Three Issues That Could Shake China's Vulnerable Economy in 2025

Beijing hopes its recent moves to stimulate the world's second-largest economy will bear fruit this year. An ongoing property sector crisis, deflationary pressures exacerbated by muted consumer confidence and the specter of tariff hikes pledged by U.S. President-elect Donald Trump loom large over China's 2025 growth prospects.

The country's economy has failed to roar back after the government dropped its strict rolling anti-pandemic lockdowns at the end of 2022. Late last year, the government began rolling out its most aggressive stimulus package since the pandemic in a bid to boost borrowing, ease pressure on consumers and encourage domestic spending.