During a recent political gathering in Beijing, Chinese President Xi Jinping expressed confidence in the nation’s economy, asserting that China is on track to achieve its 5 percent growth target for 2025. He characterized the year 2025 as “extraordinary,” highlighting the resilience of the Chinese economy in overcoming external challenges and making significant strides in science and technology.
Xi noted that, despite facing a prolonged crisis in the property sector, which has adversely affected consumer spending and investment, China’s economy has shown notable vitality. Specifically, he mentioned that while strong exports have bolstered growth this year, the government is committed to revitalizing domestic consumption, an area of persistent weakness for the country of 1.4 billion people. Recent measures to address this include increased fiscal support and a consumer goods trade-in scheme designed to stimulate sales of electronics and other household items.
The president projected an annual growth rate of approximately 5 percent for 2025, aligning with expectations for 2024 and reaffirming China’s status as a leading global economy. He forecasted total economic output to reach around Rmb140 trillion (approximately $20 trillion). In the third quarter, however, the economy grew by only 4.8 percent, representing its slowest pace in a year.
In addition to economic growth, Xi emphasized China’s role in fostering a new international order amid global instability. His administration aims to enhance global governance and bolster multilateral cooperation. As part of future initiatives, Xi indicated that the forthcoming five-year plan will aim to enhance consumption while still focusing on high-tech manufacturing and self-sufficiency in key sectors to address longstanding challenges, particularly in relation to the U.S.
Why this story matters
- Highlights China’s resilience amid economic challenges and strategic growth targets.
Key takeaway
- China is projected to achieve a 5 percent growth rate by 2025, emphasizing consumption and tech advancements.
Opposing viewpoint
- Critics may argue that ongoing issues in the property sector and slow growth could undermine these targets.
