China remains confident in achieving its 2025 economic growth target of around 5%, Vice Head of State Planner Zhao Chenxin said during a press briefing on Monday. Zhao emphasized that despite mounting external challenges, China is on track to meet its growth goals, bolstered by a series of strategic policies designed to strengthen its economic recovery.
China confident in 2025 growth target
Zhao revealed that new policy measures would be introduced in the second quarter of 2025, aimed at enhancing domestic consumption, boosting industrial output, and supporting the broader economic recovery. These policies, Zhao noted, would be flexible and adaptive, with further actions planned as the global economic landscape evolves, particularly in light of trade tensions and geopolitical uncertainties.
Zhao’s comments come at a time when the Chinese economy is facing multiple external pressures, including ongoing tariffs imposed by the United States under President Donald Trump’s administration. Despite the adverse effects of these tariffs, which have contributed to a slowdown in trade and industrial activity, Chinese policymakers remain optimistic. Zhao expressed confidence that the U.S. would eventually ease its stance, creating room for Beijing to implement its planned stimulus measures, which could include tax breaks, infrastructure spending, and further support for exporters. The Chinese government is hopeful that such measures will help offset the negative impact of the tariff dispute and pave the way for a more balanced and resilient recovery.
PBoC to keep loose monetary policy
In line with this, Deputy Central Bank Governor Zou Lan reaffirmed that China would continue its moderately loose monetary policy. Zou emphasized the importance of maintaining economic support through targeted fiscal and monetary measures, including low interest rates and liquidity injections, to ensure stable growth. The People’s Bank of China (PBoC) has been proactive in addressing economic challenges, and Zou reassured markets that China’s monetary policy would remain flexible, adjusting as needed to ensure continued stability. This approach is aimed at stimulating domestic demand, encouraging investment, and providing liquidity to businesses that have been impacted by both domestic and international uncertainties.
China promises new policies for the second quarter
Zou also addressed concerns about the stability of the yuan, noting that China’s foreign assets were minimally affected by recent volatility in the U.S. bond market, a key area of concern for many emerging market economies. He highlighted the resilience of China’s foreign exchange reserves and reiterated the PBoC’s commitment to actively managing market expectations for the yuan. This includes a careful approach to currency fluctuations to prevent excessive volatility, which could undermine investor confidence and destabilize the broader economy. The central bank’s efforts to maintain the yuan’s stability are seen as crucial to ensuring that China remains an attractive destination for foreign investment while managing potential risks arising from global market shifts.
In sum, China’s economic leadership remains committed to navigating external challenges with a mix of flexible policy adjustments, continued monetary support, and strategic stimulus measures. While external factors like U.S. tariffs and global trade tensions remain significant obstacles, Chinese officials are optimistic about the country’s ability to meet its economic targets and maintain stability in the face of global uncertainties.
