China's top leadership has announced plans to adopt a "moderately loose" monetary policy for 2025, marking a significant shift in strategy since 2011.

This decision comes as the country prepares for potential economic challenges, including the possibility of a second trade war with the incoming U.S. administration under Donald Trump.

In addition to the monetary policy changes, the Politburo, led by President Xi Jinping, has committed to a more proactive fiscal policy approach.

This represents an escalation from previous measures, indicating a stronger governmental response to economic pressures.

The government's intent to bolster economic stability through increased fiscal spending has been highlighted.