In 2025, China is making significant strides in boosting its economy through various initiatives aimed at promoting consumption and expanding domestic demand. These efforts are particularly evident in the service sector, which is steadily opening up to meet the evolving needs of its residents. This includes a focus on high-quality life services, such as healthcare and cultural entertainment, which are injecting new vitality into the consumer market.
According to the China Financial 40 Forum's first-quarter 2025 macro policy report released on Monday, April 21, 2025, the Chinese economy continues to face demand challenges, but there are signs of improvement in cash flow across various sectors. The report indicates that while first-tier cities, like Beijing and Shanghai, are witnessing stabilization and recovery in residential sales and prices, second- and third-tier cities are still adjusting to market conditions.
Chinese exports have remained robust, with only limited impact from tariff-related pressures, which is a positive sign for the country’s trade balance. To tackle ongoing economic challenges, the report recommends a series of policy measures aimed at accelerating domestic demand expansion through public investment and key reforms.
The recent conclusion of the 5th China International Consumer Products Expo in Haikou, Hainan, on April 18, 2025, further highlights the country's commitment to enhancing consumer engagement and fostering economic growth. Huang Yiping, dean of the National School of Development at Peking University, stated that the current consumption-promoting policies will have a positive and lasting impact on China’s consumer market.
Huang emphasized that countercyclical policies are essential for stabilizing economic growth and creating a supportive macroeconomic environment for consumption. These strategies include encouraging fertility, developing metropolitan areas, and facilitating the settlement of migrant workers, which are expected to broaden the consumer base and enhance consumption capacity.
In addition to these domestic initiatives, the robotics sector in China is also experiencing a significant transformation. China’s humanoid robot manufacturers are charging full steam ahead with mass production, which is projected to boost the total value of automata produced on the mainland this year to about 4.5 billion yuan (approximately US$616 million).
A report by market research firm TrendForce, released on April 21, 2025, revealed that six out of eleven domestic humanoid robot makers, which had set their mass production initiatives in 2024, plan to manufacture more than a thousand units this year. This surge in production reflects the intensifying competition within China’s robotics industry, fueled by an artificial intelligence boom and the country's drive for technology self-sufficiency.
Notably, Tesla CEO Elon Musk's ambition to produce thousands of Optimus robots this year is expected to benefit China’s robotics supply chain. However, it is important to note that Tesla and other U.S. companies rely heavily on Chinese suppliers for many core components of humanoid robots, making their production plans vulnerable to potential tariff disruptions.
In light of these developments, Zhang Bin, the deputy director of the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, emphasized that expanding domestic demand should prioritize boosting GDP growth through countercyclical measures. He advocated for a focus on lowering policy interest rates and expanding public investment to stimulate economic activity, enhance employment opportunities, raise household income, and ultimately drive consumption growth.
As China continues to navigate the complexities of its economic landscape, the interplay between domestic consumption initiatives and advancements in technology, particularly in robotics, will be crucial in shaping the future of its economy. The country’s commitment to fostering a robust consumer market, alongside the rapid evolution of its robotics industry, presents a unique opportunity for sustained economic growth and technological advancement.
In summary, China’s multifaceted approach to boosting consumption and expanding domestic demand, coupled with its advancements in the robotics sector, signals a proactive stance in addressing economic challenges. As the nation seeks to enhance its consumer market and technological capabilities, the ongoing developments in both areas will play a pivotal role in driving sustainable economic growth.
