Overview

• China's government has announced a 5% economic growth target for 2025, despite domestic challenges like weak consumer demand, a struggling real estate sector, and deflationary pressures.
• Tensions with the US escalate as President Trump doubles tariffs on Chinese imports to 20%, prompting China to impose retaliatory tariffs on US agricultural products and sanction certain American firms.
• China's military budget will increase by 7.2% to 1.78 trillion yuan (approximately €231 billion), continuing efforts to modernize its armed forces into a 'world-class military' by 2049.
• Beijing reaffirmed its stance on Taiwan, emphasizing its claim to the island and signaling readiness for reunification, potentially through military means if necessary.
• The government also plans to boost funding for artificial intelligence and future industries, aiming to enhance innovation and stabilize the domestic economy.