Japanese experts highlight China's focus on stimulating consumption, growth

Japanese academics emphasized that revitalizing consumer spending is a crucial strategy, noting that China's focus on social welfare and boosting consumption as outlined in the 2025 Government Work Report reflects the country's current economic landscape.

"With investment in real estate and wealth accumulation having passed their peak, industries and services that support social welfare and personal consumption are expected to take center stage in China," said Kazuyuki Hamada, an international political economist and former parliamentary vice-minister for foreign affairs of Japan.

He highlighted the importance of prioritizing science and technology — particularly in fields like information technology and artificial intelligence — and ensuring that both businesses and individuals can broadly benefit from these advancements, which he believes could serve as a global model in the future.

Hidetoshi Tashiro, chief economist at Infinity LLC, a Japanese consulting firm advising stock trading and real estate management, noted that household consumption accounts for a relatively low share of China's GDP compared to countries like the United States and Japan, indicating potential for growth.

"Stimulating consumption through social support and promotion not only drives economic growth but also helps offset the negative effects of Trump's tariffs," Tashiro said, emphasizing the need for bold policies to restore consumer confidence in China.

This year's Government Work Report, delivered by Chinese Premier Li Qiang at the annual session of the National People's Congress on Wednesday, emphasized China's commitment to a more proactive fiscal policy.

"We will make good use of revenues, bonds, and other fiscal funds to ensure that fiscal policies provide sustained and more effective support. We have set the deficit-to-GDP ratio for this year at around 4 percent, an increase of one percentage point over last year," the report stated.

Satoshi Tomisaka, a professor at the Institute of World Studies at Takushoku University in Tokyo, noted that China has been wavering between fiscal consolidation and economic stimulus but has now clearly signaled an expansion of its fiscal policy to the world.

"This sends a strong message of stability at a time when global uncertainty is on the rise," Tomisaka said.

Japanese experts also welcomed Premier Li's proposal for a higher level of openness to the outside world. Hamada described it as "an essential policy for ensuring stable international economic development," particularly as the US continues to prioritize an "America First" strategy and engage in tariff wars.

"The US has increasingly put its own interests first in both financial and economic policies on the global stage. This shift presents a serious risk to the international community. From the perspective of a shared future for mankind, fairer and more flexible fiscal and monetary policies are essential," Hamada said.

In the Government Work Report, Li stated that China will work for the signing of the China-ASEAN Free Trade Area 3.0 Upgrade Protocol and speed up the process of joining the Digital Economy Partnership Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

Noriyuki Kawamura, emeritus professor at Nagoya University of Foreign Studies, highlighted China's potential to take a leadership role in promoting multilateral free trade.

"The Chinese government is steadily preparing the necessary domestic laws and conditions to advance its bid for membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. To achieve this goal, China should work closely with Japan and other relevant countries," Kawamura said.

As both China and Japan grapple with aging populations and declining birth rates, industries related to healthcare, medical services, and welfare are expected to see significant growth.

"Japan leads the world in universal health coverage and lifelong medical services, maintaining the highest average life expectancy. Expanding openness and exchange initiatives between Japan and China, particularly in this field, would be highly beneficial," Hamada said.