China eases monetary policy and boosts civil servant salaries in focus on growth

Chinese authorities outlined a focus on economic growth for the year ahead, with national leader Xi Jinping insisting the country “must be confident.”

Officials eased monetary policy and raised civil servant salaries, part of efforts to bolster flagging domestic consumption and accelerate economic growth: Analysts at Rhodium Group estimated that China grew in 2024 by only about half as much as its official 5% target, and said the country is unlikely to meet that goal this year either.

Of Xi’s biggest challenges in 2025 — anemic growth, the need for broader structural reforms, and geopolitical risks amplified by US President Donald Trump’s return to office — “first, and most obviously, is the state of the economy,” a China scholar warned.