Chinese Leaders Gather for Economic Conference Amid Slowing Growth, Trade Tensions

BEIJING, Dec 22 - China's top leaders are set to gather at the annual Central Economic Work Conference (CEWC) on Wednesday, with investors eagerly awaiting signs of stimulus to revive the slowing economy.

The conference, which is also expected to address growing tensions with the United States under President-elect Donald Trump, marks a key event in Beijing's efforts to boost consumption and shore up domestic demand after years of sluggish growth.

According to reports, the closed-door meeting is expected to run through Thursday, with President Xi Jinping attending the gathering, which typically convenes at the end of the year. Experts predict that Chinese leaders will call for "vigorous" support for consumers next year and "moderately loose" monetary policy in 2025, marking a shift away from the prudential approach adopted for more than a decade.

Beijing has unveiled several measures to boost growth this year, including key rate cuts, easing of homebuying restrictions, and trade-in programs. However, investors are still waiting for specific policy announcements on how much support can be expected from the government next year.

"We do expect the (central bank) to step up the pace of rate cuts next year," said Julian Evans-Pritchard, head of China economics at Capital Economics. "However, it is unlikely that they will cut rates anywhere near as aggressively as they did during the (global financial crisis)."

Analysts point to a need for more aggressive measures to boost household and business confidence, particularly in relation to major household-side stimulus. Without such initiatives, policy efforts might not be effective in lifting consumer spending next year.

The conference comes amid growing tensions with the United States, which has promised to impose stinging tariffs on China under Trump's presidency. Beijing remains tight-lipped on the matter until official statements are released after Friday.