Big Take cover image

Big Take

Xi’s Big Challenge Is Getting People to Spend, Spend, Spend

Mar 7, 2025
John Liu, Bloomberg's senior executive editor for Greater China, provides insightful analysis on the pressing challenges facing China today. He discusses the ambitious 5% GDP growth goal amidst a crippling property crisis and weak consumer demand. Liu highlights how Xi Jinping's strategies to boost spending through public initiatives clash with the reality of high youth unemployment and external trade tensions, particularly with Trump's tariffs. Liu's expert perspective offers a deep dive into navigating a complex economic landscape.
13:48

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • China is prioritizing increasing domestic consumer spending through public investment despite facing significant economic challenges and high debt levels.
  • The ongoing U.S.-China trade tensions, particularly Trump's tariffs, complicate China's efforts to achieve its economic growth target and require strategic diplomatic adjustments.

Deep dives

China's Ambitious Economic Goals

The Chinese government has set an ambitious GDP growth target of approximately 5% for 2025, maintaining the same level as the previous year despite ongoing economic challenges. Premier Li Qiang highlighted that boosting domestic consumption is the top priority to help stimulate the economy. To achieve this, the government plans to increase public spending while allowing the general budget deficit to rise to its highest level in over three decades, suggesting a reliance on borrowing to sustain growth. However, the sustainability of this strategy remains uncertain, as overarching economic conditions continue to pose significant threats.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode