer spending over technological advancements as a response to ongoing economic challenges. Amidst a backdrop of a slowing economy, declining exports, and a property market slump, the Chinese government is now focusing on boosting domestic consumption to stimulate growth. This pivot comes as the country faces significant economic headwinds, including deflationary pressures and a lack of consumer confidence. Previously, China had heavily invested in technology sectors like semiconductors and AI to drive economic progress. However, with the current economic climate, there's a noticeable policy shift towards encouraging spending through various incentives and possibly reducing reliance on exports and investment-led growth. This change aims to create a more balanced and sustainable economic model, although it presents challenges in transitioning from an investment-heavy to a consumption-driven economy.

Read the Full Reuters Article at:
[ https://www.msn.com/en-us/news/other/china-prioritises-consumer-spending-ahead-of-technology-as-economic-worries-weigh/ar-AA1AgH4E ]

Contributing Sources

Reuters

N@N

China prioritises consumer spending ahead of technology as economic worries weigh