In 2025, China is promoting consumption and expanding domestic demand through a range of initiatives. The country is steadily opening up its service sector, focusing on the evolving needs of its residents. This includes encouraging the import of high-quality life services such as healthcare and cultural entertainment, injecting new vitality into the consumer market.

According to the China Financial 40 Forum’s first-quarter 2025 macro policy report released on Monday, while the Chinese economy continues to face demand challenges, some improvement in cash flow has been observed across various sectors. The real estate market is showing divergent trends: while first-tier cities are seeing signs of stabilization and recovery in residential sales and prices, second- and third-tier cities remain in a phase of adjustment. Chinese exports have remained robust so far, with limited impact from tariff-related pressures.

To address ongoing challenges, the report recommends a series of policy measures, including accelerating domestic demand expansion through public investment and key reform breakthroughs; stabilizing stock and foreign exchange markets to reduce excessive emotional fluctuations; maintaining dialogue while opposing the US’s “maximum pressure” and “excessive demands”; providing necessary support for affected workers and enterprises; and fostering a more favorable domestic and international environment for business transformation.