China sets 2025 economic growth target roughly at 5% amid rising trade pressures

China has set its economic growth target at approximately 5% for 2025, according to media reports citing official documents. 

The announcement comes as the country faces mounting economic and trade challenges, particularly from the United States.

Premier Li Qiang is expected to formally present the target during his address at the National People's Congress (NPC) today (Wednesday). 

The NPC, China’s top legislative body, convenes annually to outline key economic and social policies. 

This year’s session, which began on March 5, will focus on reviewing the government’s 2024 economic performance and approving the 2025 economic and social development plan.

Beijing’s decision to maintain a 5% growth target signals its commitment to sustaining economic momentum despite increasing global economic uncertainty.

The move comes amid intensified trade tensions with the United States, which recently imposed 20% tariffs on various Chinese imports.

The additional tariffs are expected to put further strain on China’s export sector, prompting the government to consider countermeasures.

To offset external pressures and stabilize domestic demand, China is set to implement aggressive fiscal measures.

Reports indicate that the government will raise its budget deficit to 4% of GDP and issue 1.3 trillion yuan in special treasury bonds. These funds are expected to support economic growth by boosting consumer spending and mitigating deflationary risks.

The proposed economic strategy includes direct financial support for key sectors.

Subsidies will be provided for electric vehicles and household appliances to stimulate domestic consumption.

Additionally, significant investments will be directed toward advanced manufacturing and technology industries, reinforcing China’s push for self-sufficiency in high-tech production.

In response to concerns over weak inflation, the government has also adjusted its official consumer price increase target to approximately 2%, the lowest level since 2003.

This reflects ongoing deflationary pressures and Beijing’s cautious approach toward stabilizing prices.

China’s annual parliamentary gathering, known as the "Two Sessions," runs from March 5 to March 11 in Beijing.

The high-profile event brings together national lawmakers and political advisors to discuss policy direction, economic strategies, and long-term development goals.

With global trade tensions escalating and domestic economic challenges mounting, all eyes remain on Beijing’s policy maneuvers as it seeks to maintain stability and achieve its ambitious growth target.