China Sets 5% Growth Target for 2025 Amid Economic and Trade Challenges

Premier Li Qiang outlines plans to boost domestic demand and address economic hurdles as the U.S. imposes new tariffs on Chinese goods.

China's government has set an economic growth target of approximately 5% for 2025, matching its 2024 goal, despite ongoing challenges in key sectors such as real estate and youth employment.
Premier Li Qiang emphasized strengthening domestic demand as a primary driver of growth, with plans to increase household consumption and raise the budget deficit to 4% of GDP.
The annual 'Two Sessions' political meetings have begun, providing a platform for outlining China's economic and policy priorities, including job creation and debt restructuring for local governments.
New U.S. tariffs on Chinese imports, ranging from 10% to 15%, have escalated trade tensions, prompting China to announce retaliatory measures and plans to seek recourse through the World Trade Organization.
Observers are closely monitoring potential increases in China's military budget and policy signals on Taiwan, as well as measures to support private sector growth and counteract deflationary pressures.