The Chinese government is seeking a "more proactive fiscal policy and a moderately loose monetary policy next year" to stimulate growth of the world's second largest economy.

Those statements were released after the political bureau of the ruling Communist Party of China (CPC) Central Committee met Monday to discuss the economic work of 2025. President Xi Jinping chaired the meeting.

According to the daily South China Morning Post, the "moderately loose" language employed by high-level authorities in Beijing marks the "first time" since the global financial crisis in 2009.

Emphasizing "vigorously boosting consumption," the meeting said: "It is necessary to enrich and improve the policy toolkit, strengthen unconventional counter-cyclical adjustments, intensify the coordination of various policies, and make the macro regulation more forward-looking, targeted and effective."

For his part, Nobel laureate economist Michael Spence, China has reached the stage of development where domestic, not external, demand should account for the bulk of aggregate demand.

"The transition from an export- and investment-led growth model to one based on domestic consumption and innovation amounts to a fundamental structural transformation," he wrote in a signed article recently.

Yet there is much room for optimism. The economist noted that "the challenges China faces are daunting, but not insurmountable. With a clear and well-targeted policy approach, growth momentum can be restored within two to three years."
Meanwhile,Chen Lifen, a researcher at the Development Research Center of China's State Council, a government think tank, said that confidence should prevail on the country's economic growth.

"We should maintain confidence in China's economic growth," Chen added, noting that as the domestic demand-boosting policies take effect, they are set to bolster market confidence, encourage business investment, and strengthen the momentum of economic expansion.