Beijing's economy has maintained stable growth since the start of the year, driven by dozens of new policies, according to the municipal development and reform authority.

Data shows that from Jan. 1 to Feb. 20, industrial power consumption, which reflects production activity, rose by 3.5% year on year. Power usage in the automotive and electronics sectors grew by 3% and 30.1%, respectively. Consumer spending continued to recover, with UnionPay transactions up 6.8%.

As of Feb. 25, 110 out of 160 major municipal and district projects planned for the first quarter have started, matching last year's pace.

Over the first two months, the city has expanded its consumer goods trade-in program, increasing covered home appliance categories from eight in 2024 to 12. Furthermore, personal electronics such as smartphones, tablets, and smartwatches can also now participate in the trade-in program. Participating businesses grew from 148 retailers with 852 stores to 364 retailers with 2,490 stores.

Since May 2022, Beijing has provided interest subsidies for first-time loans to support small and medium-sized enterprises (SMEs), reducing financing costs by over 430 million yuan (US$59 million) for 27,000 SMEs. Under a recent policy update, while general SMEs in the city continue to receive 20% interest subsidies, qualified innovative SMEs now get as much as 40%.

The revised policy has also streamlined registration, allowing SMEs to apply through four online and offline channels. Notably, subsidies have been directly transferred to company accounts this time for faster access to funds.

Beijing has also introduced measures to support the science and technology services industry. Companies providing research and experimental services are encouraged to explore new scientific research paradigms using artificial intelligence models, and those conducting inspection and testing are receiving support to develop innovative approaches like online inspection and Internet of Things-based smart inspection.

Additionally, the city is identifying first-of-its-kind products in eight sectors, including healthcare, integrated circuits, transportation, robotics and smart manufacturing, specialized intelligent equipment, high-end energy and energy-saving equipment, aerospace, and critical equipment in frontier fields. Policy and service support will be provided to both product developers and user companies.

The city is also gathering applications for clean production demonstration projects. Eligible projects will be included in a reserve pool and, upon approval, may receive subsidies covering up to 30% of their total investment.

According to the municipal science and technology authority, Beijing's technology services sector, with 10% of the nation's companies, generates 20% of the industry's revenue and contributes to over 30% of its profits. The city leads the nation in the number of national key laboratories and state-level incubators.

Municipal officials announced that more policies will be launched in March to further bolster economic growth.

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