China sticks to 5% growth target for 2025, defies US tariffs
China set its 2025 growth target at 5% despite US tariffs and economic challenges. Premier Li Qiang announced the goal at the National People’s Congress.
The IMF predicted China’s economy would grow 4.6% in 2025, slightly below the 5% recorded in 2024. The government remains firm on achieving its target.
China plans to increase deficit spending from 3% to 4% of GDP and issue ¥1.3 trillion ($180 billion) in ultra-long-term bonds. These steps aim to boost a slowing economy.
US tariffs under President Trump add pressure on China’s exports. A real estate slump and weak consumer spending also weigh on growth.
Xi Jinping continues shifting China toward a high-tech economy, reducing reliance on foreign semiconductors. The Communist Party’s long-term strategy remains focused on innovation.
China has launched stimulus measures, including consumer rebates for cars and appliances. Businesses also receive incentives to upgrade machinery and equipment.
In December, China adjusted its monetary policy from “prudent” to “moderately loose” for the first time in over a decade. The shift signals a stronger push for growth.
The government may borrow more, increase pensions, and expand healthcare benefits. However, analysts question whether these measures will be enough to meet its 5% goal.
