China Introduces Aggressive Economic Measures to Combat Sluggish Growth

CN
Published:

In an effort to stimulate its struggling economy, China has implemented a series of significant support measures since September. As the country faces challenges such as sluggish domestic spending, a prolonged downturn in the property market, and increasing trade tensions, officials in Beijing are taking decisive steps to ensure sustainable growth in 2025.

Key interventions announced include consumer subsidies aimed at boosting spending. To address a near slip into deflation observed in December, authorities have expanded a program that allows consumers to replace old household appliances with modern alternatives at discounted rates. This initiative has been extended to include various electronics like smartphones and tablets.

Additionally, the People's Bank of China has slashed key interest rates to historic lows, aiming to lower borrowing costs and stimulate economic activity. The one-year Loan Prime Rate has decreased from 3.35% to 3.1%, while the five-year rate has dropped from 3.85% to 3.6%. Central bank officials indicate the possibility of further rate cuts as part of a policy shift towards a "moderately loose" monetary stance.

In a bid to revive its beleaguered property sector, which has seen significant declines due to regulatory crackdowns and high levels of debt among developers, the government has introduced several policies. These include reducing deed taxes for first-time home buyers in various major cities and relaxing restrictions on home purchases.

To address the burden of local government debt, the Chinese government has approved a plan to convert hidden debts into more manageable official loans, a move expected to ease financial pressures on local authorities.

Despite these efforts, analysts remain cautious about the potential for a swift recovery in the property sector, suggesting that while initial signs of improvement may emerge, there is "no quick fix" in sight.

Weekly Newsletter

News summary by melangenews

Loading...

More from China

Scientists Discover Chorus Waves Farther from Earth Than Ever Before

A groundbreaking study has revealed the presence of chorus waves, typically known to occur 32,000 miles from Earth, at an unprecedented distance of 102,500 miles, more than three times further than previously recorded. According to researchers at Beihang University in China, who published their findings in the journal *Nature*, these waves potentially indicate that energetic electrons and related phenomena could be widespread in the universe, wherever magnetic fields exist. Chorus waves are disturbances in the Earth's magnetic field that generate fast-moving electrons, often referred to as "killer electrons," which pose risks to spacecraft by potentially damaging their systems. James Burch, principal investigator for NASA’s Magnetospheric Multiscale (MMS) mission, underscored the significance of this research, emphasizing its implications for future space missions to the Moon, Mars, and beyond. The discovery implies that the effects of these energetic particles are more extensive than previously recognized, necessitating enhanced shielding against them for human space exploration.
CN

Chinese AI Firm DeepSeek Stuns Silicon Valley with Advanced Model

Chinese artificial intelligence company DeepSeek has captivated Silicon Valley following its launch of a powerful AI model that challenges U.S. technological dominance. Despite U.S. restrictions on exporting advanced chips to China, DeepSeek's founder Liang Wenfeng revealed that the company had stockpiled between 10,000 and 50,000 Nvidia A100 chips before the ban. This inventory allowed DeepSeek to develop a model at a fraction of the cost compared to American counterparts. According to experts, while the U.S. government's export controls posed significant challenges, they have also prompted innovation within the Chinese tech sector. Marina Zhang, an associate professor at the University of Technology Sydney, noted that these restrictions have driven companies like DeepSeek to maximize resources and foster creativity. Liang, 40, is hailed as an "AI hero" in China, leading a team of fewer than 140 engineers—most sourced from elite universities. The release coincided with heightened tensions in U.S.-China relations, signaling Beijing's resolve to position itself as a tech superpower. However, the long-term efficacy of DeepSeek amid new restrictions remains uncertain.
CN

Scientists Discover 'Killer Electrons' Farther Than Ever From Earth

A new study led by Beihang University scientists reveals that "chorus waves," which produce dangerously high-energy electrons, have been detected more than three times further from Earth than previously thought—at an astonishing distance of 165,000 kilometers (approximately 102,500 miles). These findings, published in the journal Nature, suggest that chorus waves can be generated by changes in magnetic field frequencies, rather than only near planetary magnetic fields, according to co-author James Burch, principal investigator of NASA’s Magnetospheric Multiscale (MMS) mission. Previously, researchers detected chorus waves only at a maximum distance of 51,000 kilometers (about 32,000 miles). These high-speed, energy-laden particles can penetrate spacecraft shielding, posing a significant risk for human spaceflight missions to destinations like the Moon and Mars. “This is a new source of energetic electrons that we didn’t know about that can occur everywhere,” Burch stated, emphasizing the implications for future exploration. Understanding the behavior of these particles will be crucial for ensuring the safety of astronauts in deep space.
CN
All China News ->