China maintains its goal of achieving a 5% economic growth rate by 2025

BEIJING – China is keeping its economic growth target at “around 5%” for 2025 despite a looming trade war with the United States and other headwinds.

The GDP growth target was revealed in a report delivered by Premier Li Qiang during the commencement of the annual meeting of China’s legislature, the National People’s Congress. This target serves as a gauge of the government’s determination to enhance growth during economically challenging times.

The IMF has projected China’s economy will grow 4.6% this year, down from 5% in 2024, according to Chinese government statistics.

The government report stated, “A target of around 5% is well aligned with our mid- and long-term development goals and underscores our resolve to confront difficulties and put in every effort to achieve them.”

The most recent threat to the Chinese economy is the blanket tariffs imposed on Chinese goods by U.S. President Donald Trump, compounding existing issues caused by a prolonged decline in the real estate sector, slow consumer spending, and reduced private business investments.

China’s ruling Communist Party signaled in December that it would step up efforts to boost the economy this year. The U.S. tariffs have made that task more urgent, because they could crimp sales to one of China’s major export markets.

At the same time, Chinese leader Xi Jinping wants to wean the economy off its long-running dependence on the highly indebted real estate market. He is pushing economic resources into developing a more innovative, high-tech economy — and with growing restrictions on U.S. technology exports to China, one that isn’t beholden to other countries for the most powerful semiconductors and other electronic components.

That has remained the overarching long-term economic goal of the Communist Party, though it has showed growing concern since September and a possible shift in emphasis toward shoring up growth in the short-term.

The government is giving rebates to consumers who trade in old cars or appliances for new ones and to businesses that upgrade their machinery and equipment. The party also announced in December that the central bank would shift its monetary policy from “prudent” to “moderately loose” for the first time in more than a decade.

The government, following the party’s leadership, is expected to borrow more this year, spend more on the rebate program and possibly increase pensions and health care benefits. The question is whether it will be enough to stabilize the economy and reach its target for growth.