China sets economic growth target with confidence

On March 11, 2025, China's annual "two sessions," the annual meetings of China's top legislature, the National People's Congress (NPC), and the top political advisory body, the National Committee of the Chinese People's Political Consultative Conference (CPPCC), concluded in Beijing.

This photo taken on March 4, 2025 shows the Great Hall of the People in Beijing, capital of China. The third session of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC) held its opening meeting here on March 4. [Xinhua/Jin Liangkuai]

At press conferences held during the event, foreign journalists raised many questions about China's economy. How should we view China's economic outlook, and what steps are being taken? By examining the key topics highlighted by foreign media, we can sense the strong momentum behind China's high-quality economic growth.

The report on the work of the government delivered at the third session of the 14th NPC set a GDP growth target at around 5 percent for 2025, which is a medium to high level target compared to major economies and is above some international forecasts. What's driving this confidence, and is the target achievable?

China is fully confident in achieving the economic growth target of around 5 percent this year as there is a solid foundation, support and guarantees, Zheng Shanjie, head of the National Development and Reform Commission, told a press conference on March 6.

Looking back, China has delivered impressive economic results. Between 2020 and 2022, China's GDP grew at an average annual rate of around 4.5 percent, with a growth rate of 5.2 percent in 2023.

Despite facing complex domestic and global challenges in 2024, China met its key economic and social development goals. The country's GDP surpassed 130 trillion yuan (about $17.95 trillion) for the first time, growing by 5 percent.

Today, China's high-quality development is gaining momentum. New industries, business formats and models now account for over 18 percent of GDP.

China's new energy vehicle production has exceeded 13 million units, making up more than 60 percent of global output. Integrated circuit production is increasing rapidly, with exports hitting a record 1.1 trillion yuan. Total R&D spending has surpassed 3.6 trillion yuan, up 8.3 percent, while the number of domestic enterprises holding valid invention patents has grown by 16.1 percent to nearly 500,000.

These figures highlight the rapid emergence of new growth drivers and reinforce China's positive long-term economic outlook.

The around 5 percent growth target offers guidance for improving the quality of economic development while ensuring reasonable growth. It also signals China's commitment to high-quality development, encouraging both domestic and international audiences to view China's economy in a reasonable manner.

A key focus at this year's "two sessions" was what policies China might introduce to boost consumption and position domestic demand as a main driver and stabilizer of economic growth.

The government work report mentioned that China will take a people-centered approach and place a stronger economic policy focus on improving living standards and boosting consumer spending. The country will boost and upgrade consumption to stimulate economic flows and industrial upgrading.

The government work report also said China should adopt a more proactive fiscal policy, and apply an appropriately accommodative monetary policy. The country has raised its deficit-to-GDP ratio by one percentage point compared to last year, and will issue ultra-long special treasury bonds totaling 300 billion yuan to support consumer goods trade-in programs.

The country will reduce financial burdens, increase spending power, boost the supply of quality products and services, create effective demand, and improve the consumption environment to boost consumption through tangible measures.

Recently, China's consumer market has continued to expand, with increasingly diverse and innovative spending scenarios. According to the National Bureau of Statistics, total retail sales of consumer goods reached approximately 48.8 trillion yuan in 2024, up 3.5 percent from the previous year.

During the "two sessions," China's efforts to expand and steer its opening up drew considerable attention from foreign media.

With global economic growth losing momentum and increasing challenges to globalization, China's economic policy signals are crucial not just for its own development but for global economic development and prosperity as well.

Regardless of changes in the external environment, China should remain steadfast in its commitment to opening up. The country should steadily expand institutional opening up and take the initiative to open wider and advance unilateral opening up in a well-ordered way, so as to promote reform and development through greater openness, according to the government work report.

In 2024, China's 5 percent economic growth contributed roughly 30 percent to global growth. China has given all the least developed countries with which it has diplomatic relations zero-tariff treatment for 100 percent tariff lines starting from Dec. 1, 2024, driving an 18.1 percent increase in imports from relevant nations that month.

The views don't necessarily reflect those of Qiushi Journal.