China is taking steps to boost its economy in 2025 by stimulating consumption and expanding imports. The country plans to implement a special campaign to encourage consumer spending, create more diverse consumption scenarios, and promote service and digital consumption. Wang Wentao, Minister of Commerce, emphasized the need to comprehensively promote reform and development tasks in the country’s commercial work.
He also noted the importance of drafting the 15th Five-Year Plan (2026-2030) and ensuring the safety of production and stable market supply. In terms of foreign trade, China will actively expand imports, develop cross-border e-commerce and green trade, and promote trade digitalization. The country also aims to attract foreign investment by expanding voluntary and unilateral opening up, utilizing national economic development zones, and improving services for foreign enterprises.
Analysts expect that China’s expanded consumer stimulus program will benefit specific stocks, particularly leading home appliance manufacturers like Midea, Gree, and Haier. These companies were the top three air conditioner producers by revenue in China last year.
China’s consumer stimulus strategy
However, there are risks to growth, such as price wars and further weakness in the real estate market. Home appliance prices fell by 3.3% in December from a year ago, according to official data released Thursday. China’s major e-commerce platforms, such as JD.com and Alibaba, are also expected to benefit from the trade-in subsidies program.
JD.com remains Citi internet analysts’ top pick for playing the consumer stimulus program in the year ahead, given its strong supply chain capabilities and experience with the program. The Ministry of Commerce outlined its key goals for 2025, including opening up the China market wider, deepening international collaboration on supply chain building, and stabilizing foreign trade and capital flows. The ministry also pledged to boost domestic consumption, integrate with international trade standards and practices, and deepen bilateral, multilateral, and regional economic and trade cooperation.
China’s post-Covid economy has been struggling to recover amid a property market downturn and weak investor confidence. The country is also bracing for more uncertainties with international political changes on the horizon. However, the latest consumer stimulus plan and efforts to attract foreign investment are expected to help kick-start the economy in 2025.
