China’s Vice Premier He Lifeng: Beijing will intensify efforts to boost domestic consumption as part of its economic strategy ahead of the upcoming upper house vote.

China’s Vice Premier He Lifeng: Beijing will intensify efforts to boost domestic consumption as part of its economic strategy ahead of the upcoming upper house vote.

China's Vice Premier He Lifeng has announced that Beijing will intensify efforts to boost domestic consumption as part of its economic strategy ahead of the upcoming upper house vote. This move comes amidst ongoing trade tensions with the United States and the recent recovery of China's economy, which grew by 5.2% in the quarter ending in June, slightly exceeding economists' forecasts [2].

He Lifeng emphasized the importance of domestic consumption in stabilizing China's economy and ensuring its long-term growth. "We must focus on the internal market to drive our economic recovery," he stated. This strategy aligns with the government's efforts to reduce reliance on exports and promote self-sustained growth.

The vice premier's announcement follows a series of meetings and discussions with senior officials from various sectors, including finance and technology. He Lifeng has been actively involved in promoting financial market reforms and has met with executives from major companies like Nvidia to discuss trade and technology cooperation [3].

The decision to prioritize domestic consumption is also a response to the recent challenges faced by the Chinese economy. Despite the growth in the manufacturing and services sectors, some economists expect China to miss its annual growth target of around 5% this year due to the ongoing trade war and the long-running property market crisis [2].

Moreover, the vice premier's focus on domestic consumption is part of a broader strategy to mitigate the impact of the US-China trade war. The trade conflict has led to the imposition of high tariffs on Chinese imports, with the US imposing 145% tariffs and Beijing responding with 125% tariffs on some American goods [2]. The temporary suspension of these tariffs after talks in Geneva and London has provided a brief respite, but the two countries still have until August 12 to strike a long-term trade deal.

In conclusion, Vice Premier He Lifeng's announcement underscores China's commitment to boosting domestic consumption as a key driver of economic growth. This strategy is crucial for stabilizing the economy and ensuring long-term prosperity, especially in the face of ongoing trade tensions with the United States.

References:
[1] https://www.scmp.com/topics/he-lifeng
[2] https://www.gazetaexpress.com/en/China%27s-economic-growth-exceeds-expectations-despite-Trump-tariffs/
[3] https://www.newsmax.com/world/globaltalk/nvidia-h20-ai-chips-china/2025/07/15/id/1218790/