China to boost consumption and tech development as U.S. tensions rise

Beijing: China’s top leaders have outlined new plans to strengthen domestic consumption and accelerate technological development over the next five years, as trade and political tensions with the United States continue to grow.

The announcement came after a four-day “Fourth Plenum” meeting, which set the country’s main policy direction through 2030. The government said it aims to “vigorously boost consumption” while promoting investment in technology, manufacturing, and innovation.

Officials emphasized that increasing consumer spending is now a national priority, alongside policies to support businesses and stabilize growth. However, analysts noted that Beijing remains cautious about direct cash handouts or large-scale subsidies for households.

“New demand will lead to new supply, and new supply will create new demand,” the official meeting summary said, reflecting a renewed focus on balancing consumption and production.

Economists say the new strategy suggests greater investment in sectors such as urban planning, elderly care, and public services, all seen as key to supporting domestic demand.

At the same time, China pledged to achieve major progress in technology self-reliance, focusing on high-tech industries and national defense. Officials said the country aims for a “significant leap forward” in economic and scientific strength by 2035.

The meeting also reaffirmed China’s 2025 growth target of around 5%, though analysts warned the goal could be difficult to maintain given the ongoing property downturn and slowing global demand.

Vice Premier He Lifeng is scheduled to visit Malaysia this week for trade talks ahead of a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this month.

Despite economic challenges and tighter U.S. technology restrictions, Beijing reiterated its commitment to developing a strong manufacturing and agricultural base while advancing green initiatives to reduce carbon emissions.