To counteract these challenges, the government plans to boost consumption and expedite the establishment of a national venture capital fund, with initiatives expected to launch in the second quarter of 2025.

Amid ongoing trade tensions with the United States, China has announced new measures aimed at stabilizing employment, the economy, and foreign trade.

On April 28, 2025, Zhao Chenxin, vice head of the National Development and Reform Commission, expressed optimism about achieving a 5% economic growth target for the year.

However, major financial institutions, including the International Monetary Fund, Goldman Sachs, and UBS, have revised their growth forecasts for China downward, indicating challenges in reaching this target.

The Politburo has emphasized the importance of strengthening service consumption as a key driver of economic growth, highlighting the need for a robust recovery.

Zhao also stressed the necessity of stabilizing the capital market and increasing financial support for the struggling real estate sector.

Despite some economic support measures introduced since September 2024, large-scale stimulus has yet to materialize, leading to cautious investor sentiment.

While Zhao did not announce new support measures, he indicated that policies would be implemented in the second quarter based on evolving economic conditions.

In response to economic challenges, the government plans to enhance support for vulnerable consumers, including increased assistance for elderly individuals with disabilities and measures to boost automobile sector consumption.

The job market faces pressure with an unprecedented 12.22 million higher education graduates entering in 2025, contributing to a youth unemployment rate of 16.5%.

Analysts predict that additional monetary and fiscal stimulus measures will be necessary in the coming months to support economic growth.

Consumer spending has become a crucial component of China's economic growth, accounting for nearly 45% last year, surpassing investments and exports.