Market Outlook: US Tariffs and Domestic Incentives Will Be Key Themes for China This Year

Forex - Citi analysts indicated that the risks related to U.S. tariffs and domestic policy incentives are the two main themes for the Chinese economy in 2025. The analysts emphasized that China may have reached its economic growth target of 5.0% last year, but deflationary pressures are deepening. They noted that consumer inflation may have fallen to 0.0% in December compared to the previous year, and in the potential policy vacuum that could last until the National People's Congress in March, monetary expansion may be the most important aspect to monitor.