On Wednesday, China released its 2025 economic growth goal of around 5 percent during the opening session of the third meeting of the 14th National People’s Congress (NPC), the country’s legislative body.
On a global scale, achieving a 5 percent growth rate would position China among the fastest-growing major economies. The economic gain would be comparable to the yearly output of a medium-sized nation.
Justin Lin Yifu, head of the Institute of New Structural Economics at Peking University, stressed that China’s economic growth in 2025 is expected to remain stable and robust, even amid global uncertainties.
Lin, a former World Bank senior vice president and chief economist, expressed confidence that China’s GDP will grow by at least 5 percent. He highlighted that this growth would continue to make China a significant contributor to global economic expansion, accounting for over 30 percent of worldwide growth.
“This is not only good news for China but for the entire world,” he told CGTN.
A government work report, shared with the legislature on Wednesday, emphasized China’s commitment to working with the global community to foster a fair, balanced, and inclusive form of globalization. The report also called for building a multipolar world that benefits all nations.
“We will stay committed to a strategy of mutual benefit and openness, oppose hegemony and power politics, and reject unilateralism and protectionism in all forms while upholding international justice,” the report stated.
Deficit-to-GDP Ratio Set at 4 Percent
The report proposed a more active fiscal policy and a suitably accommodative monetary approach. It set this year’s deficit-to-GDP ratio at about 4 percent, a one-percentage-point increase from last year.
Economist Tian Yun, based in Beijing, noted that this is the first time China has established the ratio at 4 percent. He explained that this move signals the government’s intention to address challenges and push for high-quality development. Tian also pointed out that fiscal spending would play a greater role in boosting growth, with a stronger focus on efficient use of these funds.
Encouraging Social and Economic Growth
The report underlined the need to stimulate societal energy and drive domestic growth by firmly implementing strategies to expand domestic demand. It also pledged to strengthen the domestic economy while improving international cooperation through further openness.
To achieve these goals, China plans to issue 1.3 trillion yuan (roughly $182 billion) in special ultra-long-term treasury bonds in 2025, a 300 billion yuan increase compared to the prior year. Additionally, 735 billion yuan will be allocated from the central government’s budget for investment.
The report reaffirmed China’s dedication to creating a better environment for business, stabilizing foreign trade and investment, and expanding access to global markets. Since last year, China has fully implemented a negative list for cross-border trade in services, introduced trials for opening up sectors like biotech, telecom services, and foreign-owned hospitals, and granted zero tariffs on all goods from the least developed countries with which it maintains diplomatic ties.
China’s Focus on Innovation
The report also stressed the importance of innovation, promising to boost technological independence, accelerate major science projects, and create an environment that supports new ideas.
Companies like Xiaomi have embraced this focus on innovation. Speaking at the NPC session, Lei Jun, Xiaomi’s founder and CEO, highlighted how the company’s commitment to innovation has driven its success. He noted that Xiaomi has remained one of the top three global smartphone brands for 18 consecutive quarters, reflecting the rising global recognition of Chinese technology.
The report outlined plans to reform research institutions, encourage collaboration between industries and universities, and give businesses a leading role in driving innovation. It also emphasized developing a top-tier talent pool to support young researchers and scientists.
