China's returning to its 2008 financial crisis playbook

• It now appears the government is returning to its 2008 global financial crisis-era playbook to address those challenges.

Driving the news: The Politburo said it would embrace a "moderately loose" monetary policy in 2025, paired with a "more proactive" fiscal policy, according to the official Chinese news agency Xinhua.

• It last used the "moderately loose" language to describe its monetary policy stance from 2008 to 2010, in the midst of the global panic.
• The news drove a surge in Asian markets. The Hang Seng index for Hong Kong-listed stocks was up 2.8% Monday.

Between the lines: In the near term, China faces the prospect of an escalation in its long-simmering trade tensions with the United States, as Trump threatens 60% tariffs on Chinese imports.

• In the medium term, it faces increasingly challenging demographics, as the lagged effects of its one-child policy crimp labor supply.
• Fiscal and monetary policy can't solve either problem. Still, President Xi Jinping and his leadership team may try to juice their economy using tried-and-true tools in hopes of better weathering those threats.