China has set a 2025 growth target of “around 5%,” a defiant show of confidence as the country braces for the fallout from escalating American tariffs on its export-driven economy. The target was announced by Premier Li Qiang in his government work report at the National People’s Congress, the country’s rubber-stamp legislature.
Li stated that China will prevail over any difficulty in pursuing development and described its economy as a “giant ship” that will continue to sail steadily towards the future. Despite mounting trade pressure from the US and other countries, Li vowed to support emerging industries such as bio-manufacturing, quantum technology, and AI.
However, analysts are skeptical about the measures unveiled by China, with some saying they may not be enough to prevent growth from slowing down this year. The country has raised its budget deficit to around 4% of gross domestic product, the highest level in decades, in an effort to ramp up spending to counter the impact of US tariffs.
China also imposed retaliatory measures against the US, including tariffs of up to 15% on selected American imports and expanding export controls to a dozen US firms. Beijing has warned that it will fight back if the US insists on waging a trade war.
The move reflects China’s commitment to its high-tech ambitions despite the economic challenges posed by US trade tensions. The government earmarked an annual budget of 398 billion yuan ($54.7 billion) for science and technology expenditures for 2025, an increase of 10% from last year.
As tensions between China and the US continue to escalate, the country’s leadership is seeking to project confidence in its ability to stay the course despite mounting trade pressure.
Source: https://edition.cnn.com/2025/03/04/business/china-npc-economy-growth-trade-hnk-intl/index.html