China is set to bring confidence to the world in 2025 as it positions itself as one of the fastest growing economies through targets laid out in the government work report.
The world’s attention has once again shifted to Beijing as China unveiled its economic growth target of approximately 5 percent for 2025 during the opening meeting of the third session of the 14th National People’s Congress (NPC) on Wednesday.
On a global scale, achieving a 5 percent growth rate would position China among the fastest-growing major economies. The economic expansion anticipated for 2025 would be equivalent to the annual output of a mid-sized nation.
China’s Economic Stability Amid Global Uncertainty
Justin Lin Yifu, dean of the Institute of New Structural Economics at Peking University, emphasized that China’s stable and robust economic growth in 2025 is assured, despite uncertainties in the global landscape.
Lin, a former senior vice president and chief economist at the World Bank, expressed confidence that China’s GDP will grow by at least 5 percent, continuing its role as a major driver of global economic expansion, contributing over 30 percent to worldwide growth.
“This is not only beneficial for China but also for the global economy,” he remarked.
Commitment to Global Cooperation and Fairness
The government work report, submitted to the national legislature on Wednesday, reaffirmed China’s commitment to fostering an equitable and orderly multipolar world while promoting inclusive and beneficial economic globalization.
China pledged to maintain its strategy of mutual benefit in opening up, firmly oppose hegemonism and power politics, reject unilateralism and protectionism in all forms, and uphold international fairness and justice.
Fiscal Policy and Deficit-to-GDP Ratio
The report outlined plans for a more proactive fiscal policy alongside a moderately accommodative monetary policy. China has set its deficit-to-GDP ratio at approximately 4 percent for 2025, an increase of one percentage point from the previous year.
Economist Tian Yun highlighted that this marks the first time China has set the deficit-to-GDP ratio at 4 percent. He noted that this move signals policymakers’ enhanced efforts to address challenges and drive high-quality economic growth. The increase in fiscal spending is expected to play a crucial role in supporting economic expansion while ensuring improved efficiency in resource allocation.
Enhancing Social Vitality and Domestic Demand
The report emphasized the need to stimulate social vitality by firmly implementing the strategy of expanding domestic demand. China aims to strengthen its domestic economy, drive expansion, and broaden international cooperation through further opening up.
To achieve this goal, China plans to issue 1.3 trillion yuan (approximately $182 billion) in ultra-long special treasury bonds in 2025, reflecting an increase of 300 billion yuan compared to the previous year. Additionally, the central government has allocated 735 billion yuan for investment in 2025.
The report also underscored China’s commitment to higher-standard opening-up, stabilizing foreign trade and investment, and fostering a world-class business environment.
Since last year, China has fully implemented a negative list for cross-border trade in services, initiated opening-up trials in value-added telecom services, biotechnology, and wholly foreign-owned hospitals, and granted zero-tariff treatment for 100 percent of tariff lines to the least developed countries with diplomatic ties to China.
Advancing Innovation and Technology Development
The report reaffirmed China’s dedication to innovation-driven growth, highlighting the importance of achieving technological self-reliance, advancing major scientific projects, and fostering an innovation-friendly environment.
Leading enterprises like Xiaomi have demonstrated the significance of innovation in high-end development. Speaking at the Deputies’ Corridor before the NPC session, Xiaomi’s founder and CEO, Lei Jun, emphasized that the company’s success is rooted in its commitment to innovation.
Xiaomi has consistently ranked among the top three global smartphone manufacturers for 18 consecutive quarters, reflecting the rising global recognition of Chinese technology and brands.
To further strengthen innovation, China plans to reform research institutions, enhance collaboration between industries and academia, empower enterprises in the innovation process, and develop a high-quality talent pool to support young scientists.
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