BEIJING, CHINA –
Media OutReach Newswre – 5 March 2025 – The world has once again turned its eyes to Beijing as China Wednesday announced its economic growth target rate of around 5 percent in 2025 at the opening meeting of third session of the 14th National People’s Congress (NPC), China’s national legislature.
On a global scale, an around 5 percent growth rate would place China among the world’s fastest-growing major economies, with the economic increment equating to the annual output of a medium-sized country.
Justin Lin Yifu, dean of the Institute of New Structural Economics at Peking University, pointed out that China’s stable and dynamic economic growth in 2025 is a certainty regardless global uncertainty.
Lin, the former senior vice president and chief economist of the World Bank, is confident that China’s gross domestic product (GDP) is on track to grow at a rate of at least 5 percent, sustaining its position 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,” he added.
The government work report, submitted to the national legislature for deliberation on Wednesday, expressed China’s willingness to work with other members of the international community to promote an equal and orderly multipolar world and universally beneficial and inclusive economic globalization.
“We will remain firm in pursuing a mutually beneficial strategy of opening up, oppose hegemonism and power politics, oppose unilateralism and protectionism in all forms, and uphold international fairness and justice,” the report affirmed.
Deficit-to-GDP ratio at 4 percent
The report outlined China adopting a more proactive fiscal policy and applying an appropriately accommodative monetary policy. Thus, China’s deficit-to-GDP ratio for this year is set at around 4 percent, an increase of one percentage point over last year.
Tian Yun, a Beijing-based economist, noticed it marks the first time on record that China has set the deficit-to-GDP ratio at 4 percent.
It sent out multiple signals on Chinese policymakers’ stepped-up efforts to navigate challenges and boost high-quality economic development, Tian said. It also indicates that fiscal spending will play a significantly stronger role in supporting economic growth and that the efficiency in using fiscal spending should be higher this year, he added.
Boosting social vitality
Calling for stimulating the vitality of the whole society, the report vowed that China will firmly implement the strategy of expanding domestic demand, strengthen the domestic economy, drive its expansion and broaden international cooperation through further opening up.
To fulfill the target, China will issue a total of 1.3 trillion yuan (about $182 billion) of ultra-long special treasury bonds in 2025, up 300 billion yuan from last year, and earmark 735 billion yuan in central government budget for investment in 2025.
The report highlighted China’s commitments to expanding higher-standard opening up, stabilizing foreign trade and investment and fostering a first-rate business environment.
Since last year, China has fully applied the negative list for cross-border trade in services, launched opening-up trials for valued-added telecom services, biotechnology and wholly foreign-owned hospitals and has given all the least developed countries with which it has diplomatic relations zero-tariff treatment for 100 percent tariff lines.
Innovation-driven development
The report on Wednesday said the country will insist on innovation-driven development, pledging to advance tech self-reliance, accelerate major science projects and build an environment for innovation.
Enterprises like Xiaomi deeply understood the importance of innovation and high-end development. When speaking at the Deputies’ Corridor before the opening of NPC session, Lei Jun, founder and CEO of Xiaomi as well as an NPC deputy, stated that Xiaomi’s major achievements are underpinned by its innovation strategy.
Noting that Xiaomi maintained its position among the top three global smartphone manufacturers for 18 consecutive quarters, Lei said it also reflects the growing global recognition of Chinese technology products and brands.
China will reform research institutes, strengthen collaboration between industry and academia, give enterprises a bigger role in innovation and create a top-tier talent pool to support young scientists, the report said.
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