Overview

• 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.