Innovation, consumption key to growth

China is doubling down on technological innovation, particularly in areas like artificial intelligence and humanoid robots, to prop up economic vibrancy this year, hedge against escalating tariff threats from Washington, and counter sluggish domestic demand, senior economists said.

On top of the current consumption boosting-initiatives, policymakers could invest even more in consumer-centric stimulus measures and strengthen the social safety net, thus fostering a more enabling ecosystem where growing demand for high-tech products and services translates into stronger impetus for the country's innovation capabilities, they added.

"While the fiscal package — including the pro-consumption measures announced in the Government Work Report earlier this month — came as expected, what surprised us are the tech-focused initiatives," said Robin Xing, chief China economist at Morgan Stanley, in an exclusive interview with China Daily.