The world is watching Beijing closely as China sets an ambitious economic growth target of around 5 percent for 2025 during the opening of the third session of the 14th National People’s Congress (NPC), China's national legislature.
Achieving a 5% growth rate would position China among the world’s fastest-growing major economies, contributing significantly to global economic stability and growth.
Economic Stability Amid Uncertainty
Justin Lin Yifu, dean of the Institute of New Structural Economics at Peking University and former chief economist of the World Bank, expressed confidence in China’s economic trajectory. Lin believes that China’s GDP will grow by at least 5 percent, maintaining its role as a key driver of global growth by contributing over 30 percent to global expansion.
\"That is good news – not just for China but also for the world at large,\" Lin added.
The government work report emphasized China’s commitment to promoting an equal and orderly multipolar world and fostering inclusive economic globalization. The report outlined plans to adopt a more proactive fiscal policy and a supportive monetary policy, setting the deficit-to-GDP ratio at around 4 percent for this year—a first on record.
Boosting Social Vitality
China aims to stimulate societal vitality by expanding domestic demand and strengthening the domestic economy. The government plans to issue a total of 1.3 trillion yuan (about $182 billion) in ultra-long special treasury bonds in 2025, up by 300 billion yuan from the previous year, and allocate 735 billion yuan from the central budget for investment.
These measures signal a significant increase in fiscal spending to support high-quality economic development and enhance the efficiency of fiscal investments.
Innovation-Driven Development
The NPC report highlighted China’s focus on innovation-driven development, pledging to advance technological self-reliance and accelerate major science projects. Enterprises like Xiaomi are leading the charge, with CEO Lei Jun attributing Xiaomi’s global success to its strong innovation strategy.
\"Maintaining our position among the top three global smartphone manufacturers for 18 consecutive quarters reflects the growing global recognition of Chinese technology products and brands,\" Lei Jun stated.
China plans to reform research institutes, strengthen industry-academia collaboration, and foster a talent pool to support young scientists, ensuring a robust environment for innovation.
Reference(s):
cgtn.com
