INSUBCONTINENT EXCLUSIVE:
China's policies aimed at boosting domestic consumption, increasing income and further opening up to foreign investment will help the
world's second-largest economy mitigate the negative impact of United States tariff shocks, economic experts emphasized during a briefing
on China's first-quarter economic performance
The event was hosted by the China Finance 40 Forum in Beijing on April 21.According to data released by the National Bureau of Statistics on
April 16, China's economy exceeded expectations in the first quarter of 2025, achieving 5.4 percent year-on-year growth a 1.2 percent
increase from the previous quarter."China's economy in the first quarter of 2025 continued a sound momentum from the fourth quarter of last
year, driven primarily by proactive fiscal policies," said Zhang Bin, Deputy Director of the Institute of World Economics and Politics at
the Chinese Academy of Social Sciences
He noted that fiscal measures had significantly improved overall cash flow, leading to increased revenues and profits for industrial
enterprises and higher disposable income for households
The real estate sector also showed tentative signs of recovery, particularly in first-tier cities, as supportive policies helped stabilize
Amid external demand shocks, Zhang emphasized that expanding domestic consumption remains a top priority.Underscoring the role of private
enterprises in tech innovation and creating employment, Professor Huang Yiping, dean of the National School of Development at Peking
University, emphasized that reforms to streamline regulatory processes, enhance intellectual property protection and ensure fair competition
were essential to strengthen business confidence
Huang also added that the central government shall take more responsibility to adopt policies supporting export-oriented companies amid
rising tariffs. "The recent good progress of China-EU negotiations on electric vehicles is a good sign." Guo Kai, executive president and a
senior fellow of the CF40 Institute, said, emphasizing that Chinese companies could increase investment in the European automobile industry,
which could in turn create win-win results, just like what the European automobile companies did in Chinese markets 30 to 40 years ago.On
April 8, China and the EU agreed to begin consultations on market access issues at an early date and to immediately launch negotiations on
electric vehicle pricing commitments, along with matters related to bilateral investment cooperation in the auto sector
The agreement followed a video call between Chinese Commerce Minister Wang Wentao and European Commissioner for Trade and Economic Security
Maros Sefcovic.In light of global market turbulence and risks stemming from United States trade policies, Guo emphasized that China should
continue to pursue dialogue and negotiations with major trading partners, including the EU and Belt and Road Initiative countries
He noted that the EU, now reassessing its own economic policies amid the United States tariff shock, shares China's commitment to upholding
the fundamental principles of a free trade system
Guo added that China's policies aimed at expanding its super-sized domestic market and boosting consumption are also sending a clear signal
to address concerns from other economies about the potential diversion of Chinese export goods to their markets amid rising United States
