China Sets Economic Targets and Policies for 2025

The Chinese government has presented its key economic objectives and strategies for 2025 in a recent work report unveiled to the national legislature.

The country aims for an economic growth target of approximately 5 percent alongside a yearly consumer price index increase of around 2 percent for 2025.

In a move to boost fiscal spending, China plans to issue 1.3 trillion yuan (around 182 billion U.S. dollars) in ultra-long special treasury bonds, marking an increase of 300 billion yuan from the previous year.

Additionally, the report indicates that China’s new government debt will reach 11.86 trillion yuan in 2025, which is an increase of 2.9 trillion yuan from the preceding year.

China is also set to issue 4.4 trillion yuan in special-purpose bonds for local governments, reflecting a 500 billion yuan increase from last year.

To invigorate the economy, the government will adjust monetary policies, which may include lowering required reserve ratios and interest rates as necessary. A proposal to issue 500 billion yuan in special treasury bonds to aid large state-owned commercial banks in strengthening their capital is also included.

Moreover, the report outlines plans to enhance structural monetary policy tools to offer better support for the real estate market and the stock market. Initiatives to encourage consumer spending will be launched, including the allocation of 300 billion yuan for programs aimed at encouraging the trade-in of consumer goods.

The Chinese government will also focus on the integrated development of strategic emerging industries as well as the advancement of new future industries. Comprehensive reforms in investment and financing will be emphasized to attract more long- and medium-term capital into the capital markets.

The report highlights a commitment to the responsible growth of the platform economy, recognizing its potential to foster innovation, increase consumption, and stabilize employment rates. Particular support will also be extended to the growth of unicorn and gazelle companies in 2025.

To maintain financial security, China plans to enhance contingency measures to effectively handle external shocks, ensuring the stability of its financial system. Encouragement of private investment is also a priority, directing more capital towards major infrastructure and public welfare projects.

The surveyed urban unemployment rate goal for 2025 is set at around 5.5 percent, which is vital for providing further support to stabilize employment across the country.

China, Economy, Policies