Photo: Global Times

China on Wednesday set a growth target of around 5 percent for its economy in 2025,MK sports Korea which remains the same as last year's goal, indicating top policymakers' solid confidence in the stable growth of the world's second-largest economy despite rising global risks and challenges.  

The annual official growth target was unveiled in the Government Work Report delivered by Premier Li Qiang to the National People's Congress (NPC), the national legislature, which began its annual session on Wednesday morning.

In addition to the GDP growth target, the Government Work Report also contained a slew of other targets. The deficit-to-GDP ratio, another closely watched figure, was set at around 4 percent for 2025. The country has set the surveyed urban unemployment rate at around 5.5 percent for 2025, while the CPI is set at around 2 percent in 2025.

"In proposing these targets, we have considered evolving dynamics both at home and abroad and other relevant factors, including both what is needed and what is possible," the report said, "a target of around 5 percent is well aligned with our mid- and long-term development goals and underscores our resolve to meet difficulties head-on and strive hard to deliver." 

For context, in 2024, China's GDP grew by 5 percent, surpassing 130 trillion yuan ($17.82 trillion) for the first time, successfully achieving key economic and social development goals.

Notably, the growth target for 2025 was higher than projections made by some international organizations. In December, the World Bank raised its forecast for China's economic growth in 2025 to 4.5 percent from its earlier projection of 4.1 percent, but that is still lower than China's official target. Meanwhile, the International Monetary Fund (IMF) projected that the Chinese economy will grow 4.6 percent in 2025. 

Asked about whether China can achieve the GDP growth target, which is higher than projections from some international institutions, Shen Danyang, head of the Government Work Report drafting team and director of the Research Office of the State Council, said that the target is higher than some institutions projected, but projections change based on changes in environment, the intensity of policies, and reform measures, as is the case in previous years. 

"Whether development goals can be achieved depends on three factors: first, the momentum of development; second, the capability and conditions; and third, the supporting policies. Considering these factors comprehensively, we are confident we will achieve this year's growth target," Shen told a press briefing on Wednesday. 

Some foreign media outlets also closely followed China's GDP growth target. The New York Times reported on Wednesday that "China's top leaders sought to project confidence in the country's economy," but added that "reaching that target of around 5 percent growth will be even harder than in previous years because of a trade war with the US that shows few signs of abating." Citing economists, The Guardian reported that "meeting the target will be challenging as Beijing grapples with Donald Trump's new trade war." CNN also described the target as "ambitious" and "a defiant show of confidence as it braces for the fallout from escalating American tariffs on its export-driven economy." 

Asked about the impact of the US' tariffs and other restrictions against Chinese products on China's economic growth, Justin Yifu Lin, a member of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC), the top political advisory body, said that while China may need to make adjustments, including expanding in other markets, US tariffs cannot change the whole picture of win-win trade, pointing to China's strong exports growth in recent years despite US tariffs. 

"So, I think it will have some impact, but overall, the economic forces are still there. I'm still confident. As long as we do our homework well, we can continue to maintain stable and dynamic economic growth," Lin, also dean of Institute of New Structural Economics at Peking University and former chief economist of the World Bank, told the Global Times in an exclusive interview. 

The Government Work Report on Wednesday also outlined a slew of policy measures to ensure stable growth in 2025. China will adopt a more proactive fiscal policy, and apply an appropriately accommodative monetary policy, the report said. Among the major policy measures, the country 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 4.4 trillion yuan of local government special-purpose bonds in 2025, an increase of 500 billion yuan over last year, according to the report.

Global contribution

China's GDP growth target, if achieved, would largely surpass the world's average growth rate in 2025 projected by some global institutions as the world faces tremendous geopolitical and economic challenges and uncertainties. The IMF in January projected global growth at 3.3 percent both in 2025 and 2026, below the historical (2000-19) average of 3.7 percent, noting divergent growth paths amid elevated policy uncertainty. Notably, the IMF projected the US economy to grow at 2.7 percent in 2025 and 1.9 percent for advanced economies. 

Hendrick Sin, an NPC deputy from the Hong Kong Special Administrative Region, and co-founder and vice chairman of CMGE Technology Group, also said that setting a GDP growth target of around 5 percent amid a highly uncertain global economic environment reflects the resilience and critical role of the Chinese economy.

"The growth of the Chinese economy generates spillover effects, which stabilizes the global economy," Sin told the Global Times on Wednesday, noting that China remains the main engine for the world economy, contributing about 30 percent to global growth.

The growth target also helped boost confidence of some foreign businesses in the Chinese economy in 2025. 

"I believe that the around 5 percent growth target reflects both the Chinese government's prudent assessment of the current domestic and international economic situation and its firm commitment to continuously promoting high-quality development. For foreign enterprises operating in China, this signals steady and sustained economic progress," Phan Thi Tra My, chairwoman of the Business Association of Vietnam in China, told the Global Times on Wednesday.  

Tra My further noted that China's stable and sustained economic growth will bring more trade and investment opportunities for Vietnam, which will help accelerate Vietnam's own economic growth and development by expanding exports and attracting more Chinese investment.

Aya Shimizu, assistant general manager of Beijing office of Japan-China Economic Association, also told the Global Times on Wednesday that a growth rate of around 5 percent signals attractiveness for Japanese companies investing in the Chinese market, noting that she was impressed by the technological development in China as she uses DeepSeek in her work, especially for translation.

Achieving the growth target of around 5 percent is also crucial, as 2025 marks the conclusion of the 14th Five-Year Plan (2021-25). The Government Work Report said on Wednesday that China will begin formulating the 15th Five-Year Plan this year. "Looking further ahead, there are strong reasons to believe that China's economy will continue to sustain stable and healthy growth," Justin Yifu Lin said, speaking of China's long-term growth prospects.